Indonesian Political, Business & Finance News

BKPM Sets Up Investment Desk to Accelerate Projects in Central Java

| | Source: LENSAHUKUM.CO.ID Translated from Indonesian | Investment
BKPM Sets Up Investment Desk to Accelerate Projects in Central Java
Image: LENSAHUKUM.CO.ID

BKPM has established an Investment Desk in Central Java to accelerate the realisation of projects worth more than Rp1 trillion and resolve obstacles involving permits, land and infrastructure needs. Based at the Central Java Investment and One-Stop Integrated Services Agency (DPMPTSP), the service will also handle projects in the Special Region of Yogyakarta (DIY) and East Java, according to Money.

Deputy Minister of Investment and Downstreaming and Deputy Head of BKPM Todotua Pasaribu announced the establishment of the service in Semarang, Central Java, on Wednesday (11 November 2026), following the signing of a memorandum of understanding between BKPM and the Central Java provincial government.

Todotua said permitting issues remained a major obstacle to investment, particularly for large-scale, high-risk projects requiring coordination across ministries.

“We are working to clear the bottlenecks affecting investment plans in the regions,” Todotua said.

The Investment Desk is designed to connect the central government, regional administrations and businesses. Through this mechanism, various obstacles disrupting regional investment plans are expected to be addressed in a coordinated manner.

Central Java is the fourth region to have an Investment Desk, after Batam, Bali and North Sumatra.

Central Java Governor Ahmad Luthfi welcomed the establishment of the service as a means of strengthening business certainty and speeding up the resolution of investment-related problems in the province.

“The desk will serve as a representative of the central government in addressing investment problems,” Ahmad Luthfi said.

Luthfi said he hoped cooperation between the central and regional governments would accelerate the development of industrial estates and expand new centres of economic growth in Central Java.

The Central Java provincial government has also asked 12 regencies and cities to prepare potential sites for new industrial estates. Each is expected to cover at least 50 hectares and comply with spatial-planning requirements.

Projects currently being overseen by the provincial government include a garment industry investment worth Rp4.6 trillion, with construction scheduled to begin in December 2026.

There are also plans for a Rp2.9 trillion expansion by a Vietnamese company and the relocation of a Chinese industry, representing an investment of Rp2.17 trillion.

According to Central Java DPMPTSP data, investment realisation from January to September 2026 reached Rp72.54 trillion, equivalent to 73.21 per cent of the annual target of Rp99.09 trillion.

The total came from 82,420 projects and created 340,334 jobs. Investment in the third quarter of 2026 alone was recorded at Rp24 trillion, up 16.78 per cent on the same period a year earlier.

In the third quarter, 26,431 projects employed 127,117 people. During the same period, Central Java’s economy grew by 5.83 per cent year on year.

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