Excellent! Central Java's Economy Grows 5.89% – Investment Reaches Rp 23.02 Trillion in Q1
This achievement positions the province above the national average growth rate of 5.61%. Central Java’s economic growth has increased compared to the same period last year, which stood at 4.96%.
In nominal terms, Central Java’s Gross Regional Domestic Product (GRDP) reached Rp 511.99 trillion (current prices), while in real terms it amounted to Rp 315.73 trillion (constant 2010 prices).
Governor of Central Java, Ahmad Luthfi, stated that the 5.89% economic growth is the result of collaborative efforts across sectors, continuously strengthened with the central government, district/city governments, business community, academics, and society.
“Alhamdulillah, this growth indicates a better direction. This is not the work of one party, but the result of mutual cooperation and collaboration from all elements,” he said in a written statement on Tuesday (5/5/2026).
He added that the strengthening of investment serves as an important indicator of increasing confidence in Central Java as a conducive region for business, while also acting as a driver of growth.
“We will continue to maintain this synergy so that economic growth is not only high, but also quality, inclusive, and truly felt by the community,” Luthfi emphasised.
Meanwhile, the Head of BPS Central Java, Ali Said, noted that the processing industry remains the main foundation of the economy with a contribution of 32.69% to GRDP, although its growth is relatively moderate at 4.04%.
This growth figure shows that industry remains the backbone, but the growth momentum is starting to spread to service-based sectors and mobility.
From the expenditure side, household consumption remains the main pillar with a contribution of 60.01%. Meanwhile, government consumption grew significantly by 19.36% (year-on-year). This indicates an acceleration in state and regional spending as an economic stimulus at the beginning of the year.
On a quarterly basis, Central Java’s economy also grew by 1.85% compared to Q4-2025. This strengthening is also supported by the agriculture, forestry, and fisheries sector, which surged by 21.53%, in line with the harvest season and increased food production.
On the external side, exports of goods and services grew by 8.84%, reflecting sustained demand.
This strengthening of economic growth runs parallel with increased investor confidence in Central Java. In the first quarter of 2026, Central Java’s investment realisation was recorded at Rp 23.02 trillion, or 23.23% of the annual target of Rp 99.09 trillion.
The composition consists of Foreign Direct Investment (FDI) of Rp 12.98 trillion (56.40%) and Domestic Direct Investment (DDI) of Rp 10.04 trillion (43.60%).
This investment not only strengthens production capacity but also directly impacts employment absorption, reaching 92,000 people across 24,957 projects.
By sector, investment flows are still dominated by the processing industry, including the rubber and plastics industry, machinery and electronics, as well as labour-intensive sectors like textiles and footwear.
Furthermore, in terms of country of origin, the main investors come from Singapore, Hong Kong, China, Japan, and South Korea, reflecting high global confidence in Central Java’s competitiveness.