Permits for 12 Central Java Industrial Estates Targeted for Completion Within 30 Days
SEMARANG — The central government is targeting completion of permits for 12 new industrial estates in Central Java within 30 days at the latest. The acceleration is intended to address investment bottlenecks and broaden the choice of locations for investors looking to invest in the province.
The commitment was announced by Deputy Minister of Investment and Downstreaming and Deputy Head of the Investment Coordinating Board (BKPM), Todotua Pasaribu, after a memorandum of understanding was signed between the Ministry of Investment and Downstreaming/BKPM and the Central Java provincial government at Gradhika Bhakti Praja Building in Semarang on Wednesday (11 November 2026).
Todotua said the expedited process followed complaints from Central Java Governor Ahmad Luthfi, who said that industrial-estate permits had taken too long and were hindering investment.
“We will take no more than 30 days. The 12 industrial estates mentioned by the governor, which are currently being processed, will be completed within 30 days at the latest,” Todotua said.
To meet the target, his office will summon the 12 companies developing the industrial estates. The move is intended to clarify outstanding issues and speed up completion of the administrative permitting process.
Todotua said industrial estates were important for attracting investment. They provide certainty over land availability and make it easier for the government to integrate permitting services and infrastructure provision for investors.
He acknowledged that licensing remained a longstanding investment challenge, particularly for large-scale, high-risk projects requiring coordination across ministries and agencies.
The government has therefore established an Investment Desk to coordinate efforts to resolve obstacles faced by investors, including issues involving permits, land and infrastructure readiness.
“We are also working to clear blockages affecting investment plans in the regions,” he said.
Central Java is the fourth region to establish an Investment Desk, following Batam, Bali and North Sumatra. Based at the Central Java Investment and One-Stop Integrated Services Agency (DPMPTSP), the service also covers the Special Region of Yogyakarta and East Java.
The Investment Desk is focused on addressing issues affecting projects worth more than Rp1 trillion.
Central Java prepares 12 new industrial estates
Governor Ahmad Luthfi said faster permitting was urgently needed to ensure the region’s investment potential did not remain at the planning stage.
He said certainty and speed of service were key factors in investors’ decisions on where to commit capital.
Luthfi compared Indonesia’s permitting process with Vietnam’s, which he said was much faster.
“In Vietnam, permits take just two months. Here, two years is considered good,” he said.
To expand the choice of investment locations, the Central Java provincial government is encouraging 12 regencies and cities to prepare sites for new industrial estates. Each is projected to cover at least 50 hectares and must comply with spatial-planning rules.
The estates are expected to become new centres of economic growth, spreading investment beyond areas that have traditionally served as industrial bases.
Alongside land preparation, the provincial government is improving supporting infrastructure. Plans include developing a dry port in Batang, port facilities in Kendal, and revitalising Tanjung Emas Port in Semarang.
Logistics infrastructure is considered essential to facilitating the movement of goods and lowering industrial operating costs. The aim is to offer investors industrial estates that are not only administratively ready but also supported by adequate connectivity.
Investment reaches Rp72.54 trillion through September 2026
The Central Java provincial government is also overseeing several investment plans. These include a garment industry project worth Rp4.6 trillion, due to break ground in December 2026; a Rp2.9 trillion expansion by a Vietnamese company; and a proposed Rp2.17 trillion relocation of a Chinese industry.
According to Central Java DPMPTSP data, investment realisation from January to September 2026 reached Rp72.54 trillion, or 73.21% of the annual target of Rp99.09 trillion.
The investment comprised 82,420 projects and created 340,334 jobs.
In the third quarter of 2026 alone, investment realisation reached Rp24 trillion, up 16.78% on the same period a year earlier. The investment came from 26,431 projects and employed 127,117 people.
Central Java’s economy grew by 5.83% year on year over the same period.
Luthfi welcomed the establishment of the Investment Desk as a way to strengthen coordination between central and regional governments and provide investors with greater certainty.
“The Desk will serve as the central government’s representative in resolving investment problems,” he said.
The Central Java provincial government hopes that faster permitting for the 12 industrial estates and improvements to supporting infrastructure will expand investment opportunities, create jobs and promote more evenly distributed economic growth across the province.