Central Java First Quarter Investment Realization Increases, Convenience and Security Guaranteed

Central Java is optimistic about achieving the investment realization target in 2024. Until the first quarter of 2024, the realization reached 19 percent.

KOMPAS/P RADITYA MAHENDRA YASA

A truck carrying soil to fill in a swamp and pond area for the construction of a factory in the industrial area of Kaliwungu District, Kendal Regency, Central Java, on Monday (22/5/2023).

SEMARANG, KOMPAS — Investment realization in Central Java in the first quarter of 2024 increased 19 percent from the same period in 2023. Provincial Government Central Java continues to strive to offer convenience and security guarantees to attract investors. The investment realization target from the central government of IDR 77.43 trillion in 2024 is optimistic that it will be achieved.

The Investment Activity Report (LKPM) stated that the realization of investment in Central Java up to the first quarter of 2024 amounted to IDR 15.167 trillion. Of this amount, IDR 9.313 trillion is domestic investment (PMDN) and IDR 5.854 trillion is foreign investment (PMA).

The investment achievement in the first quarter of Central Java is 19 percent higher than the investment realization in the same period in 2023. In the first quarter of 2023, the investment realization in Central Java was Rp 12.78 trillion. The figure consisted of Rp 7.27 trillion in domestic investment and Rp 5.51 trillion in foreign investment.

Also read: Political Year, Central Java Investment Targeted to Increase 10 Percent

KOMPAS/KRISTI DWI UTAMI

Head of the Central Java Investment Service, One Stop Integrated Services (DPMPTSP) Sakina Rosellasari in a press conference at her office, Friday (26/1/2024).

The realization of investments in the first quarter of 2024 in Central Java has reached around 19 percent of the total investment realization target for 2024 set by the Investment Coordinating Board, which is Rp 77.43 trillion. Head of the Investment and Integrated Services One-Stop Office (DPMPTSP) of Central Java, Sakina Rosellasari is optimistic that the target will be achieved. The economy in Central Java is also expected to increase in line with these investments.

"We hope that various investment promotion activities and excellent services that we provide can accelerate investment in Central Java. Through this investment, the economy will improve, unemployment will decrease, and poverty will also be reduced," said Sakina in her statement on Tuesday (May 7, 2024).

According to Sakina, there were 13,927 investment project units built in the first quarter of 2024. Those projects employed 78,204 workers. The number of projects has increased by 66.33 percent compared to the same period in 2023, which was 8,373 units. Meanwhile, the number of workers employed has also increased by 60.28 percent compared to the same period in 2023, which was 48,793 people.

KOMPAS/P RADITYA MAHENDRA YASA

Residents are drying processed sheets of sengon wood that will become raw materials for the plywood industry in Kawengen Village, East Ungaran District, Semarang Regency, Central Java on Tuesday (24/1/2023). The Semarang, Temanggung, Wonosobo, and Kendal areas are centers for producing wood from community forests for industrial purposes. Most of the processed wood is used for plywood factories in several regions of Central Java.

Sakina mentioned that the Government of Central Java Province provides various facilities to attract investors. One of them is by providing assistance center services through phone lines or face-to-face meetings. Face-to-face services are held at the DPMPTSP Jateng office and at 33 public service mall points spread across all districts/cities in Central Java.

Not only does it provide various conveniences and tax incentives, the Central Java Provincial Government also provides security guarantees for investors.

Incentives are also given for Vehicle Tax and Surface Water Tax. This is in accordance with Governor Regulation Number 37 and 38 of 2023 concerning the General Plan for Investment in Central Java Province from 2023-2025.

"What we have been waiting for is investment in the form of incentives in the form of Land and Building Tax and building approvals. That is the authority of the district/city. "Apart from that, investors also hope to get tax relief in the form of tax allowance and tax holiday," he said.

KOMPAS/P RADITYA MAHENDRA YASA

Workers are carrying bamboo to make a barrier that separates the land from the mangrove area in Kaliwungu District, Kendal Regency, Central Java, on Tuesday (30/1/2024). The industrial area of ​​2,200 hectares is starting to develop with the construction of factories by investors who are expanding their businesses.

Not only providing various conveniences and tax incentives, the Central Java Provincial Government also provides security guarantees for investors. According to Acting Governor of Central Java, Nana Sudjana, those who disrupt security in investment will be dealt with.

"We guarantee that Central Java can be said to be quite conducive. The people here are welcome. "Never caused any problems," said Nana.

Nana stated that investment is very important for Central Java. In addition to improving the economy and absorbing employment, through investment, he hopes for technology and knowledge transfer. Nana considers this to be important in enhancing the quality of human resources in the region.

Zhang Chongshun, one of the leaders of Sunra, an electric motorcycle manufacturer from China, said that the harmony of the community and good communication with parties in Central Java prompted him to choose Central Java as the expansion location. In the future, Sunra will build a factory in the Kendal Special Economic Zone (KEK).

KOMPAS/P RADITYA MAHENDRA YASA

Workers are preparing a pulley to move pipes on a natural gas pipeline construction project in Kaliwungu District, Kendal Regency, Central Java, on Monday (22/5/2023). The growth of industrial areas on the north coast, including Kendal and Batang Regency, not only requires land preparation for factories, but also its supporting infrastructure.

Also read: Central Java Targets to Attract Investment of IDR 65.7 Trillion

"Previously, Sunra had conducted surveys to various locations in a number of countries, but found no matches," said Chongsun.

According to Chongsun, Sunra started producing electric motorcycles and bicycles in 1997. Currently, they have five production bases in China with a production capacity of up to 10 million units per year. The factory being built in Kendal is planned to start production in May 2025. According to the plan, one million units per year will be produced from the factory to meet demand in various countries in Asia.

We guarantee that Central Java can be said to be quite conducive. The people here are welcome. Never had a problem.

"We employ around 1,500 people, 95 percent of whom are local workers. Besides using local workers, we also use raw materials from Indonesia. Only a small portion of components still require imports," said Chongsun.

Chongsun added that they will invite manufacturers of components for electric bicycles and motorcycles from China to also invest in Indonesia. If successful, production costs in their company could be reduced.