Central Java Strengthens Investment Climate with New Malls and Hotels Emerging
The pace of economic growth in Central Java continues to accelerate, marked by the emergence of numerous new shopping centres. One of the latest malls is the 23 Semarang Shopping Center, which was inaugurated by Central Java Governor Ahmad Luthfi on Saturday, 13 June 2026. According to Luthfi, the proliferation of new malls proves that Central Java is trusted as a safe and comfortable investment destination. “Amid global fiscal and geopolitical pressures, we are still able to generate investment,” Luthfi said after inaugurating the 23 Semarang Shopping Center and conducting the groundbreaking for Hyatt Place.
The Central Java Investment and One-Stop Integrated Service Agency (DPMPTSP) recorded that realised investment in the province reached Rp23.02 trillion in the first quarter of 2026, absorbing 92,000 workers. For the full year of 2025, total investment was recorded at Rp110 trillion. Luthfi added that the provincial government consistently strives to provide excellent service to investors to ensure the continuous flow of capital. Efforts undertaken by the provincial government include streamlined licensing, guarantees of security and order, and the availability of a quality workforce.
The ease of investment in Central Java is also supported by the availability of industrial estates in various areas. There are approximately seven existing industrial estates spread across Semarang City, Demak Regency, Kendal Regency, Batang Regency, and others. On that occasion, Luthfi noted that the 23 Semarang Shopping Center is not only designed as a retail hub but also functions as an urban garden with green open spaces. This aligns with the provincial government’s push to promote a green economy that does not harm the environment.
“For investments that use renewable energy, we impose tax incentives; this is currently only available in Central Java,” he explained. Furthermore, the 23 Semarang Shopping Center is capable of absorbing around three thousand workers. Luthfi also expressed hope that the development of the mall would, as much as possible, help to energise Micro, Small, and Medium Enterprises (MSMEs) in Semarang City.