Strategy for Central Java to Boost Regional Original Income through SOEs and Attract Local Investment

The Governor of Central Java, Ahmad Luthfi, has confirmed the province’s readiness to support the development of new economic drivers established by the central government. This includes supporting President Prabowo Subianto’s flagship programme, the Red and White Fisherman Village Project.

Ahmad Luthfi stated that the provincial government, in collaboration with district and city governments, is working with the central government to ensure the readiness of coastal areas. Key initiatives include the ‘fish-eating promotion’ programme and the enhancement of supporting infrastructure, such as 3,100 cold storage units, which will be integrated with the SPPG and Red and White Village Cooperatives.

Furthermore, Central Java is focused on increasing food production to improve the welfare of farmers, with a target of 9.7 million tonnes of paddy production by 2025.

In tandem with economic growth, the province aims to reduce poverty rates by addressing basic needs in the ten poorest regencies. This programme involves the construction of 285,000 decent houses for low-income communities in 2025, educational programmes for underprivileged children, and the creation of employment opportunities for the poor.

Amidst fiscal pressures and reductions in regional transfer funds, Central Java is striving to increase its Regional Original Income (PAD) by rehabilitating regional-owned enterprises (BUMD) to drive local revenue. Additionally, the province seeks to boost regional investment through an agglomeration hub designed to develop new economic sectors.