Central Java Provincial Government Coordinates on HGB for Industrial Zones to Boost Investment - BCA Securities

The Central Java Provincial Government is coordinating with the central government and the management of the Batang Integrated Industrial Zone (KITB) regarding the issuance of Building Use Rights (HGB) to ensure smooth investment in the industrial zone. Central Java Governor Ahmad Luthfi, in Batang on Wednesday, stated that the authority for issuing HGB lies with the Ministry of Agrarian Affairs and Spatial Planning/National Land Agency (ATR/BPN), so local BPN should maintain intensive coordination with the relevant ministry to ensure legal clarity. “Investment is one of the important elements in regional development,” he said. According to him, this coordination is a form of the Central Java Government’s commitment to supporting and overseeing national strategic programmes and the realisation of investments, both those already in place and those yet to come in its territory. Central Java’s investment realisation in 2025 was recorded at Rp88.5 trillion, the largest in the past 10 years. Meanwhile, for investments in KITB, the current progress has reached nearly Rp22 trillion. “The management has a quite substantial target until 2030, namely around Rp70 trillion,” he said.