Central Java Governor assures investment climate remains conducive

Governor of Central Java Ahmad Luthfi has assured that the investment climate in the region remains conducive despite the world facing various global geopolitical challenges and fiscal pressures. “Central Java remains an attractive area for developing investment, especially labour-intensive industries, but does not rule out capital-intensive industries,” he said in Semarang on Tuesday evening. In fact, Central Java is still considered a magnet for investors thanks to the various facilities and support provided by the regional government. Ahmad Luthfi made the statement at a Business Dinner event with business actors and economic stakeholders from across Central Java, attended by 105 investors and business players. These included foreign investment (PMA) and domestic investment (PMDN) investors, industrial estate managers, and representatives from Bank Jateng. The Central Java Provincial Government continues to strengthen investment competitiveness through licensing simplification, security guarantees, and the provision of a ready-to-use workforce via job training centres, vocational education, and universities. These efforts are beginning to show results. In the January-March 2026 period, investment realisation in Central Java reached Rp23.02 trillion, or 23.23 percent of this year’s investment target of Rp99.09 trillion. This investment consisted of Rp12.98 trillion in foreign investment and Rp10.04 trillion in domestic investment, absorbing around 92,000 workers from 24,997 projects. Throughout 2025, investment realisation in Central Java reached Rp110.64 trillion, absorbing 418,138 workers. In addition to strengthening investment services, the Central Java Provincial Government is also preparing the development of 12 new industrial zones spread across the regencies of Rembang, Demak, Kendal, Batang, Brebes, Cilacap, Banyumas, Kebumen, Semarang, Boyolali, Grobogan, and the city of Semarang. Logistics infrastructure is being strengthened through the development of Tanjung Emas Port in Semarang and dry ports in the Batang and Kendal industrial zones to support industrial activities. On the occasion, Luthfi also encouraged investors to utilise the services of Bank Jateng as part of the regional investment ecosystem. He said that using the bank would strengthen economic circulation in Central Java because the majority of Bank Jateng’s shares are owned by district, city, and provincial governments. Meanwhile, Bank Jateng President Director Bambang Widyatmoko stated that the bank is ready to become a strategic partner for investors through investment financing services, working capital, and banking transactions. Bank Jateng is also open to broader cooperation opportunities with business actors to support investment growth in Central Java.