Streamlined Licensing and Comprehensive Facilities Prove Attractive, Businesses Firmly Invest in Central Java

SEMARANG — Central Java is considered increasingly attractive for business actors to develop investments. This is not only due to market potential and workforce availability, but also because of the ease of the licensing process and assistance from the local government. Unsurprisingly, the investment realisation process is proceeding more quickly.

This emerged during the Governor’s Business Dinner with Economic Stakeholders across Central Java at the Padma Hotel, Semarang City, on Tuesday, 30 June 2026. Several attending business actors shared their experiences in realising investments in Central Java, while also appreciating the support from the Central Java Provincial Government in overseeing business processes in the region.

A representative from PT Global Dairy Bersama (GDB), Ihsan Mulia Putri, was one of the business actors who directly experienced this ease. The company, which will build the largest dairy cattle farm in Indonesia, specifically in Brebes Regency, stated that the entire licensing process ran smoothly thanks to facilitation from the government. “We are committed to investing in a dairy cattle farm in Brebes Regency, which will become the largest in Indonesia with 30,000 cows. We extend our deepest gratitude because the permits have been facilitated smoothly and quickly,” she said. According to Ihsan, dairy farm investment involves a complex process as it encompasses many aspects. However, assistance from the Central Java Provincial Government ensured that various stages were passed successfully. “We are very grateful to have chosen Central Java as the location, so everything went smoothly. The groundbreaking for the farm construction will begin on 20 July 2026,” she stated.

Not only in the livestock sector, the ease of investing was also felt by the manufacturing industry. Director of PT Bintang Indokarya Gemilang, Budiarto, said that the development of the footwear industry in Central Java continues to show a positive trend. “Shoe factories in Central Java are continuously growing. Earlier, hearing the Governor’s great enthusiasm made us equally enthusiastic about continuing to develop our business in Central Java,” he said. He affirmed his company’s commitment to continuously expanding the business while creating more job opportunities for the people of Central Java. Support from the business ecosystem, including from the banking sector, was also considered helpful for industrial growth. “We want to continue creating jobs in Central Java. I also thank Bank Jateng for its continuous support of the footwear industry,” he stated.

Meanwhile, the Executive Director of PT Kawasan Industri Kendal (KIK), Juliani Kusumaningrum, assessed that support from the Central Java Provincial Government is a crucial factor in accelerating investment in the industrial estate. According to her, the coordination carried out by the local government, including through the Regional Council led directly by the Governor of Central Java, helps meet and resolve various investor needs. “With the support from the Central Java Government, all the processes we need are accelerated,” she said.

Nevertheless, business actors also conveyed several challenges requiring attention, one of which relates to the adjustment of the risk-based licensing system, or OSS, following the issuance of new regulations. Juliani explained that the problem faced is not the licensing process itself, but rather the system integration, which is still experiencing issues. “The problem is not with the licensing. All permits are complete and finished, but the system cannot upload. As a result, some business actors are hindered in dispatching goods,” she explained. A similar point was raised by a representative from Korrun Group, Suartin Huang. She mentioned that one of its investments in Grobogan Regency has the potential to absorb thousands of workers. However, this is still awaiting the resolution of administrative aspects related to land and licensing. “We have one development site in Grobogan Regency covering approximately 32 hectares, with a projected workforce absorption of around 7,000 employees. We are currently awaiting the determination,” she said.

Responding to these various inputs, the Governor of Central Java, Komjen Pol (P) Drs. Ahmad Luthfi, S.H., S.St.M.K., assured that the Central Java Provincial Government will move quickly to help resolve the obstacles faced by investors in the region. Regarding the OSS issue, he requested his staff immediately conduct checks and provide direct assistance to business actors. “We will check the OSS, including other OSS systems. I do not want investment to be disrupted due to administrative issues,” he stressed. Meanwhile, regarding the investment in Grobogan, the Governor emphasised that the government continues to encourage incoming investment while ensuring that development does not reduce agricultural areas that support Central Java’s food security. He requested that the land issue for the investment in Grobogan be communicated immediately and a solution found together in accordance with applicable regulations.

The Head of the Investment and One-Stop Integrated Services Agency (DPMPTSP) of Central Java Province, Sakina Rosellasari, added that her agency is ready to facilitate business actors experiencing issues with updating the OSS system due to regulatory changes. She said the emerging obstacles are case-by-case, thus requiring direct assistance. “Please recapitulate them. We will facilitate them later. We have also communicated with the Ministry of Investment and Downstreaming to help resolve the emerging obstacles,” she explained.