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Banten successfully drives investment realization through diversification
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Merak Port in Cilegon, Banten, is always busy with vehicles and passengers traveling between Java and Sumatra islands.
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nvestment realization in Banten increased significantly throughout 2023 compared with the previous year. This westernmost province of Java Island successfully absorbed investments amounting to Rp 103.85 trillion according to data released by the Investment Ministry/BKPM. This figure represents a 29.46 percent annual increase compared with the realization in 2022, which amounted to Rp 80.22 trillion.
This result surpasses the targets of the Regional Development Plan (RPD) 2023-2026 of the Banten provincial administration (Pemprov). In 2023, Pemprov Banten targeted incoming investments of Rp 60 trillion, while the central government set a target investment of Rp 82.97 trillion.
The head of the Investment and Integrated One-Stop Service Office (DPMPTSP) of Banten province, Virgojanti, stated that the increased investment realization served as an indicator of the conducive investment climate in Banten. Supportive aspects of investment such as infrastructure, transportation, licensing services and the availability of industrial areas will continue to be the focus of evaluation for Pemprov Banten.
Virgojanti revealed that one of the keys to the successful investment realization in Banten during 2023 was the diversification of investments across various sectors. Banten does not rely on only one sector but creates diverse investment opportunities, including in manufacturing, tourism, agribusiness, renewable energy and infrastructure.
The manufacturing sector remains a key sector in this region. Banten has successfully attracted significant investments, such as in petrochemicals, automotive, textiles and electronics. New factories are being built, and existing production capacities are being expanded. This has led to the creation of new jobs and stimulated local economic growth.
The next sector that has attracted investors' interest is tourism through the natural beauty and economic potential of tourism in Banten. Various resorts, hotels and other tourism infrastructure have been developed to support the growth of the tourism sector, creating opportunities for local entrepreneurs and increasing regional income.
One potential area of tourism growth in Banten is Banten Forest Park (Tahura), which offers breathtaking natural beauty and promising investment opportunities. The biodiversity, pristine natural landscapes and easy accessibility make Tahura Banten an attractive destination for nature lovers, investors and business actors.
Tahura Banten is home to various rare and protected flora and fauna. The lush tropical rainforest, enchanting waterfalls and towering Mount Aseupan panorama provide an unforgettable natural experience.
Agribusiness is another sector continually being offered to attract investors and encourage them to invest. Areas with fertile agricultural potential in Banten have sparked increased investment in the agribusiness sector, especially in organic farming, plantations and agro-industry. All of these lines contribute positively to the Banten economy and improve the welfare of farmers and breeders.
Banten's significant potential in developing new and renewable energy (EBT) has also contributed to the increase in investment in the energy sector. Particularly, the development of EBT focused on wind and solar energy. Investment in EBT projects has helped reduce dependence on fossil fuels and supported climate change-mitigation efforts.
Next is the infrastructure sector, which is a destination for investors to invest their capital. Balanced infrastructure development is a priority for Pemprov Banten to attract investor interest, especially supported by national strategic projects (PSN). Investment in road construction, ports and airports has increased regional connectivity and strengthened Banten's position as an economic center in the western part of Java Island.
Acting Banten governor Al Muktabar stated that Pemprov Banten continues to strive to improve business facilitation services and investment prospects for investors. Furthermore, to reassure investors, Pemprov Banten also strives to maintain stability through controlling inflation.
"Doing business in Banten province is profitable. The infrastructure is excellent. There are airports, seaports, toll road networks, good roads and of course rail transportation. Therefore, the support for industry is more than sufficient," he explained.
