News - Bank Indonesia West Java Encourages Economic Growth Through Investment and New Economy

Bank Indonesia West Java Encourages Economic Growth Through Investment and New Economy

Oct, 07 2024

TRIBUNJABAR.ID, BANDUNG - Global geopolitical challenges and declining purchasing power are the main concerns by encouraging the investment, export and digitalization sectors. Bank Indonesia is optimistic that West Java's economic growth will still meet the target in the range of 4.6 percent to 5.4% in 2024.

Deputy Head of the West Java Bank Indonesia Representative Office, Muslimin Anwar, said that West Java's economic growth in the second quarter of 2024 was recorded as growing at 4.95% (year on year/yoy), higher than the previous quarter which grew at 4.93% (yoy).

This growth was driven by increased domestic consumption, improved export activity and increased investment. Sectors that contribute greatly to economic growth include the agricultural sector, processing industry, transportation, warehousing and trade.

"West Java's economy is expected to continue to grow positively in the range of 4.6% to 5.4%, driven by strong domestic demand, increased community mobility, and infrastructure support that continues to develop," said Anwar, at the Road to West Java event Journalist Competition, Friday (4/10/2024)

Anwar explained that there are several challenges that must be anticipated, including global uncertainty which has an impact on export demand, as well as potential disruption in the agricultural sector due to the El Nino phenomenon.

However, Bank Indonesia is optimistic that the policies implemented, such as industrial downstreaming and accelerated digitalization, will have a positive impact on the West Java economy.

One positive indicator of the West Java economy is controlled inflation. Until September 2024, West Java recorded inflation of 2.09% (yoy). West Java's annual inflation target of 2.5% is still on track.

"Bank Indonesia will continue to strengthen synergies with various parties to maintain economic stability and support sustainable growth in West Java, one of which is maximizing the role of the TPID (regional inflation control team)," he said. Anwar explained that digitalization and infrastructure are also the keys to encouraging West Java's economy to continue to grow and develop.

“Digitalization has created great opportunities for economic growth. "Currently, West Java has the most QRIS users nationally, which shows that digital transformation is underway," he said.

In August 2024, there will be more than 11 million QRIS users in West Java. Meanwhile, the number of registered merchants reached 7.3 million, the majority of which came from micro businesses. He added that digitalization of payments not only encourages transaction efficiency, but also empowers micro and small businesses.

The political year 2024, said Anwar, will also encourage an increase in domestic consumption driven by political activities. It is hoped that the momentum of the election will be able to support people's purchasing power, as well as strengthen the optimism of business actors after the election. "New economic development in the tourism, agricultural and other sectors is one way to face future global challenges," he said.

Meanwhile, academic from the Faculty of Economics and Business (FEB) at Padjadjaran University (Unpad) Ari Tjahajawandita said that synergy between parties is one of the keys so that the West Java economy can continue to grow to face various challenges in the future.

Ari proposed that the government can encourage and stabilize the economic sector which is already growing. Second, the government must improve the economic sector which is currently sluggish. "So what came down was to boost West Java's economic growth," said Ari.

(SOURCE)

Investment in Indonesia in Q4 2024 Reaches IDR 452.8 Trillion, Absorbs 580 Thousand Workers

STOCKWATCH.ID (JAKARTA) - Investment realization in Indonesia in the fourth quarter of 2024 recorded impressive results. Rosan Perkasa Roeslani, Minister of Investment and Downstream/Head of BKPM RI revealed that investment for the October-December 2024 period reached IDR542.8 trillion. This figure grew quarterly (QoQ) and increased significantly by 23.8% compared to the previous year (YoY). This achievement is equivalent to 27.4% of the President's investment target of IDR1,650 trillion and 36.5% of the Strategic Plan (Renstra) target of IDR1,239.3 trillion. In addition to investment growth. The most encouraging thing is the absorption of labor which has also increased. "Workforce absorption is our main priority. In the fourth quarter of 2024, as many as 580,916 people got jobs thanks to incoming investment. This figure grew 26.9% compared to the previous year," said Rosan, in Jakarta, Friday (1/31/2025) In terms of investment sources, both Foreign Investment (PMA) and Domestic Investment (PMDN) both experienced an increase. PMA was recorded as contributing IDR245.8 trillion or 54.3% of total investment, growing 33.3% annually. Meanwhile, PMDN contributed IDR207 trillion or 45.7%, up 14.1%. The investment trend has also begun to shift outside Java. In the fourth quarter of 2024, 57.5% of investment flowed outside Java with a value of IDR260.4 trillion, a sharp increase of 40.8% YoY. Meanwhile, investment in Java amounted to IDR192.4 trillion or 42.5%, growing 6.4%. In terms of regions, the five regions with the largest investments are West Java IDR 66.2 trillion (14.6%), Jakarta IDR 50.1 trillion (11.1%), Central Sulawesi IDR 41.3 trillion (9.1%), East Java IDR 35.9 trillion (7.9%), and South Sumatra IDR 30.5 trillion (6.7%). The sectors that attract the most investors are the basic metal and metal goods industry IDR 60.4 trillion (13.3%), followed by mining IDR 52.2 trillion (11.5%), transportation, warehousing, and telecommunications IDR 42.7 trillion (9.4%), food industry IDR 34.5 trillion (7.6%), and other services IDR 34.2 trillion (7.6%). In terms of country of origin, Singapore remains the largest investor with a total investment of US$ 5.7 billion, followed by China US$ 2.3 billion, Hong Kong US$ 2.2 billion. Malaysia US$ 1.5 billion, and Japan US$ 0.9 billion. "Everything is from Asia if you look at investments in the fourth quarter of 2024," said Rosan. (SOURCE)

Mar, 14 2025

Minister of Investment is Committed to Equal Distribution of Investment in Eastern Indonesia

Jakarta (ANTARA) - Minister of Investment/Head of the Investment Coordinating Board (BKPM) Rosan Roeslani is committed to continuing to distribute quality and sustainable investment in the Eastern Indonesia region. "The point is why we give more special appreciation to Eastern Indonesia, because if you look at the distribution of investment, previously investment was more concentrated in Java, then Sumatra, Kalimantan and Sulawesi. We want to give special attention to the Eastern part, so that "They can also attract quality and sustainable investment," said Rosan at the 2024 Investment Services Award press conference in Jakarta, Monday. In the 2024 Investment Service Award event which was held in Jakarta on Monday, the winners of the 2024 Investment Service Award for the Special Category for Eastern Indonesia were won by the Ambon City Government, the Merauke Regency Government and the Papua Provincial Government. Rosan said that the 2024 Investment Services Award was an event that always received attention from the international world. "So that's also what we want to convey, that equality is important for us. That's why we are paying special attention to Eastern Indonesia," he said. On the same occasion, Deputy Minister of Investment/Deputy Head of BKPM Yuliot said that the investment potential in Eastern Indonesia was extraordinary. Natural resources are generally found in Eastern Indonesia, and in general the potential for Eastern Indonesia is quite large. "So we are encouraging regions in Eastern Indonesia to be given opportunities. If we make existing standards, for example Eastern Indonesia and Java Island, then of course in terms of services and existing infrastructure, there is a gap between Eastern Indonesia and Western Indonesia. Of course "We see that with our special categorization, this encourages Eastern Indonesia to provide better services to investors," said Yuliot. For the sectors currently being pursued is downstreaming, in fact many investments related to downstreaming are located in Eastern Indonesia. "We see in Morowali, in the North Maluku region, in Papua, there are a lot of large-scale investment activities flowing and having a tremendous impact on our economy," said Yuliot. (SOURCE)

Oct, 01 2024

DPMPTSP Bandung City: Encouraging Investment and Simplifying Licensing

The Bandung City Investment and Integrated Services Agency (DPMPTSP) has reaffirmed its commitment to encouraging investment and simplifying licensing services in Bandung City. This was conveyed during the Sonata Talkshow event on Thursday, August 21, 2025, which featured the Secretary of the DPMPTSP of Bandung City, Anton Sugiana, and the Coordinator of Information Systems, Data, and Complaint Information Services, Hadi Surachman. Anton Sugiana emphasized the importance of improving the investment climate as an effort to support economic growth in Bandung City. In 2025, DPMPTSP targets investment realization to reach IDR 7.3 trillion, with the hope of driving the city's economic growth by more than 6 percent. “We are offering various strategic projects to investors, one of which is the Public Street Lighting (PJU) program, which not only improves public safety and comfort but also opens up new investment opportunities that will have an impact on employment,” said Anton. In addition, Anton also announced plans for major events such as the Bandung Investment Talk and Investment Roadshow in October, as well as the Bandung Investment Summit in November. “These forums are expected to bring together the government, business actors, banks, and investors to strengthen collaboration and accelerate inclusive development in the city of Bandung,” he explained. Meanwhile, Hadi Surachman highlighted the digital service innovations that have been developed by DPMPTSP to simplify licensing. Currently, the public can access services through the official website and the Gampil application, which is available on the App Store and Play Store. “Business actors and professionals can apply for various permits, ranging from doctor and nurse practice permits to other business permits, simply through their gadgets. We are also integrated with the national system,” explained Hadi. With this digitalization, the licensing process in Bandung City has become faster, more transparent, and accessible at any time, providing convenience for both the community and potential investors. Through various innovations and investment forums to be held, the DPMPTSP of Bandung City is optimistic about attracting the interest of both domestic and foreign investors. “We want to invite all parties to invest in Bandung City, as every investment that comes in not only builds infrastructure but also creates job opportunities and improves the welfare of the community,” he concluded. [SOURCE]

Dec, 02 2025

West Java Relies on Factory Investment Tax, West Java Governor Dedi Mulyadi: The Smell is Here, Gets the Money from Jakarta

RADAR BOGOR - West Java Governor, Dedi Mulyadi, admitted that he needed large funds for development sourced from taxes. "There must be rationalization, how we want to build roads, want to build bridges, want to build irrigation, want to build educational facilities, want to build health facilities must use money, where does the money come from?," said Dedi Mulyadi. "What is the source of income for West Java (Jabar) going to rely on? We don't have coal, we don't have gold mines like in other places," continued the former Purwakarta Regent. He further said that the largest income that West Java earns is from factory or industrial investment taxes. Although, said Dedi Mulyadi, there must be governance that must be improved by the central government. "What is the governance? The factory is in Karawang, the factory is in Bekasi, the factory is in Subang, the factory is in Purwakarta, the factory is in Bogor but the PPh 21 falls to the DKI Jakarta Regional Government," said Dedi Mulyadi. "The management of that has to be fixed, why? Because the Tax Office calculates it from its head office," he said. "The smell is here, the money is from Jakarta," continued Dedi Mulyadi. But behind that, he said, if the industry is a chicken, then if you want to have eggs, the formula is to take care of the chicken until it is fat. "It means that we maintain the investment together, do not disturb it," he said. According to him, when the release is not disturbed, when the industry is built, do not disturb it, when the workforce is recruited. Dedi Mulyadi emphasized that the West Java Provincial Government is here to provide guarantees of investment, security, recruitment, adequate resources with guaranteed infrastructure. Dedi Mulyadi admitted that he had started collecting data. "Hey, what do you need for your factory? Roads, I budget for it, what do you need for water? I prepare it, we build connectivity for the water. Although it's a bit difficult, we are here to provide them with a guarantee," he explained. "For what? To compete with Vietnam, China so that they are comfortable, if they are comfortable there will be recruitment," he explained. Dedi Mulyadi further explained that entrepreneurs who build industries will have laborers in the factory, after that the materials absorbed will also be money. "If entrepreneurs feel protected, then we don't need to talk, they also understand what we want," he concluded. (*) [SOURCE]

Mar, 21 2025

Dedi Mulyadi, Operation Manunggal Expected to Protect West Java's Investment Climate from Mass Organization Disturbances

PIKIRAN RAKYAT - After being inaugurated along with hundreds of regional heads elected in the 2024 Regional Head Elections (Pilkada), the Governor of West Java (Jabar) Dedi Mulyadi immediately stepped on the gas. Dedi immediately issued a policy called Operation Jabar Manunggal to maintain the investment climate in West Java. Through the ifi operation, it is hoped that it can overcome the disturbances of community organizations (ormas) which have been widely complained about. "We read the phenomenon of certain mass organizations disrupting investment. We are preparing funding to protect entrepreneurs, to prepare security costs with the term Operation Jabar Manunggal," he said at the Presidential Palace complex, Jakarta, Thursday, February 20, 2025 after the inauguration. He admitted to paying special attention to the investment climate in West Java, which is said to often face disruptions from certain mass organizations. The disruptions felt include illegal levies in the land acquisition process, labor recruitment, to waste management. "We encourage companies to be assisted so that they are not disturbed by certain mass organizations, from land acquisition, asking for development quotas, asking for quotas when recruiting workers, asking for waste production quotas during production. This often becomes a conflict in the industrial area of West Java,' he said as reported by Antara. With the implementation of Operation Jabar Manunggal, the former Purwakarta Regent hopes that it can add a positive direction to the investment climate in West Java. Later, the 2025 West Java Regional Original Income (PAD) can increase. In 2025, West Java's PAD is targeted to increase from IDR 19 trillion to IDR 21 trillion, with total regional spending reaching IDR 33 trillion. Furthermore, regencies/cities in West Java are certain to receive an allocation of IDR 6 trillion. The allocation will be used entirely to build road infrastructure. In general, he hopes that all levels of West Java society can feel the positive benefits of every policy made. The quality of education, health, infrastructure, and the creation of a conducive and safe investment climate are West Java's new hopes. [SOURCE]

Mar, 18 2025

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