Luthfi Urges Faster Permits for 12 Industrial Estates in Central Java
Jakarta, CNBC Indonesia — Central Java Governor Ahmad Luthfi has urged the Investment and Downstreaming Ministry to accelerate the permitting process for 12 new industrial estates in Central Java. Faster permits are considered important to promote economic growth and create more jobs.
“Permits in Vietnam take just two months. Here, two years would be considered very good. So, Minister, let’s push for acceleration,” Luthfi said after an event to establish the Investment Desk at Grhadika Bakti Praja Building in Semarang on Wednesday (11 November 2026).
The Central Java provincial government is encouraging 12 regencies and municipalities to identify potential sites for new industrial estates, each covering at least 50 hectares and conforming to spatial plans. The estates are expected to provide new investment locations for prospective investors and expand economic growth centres across the region.
Alongside pressing for faster permits, Luthfi is preparing supporting infrastructure for the industrial estates. Planned projects include developing a dry port in Batang, port facilities in Kendal, and revitalising Tanjung Emas Port in Semarang.
“Logistics infrastructure readiness is also important to facilitate the distribution of goods and reduce industrial operating costs. The Central Java provincial government is serious about investment, so we must convey our commitments to prospective investors,” Luthfi added.
Deputy Investment and Downstreaming Minister and Deputy Head of the Investment Coordinating Board (BKPM), Todotua Pasaribu, responded to the request by pledging that the permits could be processed within 30 days at the latest, provided all requirements were complete.
“We will certainly help good businesses. It will take us no more than 30 days. The 12 industrial estates mentioned by the Governor are already being processed; they will be completed within 30 days at the latest,” Todotua said.
Todotua acknowledged that permitting remained a longstanding investment challenge, particularly for large-scale, high-risk projects requiring coordination across ministries.
“We will soon summon the 12 industrial estate businesses to clarify matters and accelerate the completion of their permit administration. Thank you, Governor, for your advice and input,” Todotua said.
According to data from the Central Java Investment and One-Stop Integrated Services Agency (DPMPTSP), investment realisation from January to September 2026 reached Rp72.54 trillion, or 73.21% of the annual target of Rp99.09 trillion. This investment generated 340,334 jobs across 82,420 projects.
In the third quarter of 2026 alone, investment realisation reached Rp24 trillion, up 16.78% from the same period a year earlier. The investment generated 127,117 jobs across 26,431 projects. Central Java’s economy grew by 5.83% year on year over the same period.