Apindo pushes Central Java to become Asia's investment hub
The Indonesian Employers Association (Apindo) is encouraging Central Java to develop into an Asian investment hub and a national model for accelerating investment. Apindo’s Head of Employment, Bob Azam, stated on Friday that Central Java has a significant opportunity to become the most competitive region in attracting new investment. He noted that various indicators point to the province’s strengthening competitiveness, including high economic growth in several industrial zones and investment efficiency levels that surpass the national average. The encouragement was conveyed during an audience between Apindo officials and Central Java Governor Ahmad Luthfi at the Governor’s Office in Semarang on Thursday (18/6).
Bob Azam further assessed that accelerating logistics infrastructure development remains a pressing task. Strengthening ports, developing dry ports in Batang and Kendal, and integrating industrial estates with national and global supply chains are considered crucial factors for Central Java to become an international-class investment and logistics centre. Apindo also expressed support for the provincial government’s efforts to turn the region into a hub for investment, manufacturing, logistics, and supply chains capable of competing with regional investment centres, including Vietnam.
During the meeting, Apindo presented a study highlighting Central Java’s strategic advantages. These include its geographical position in the heart of Java Island, a competitive and abundant workforce, continuously developing industrial estates, a conducive investment climate, and increasingly robust infrastructure and connectivity support. Apindo believes that amidst the global industrial relocation trend driven by the China+1 strategy and rising production costs in other investment destinations, Central Java is strategically positioned to capture new investment flows and become a national economic growth engine.
Governor Ahmad Luthfi welcomed the support and reaffirmed his commitment to making Central Java a new economic growth centre that connects the industrial strengths of West Java and East Java. He pointed to the province’s advantages, such as a safe and conducive social environment, competitive labour costs, vocational education support through SMKs and Job Training Centres (BLK), and the local government’s commitment to overseeing regulations, infrastructure, and ease of doing business. Regarding logistics strengthening, Luthfi said that port revitalisation has been proposed to the central government, and the development of the Batang Dry Port has received approval as part of strengthening the investment ecosystem in Central Java.
Meanwhile, Apindo Expert Council member Anton J Supit assessed that the momentum for accelerating investment needs to be reinforced by expanding global market access. One key step is the completion and implementation of the Indonesia-European Union Comprehensive Economic Partnership Agreement (IEU-CEPA), which is believed to enhance Indonesia’s attractiveness as an investment destination and export base. Anton also proposed forming a small team involving the Central Java Provincial Government, the Ministry of National Development Planning (Bappenas), and Apindo to oversee strategic agendas requiring central government support. These agendas include port development, logistics strengthening, industrial estate connectivity, and priority investment acceleration. He believes that with consistent policy support, improved integrated logistics systems, strengthened industrial supply chains, and close collaboration between government and business, Central Java has the opportunity to become Indonesia’s most competitive investment hub and a model for regional economic transformation that attracts global investment, creates productive jobs, and drives sustainable economic growth.