Ahmad Luthfi Prepares Red Carpet for Labour-Intensive Industry Investors in Central Java
SEMARANG — The Central Java Provincial Government is committed to strengthening investment in the labour-intensive industrial sector to support poverty alleviation and unemployment reduction efforts.
This strategic approach encompasses investment climate strengthening, legal certainty guarantees, and the provision of competitive human resources through vocational education programmes integrated with industry needs.
Central Java Governor Ahmad Luthfi emphasised the joint commitment between the provincial government and district and municipal governments to be at the forefront of regional marketing.
“Together with the regents and mayors, we have agreed to be marketing managers for our region. I am confident that Central Java will become an investment warehouse,” he stated, as quoted on Saturday (14 March 2026).
According to data from the Central Java Provincial Investment and One-Stop Integrated Service Office (DPMPTSP), total investment realisations from January to December 2025 reached Rp88.50 trillion. This figure reflects high investor confidence in Central Java’s economic stability.
The composition was dominated by foreign direct investment (FDI), which contributed Rp50.86 trillion, whilst domestic investment (PMDN) contributed Rp37.64 trillion. The synergy between foreign and domestic capital successfully mobilised 105,078 active projects across Central Java, directly impacting the real sector.
This significant investment inflow has translated into substantial employment absorption. A total of 418,139 workers were successfully employed.
Luthfi acknowledged that investment sustainability depends heavily on the availability of workers with competencies matching industry standards. Therefore, the link and match policy is being intensified to align vocational school curricula with real field needs, ensuring local graduates possess high competitiveness and are ready for absorption by major industries.
“We are committed to being investment marketing managers that guarantee legal certainty, security, and ease of doing business. Investors must feel comfortable investing their capital in Central Java,” Luthfi stated firmly.
The government will continue to be a strategic partner for business actors to create inclusive economic growth for all sectors of society.
Beyond the industrial aspect, the Central Java Provincial Government is also paying attention to worker welfare and productivity through cost-of-living efficiency. Concrete support is provided through Trans Jateng public transportation with a special rate of Rp1,000, construction of simple rental apartment complexes (rusunawa) around industrial areas, and the provision of childcare facilities for workers with children.
This strategy is beginning to yield results. In September 2025, the poverty rate in Central Java declined to 9.39%, down from 9.48% in March 2025.
“We are opening the door wide for investors by providing ease of licensing services and investment assistance. Our primary focus is to ensure that every incoming investment can directly improve people’s living standards through the availability of decent employment opportunities,” Luthfi stated.