The Central Java Regional Government got an investment commitment of US$2.78 billion from the holding of the 2019 Central Java Investment Business Forum held in Jakarta on Tuesday (5/11) - Photo: Privacy

JAKARTA (TheInsiderStories) – The Central Java Regional Government got an investment commitment of US$2.78 billion from the holding of the 2019 Central Java Investment Business Forum (CJIBF) held in Jakarta on Tuesday (5/11). It consisting of Rp25.2 trillion ($1.78 billion) from domestic investors and $1 billion by foreign investors.

Ratna Kawuri, Central Java’ Head of Investment and One-stop Integrated Services, said the investment commitments were spread in 18 districts and cities in the province after the government netted 33 investors through online registration before CJIBF took place.

“After CJIBF there will be a one on one meeting, so it is possible that the value of the investment commitment will be higher,” Kawuri said in a written statement, adding that there was three Letter of Intent (LEI) signing which represented 33 investment interests in CJIBF.

Kawuri explained the letters are investment commitments of PT Handal Sukses Karya from the textile sector in the form of a footwear factory. The company’s investment will be realized in Pati Regency worth Rp2 trillion.

Furthermore, Japan’s Akuo Energy’s unit PT Akuo Energy Indonesia, which plans to build a wind power plant in Brebes. The total investment that will be prepared by the company reaches Rp2 trillion.

Then, PT Taman Safari Indonesia is committed to developing the tourism sector in Batang. The investment value for tourism development reaches Rp200 billion.

Meanwhile, Central Java Governor Ganjar Pranowo said the province he leads will gain demographic bonuses earlier than other regions, thus requiring huge investments to accommodate the excess workforce.

Pranowo is targeting investment in Central Java this year to be set at Rp47.42 trillion.

“We are optimistic to be able to meet the target because we have competitiveness in terms of potential, infrastructure support, manpower, as well as having a strong commitment to encourage increased investment through pro-investment policies,” he said.

Pranowo explained the total investment from 2015 until the second quarter of 2019 reached Rp211.19 trillion. It consisted of foreign investment of Rp110.85 trillion, spread over 4,964 projects, and absorbed 335,735 workers. The remaining Rp100.34 trillion came from domestic investment, disbursed 7,121 projects, and absorb 221,071 workers.

The investments entering Central Java, he went on, mostly flowed into the electricity, gas and water, transportation, warehouse, telecommunications, and textile industry. Then the favorite area is Jepara, Batang, and Cilacap Regency.

Bahlil Lahadalia, Head of the Investment Coordinating Board, said that licensing services in Central Java were relatively better than other provinces. This made Central Java be the favorite province for investment.

Lahadalia asked the regional government to continue to collaborate with the central government to increase investment. This is also in line with President Joko Widodo’s message asking the government to be proactive in capturing investment opportunities from the United States and China trade war.

He said as many as 59 investors and entrepreneurs from China from the wood and furniture industry sector would relocate their factories to Indonesia with Central Java will be the favorite place.

He noted the local government was one of the most instrumental parties in bringing in investors. Therefore, he asked the ranks of local governments to help totally all investors who enter their territory.

“The key is we help investors from beginning to end. All must go to the field,” he said in a written statement, stressing one of the factors driving investors to move to Central Java is the best licensing system and pro-investment policies.

US$1=Rp14,100

Written by Lexy Nantu, Email: lexy@theinsiderstories.com