Indonesian Political, Business & Finance News

Central Java Province Ready to Supply Renewable Energy in Batang Industrial Zone to Boost Investment

| Source: TEMPO_ID Translated from Indonesian | Investment

The Central Java Provincial Government through PT Jateng Petro Energi (JPEN) is committed to supporting the development of renewable energy business (EBT) in the Batang Integrated Industrial Zone (KITB) or Batang Industriopolis Zone.

This commitment is outlined in a memorandum of understanding and Non-Disclosure Agreement (NDA) regarding investment in integrated renewable energy services with zero interruption power systems, signed by PT JPEN and KITB on Friday, 27 February 2026.

Central Java Governor Ahmad Luthfi stated that KITB is one of Indonesia’s strategic national projects and has become a showcase for investment in Central Java. Indirectly, the Central Java Provincial Government has a responsibility to help increase KITB’s competitiveness.

“We cannot allow KITB to have areas where electricity is sometimes on and sometimes off. Develop a strategy, if necessary create a timeline, this renewable energy must be realised as quickly as possible. KITB must become a national example for other industries,” he said.

Renewable energy has become one of the requirements put forward by many foreign investors. Every time Ahmad Luthfi promotes investment potential and industrial zones, the availability of renewable energy to support green and environmentally friendly industries is always on the questions list.

“Then I explain that we have many lakes or reservoirs that can be utilised as sources of renewable energy. Many investors are interested in participating in investment,” he explained.

PT JPEN Chief Executive Director Dwi Budi Sulistiyana said the investment in zero interruption power systems is an effort to realise a continuous 24-hour electricity supply. This will support KITB in becoming the only industrial zone achieving tier 4 status.

“It will eventually attract premium investors such as semiconductors, petrochemicals, data centres, and others. It will also stimulate the creation of jobs with high salaries and technology transfer,” he said.

Dwi explained that JPEN plans to invest in 180 Megawatt energy production. Meanwhile, KITB’s current need is around 60 Megawatt, and in the near term will reach 450 Megawatt. “We will build 180 Megawatt renewable energy to support green economy, make KITB fully renewable energy powered with complete energy sources,” he said.

Meanwhile, KITB Chief Executive Director Anak Agung Putu Ngurah Wirawan appreciated PT JPEN as a partner in developing KITB. According to the roadmap set, KITB cannot only rely on land lease revenue but must be able to generate income in the long term from various sources. One of them is energy.

“JPEN’s presence completes us. Especially since there is already a plan from the central government to utilise the lake as solar panels for energy sources,” he explained.

The electricity reliability concept offered by PT JPEN also strongly supports KITB’s future plans. Particularly the plan for data centre investment into the zone, which requires reliable electricity. “This MoU is the first step so we can increase investment cooperation,” said Ngurah Wirawan.

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