News - Boosting Investment Efficiency, West Java Targets ICOR Reduction to 4.4 by 2030

Boosting Investment Efficiency, West Java Targets ICOR Reduction to 4.4 by 2030

Mar, 04 2026

The West Java Provincial Government has set an ambitious target to improve investment efficiency by reducing its Incremental Capital Output Ratio (ICOR) from the current level of 4.8 to 4.4 by 2030. The reduction of this ratio is considered a key indicator in enhancing the quality and effectiveness of investments within the province.

Head of the West Java Investment and One-Stop Integrated Services Office (DPMPTSP), Dedi Taufik, explained that the current ICOR level of 4.8 already reflects a relatively productive investment climate compared to the national average. This figure indicates that capital inflows into West Java have been effectively translated into economic output.

“However, we are not satisfied with the current achievement. Our goal is to further improve the quality of investment so that it becomes more productive and delivers broader benefits for public welfare,” said Dedi Taufik in Bandung on Monday (March 2).

He noted that the efficiency of investment in West Java has been strongly supported by the province’s economic structure, which is dominated by the manufacturing sector. Industrial areas in Karawang, Bekasi, and Purwakarta serve as major contributors to the province’s Gross Regional Domestic Product (GRDP), supported by strong infrastructure such as toll road connectivity and integrated logistics systems.

To achieve the ICOR target of 4.4 by 2030, the West Java Government plans to strengthen industrial downstreaming strategies and encourage the entry of high-technology-based investments. These efforts are expected to increase industrial value-added while also creating broader employment opportunities for the local workforce.

From a technical perspective, if West Java aims to achieve economic growth of 6 percent with an ICOR of 4.8, the required investment level would range between 28–29 percent of GRDP. However, if the ICOR can be reduced to 4.4, the investment requirement to reach the same growth target would decline to approximately 26–27 percent of GRDP.

“Increasing investment remains the key to strengthening economic capacity and improving people’s purchasing power, especially amid limitations in domestic financing,” Dedi added.

Despite the optimism, the provincial government remains cautious about external challenges that may affect investment realization, including global economic slowdown, geopolitical dynamics, and shifts in global supply chains. Therefore, regulatory reforms and the acceleration of digital-based investment services remain top priorities to maintain investor confidence.

For the West Java Government, achieving the ICOR reduction target is not merely about improving statistical indicators. The ultimate objective is to ensure that every investment entering the region generates maximum economic output and delivers tangible benefits for the people of West Java.

[Source]

Investment must have an impact on reducing unemployment-poverty in West Java

Bandung (ANTARA) - Regional Secretary of West Java Province Herman Suryatman said that investment must be inclusive, which must have a direct impact on society, especially to overcome the problems of unemployment and poverty. "We know that currently West Java, the province with the highest investment in Indonesia, has reached Rp210.6 trillion (investment realization in 2023). Of course we hope that we will continue to maintain this investment, especially not to be exclusive, but inclusive investment, which has a direct impact on reducing unemployment, poverty," Herman said at the Coordination Meeting for the Preparation of the 2024 Strategic Investment Downstreaming Study in West Java Province, Bandung, Thursday. Herman said, one of the strategic steps of the West Java Provincial Government to realize this, namely by downstreaming existing investments in West Java. "One of the strategies in this investment is to downstream strategic investments, one of which is in the oil and gas sector," Herman said. Herman also said that the strategy of downstreaming investment has been implemented since long ago by the central government, and the West Java Provincial Government itself will follow these steps and is committed to being the leading province that carries out downstreaming. "The end is how the people of West Java prosper. Because investment is actually only a target, the main goal is to make our country strong, make West Java strong, advanced, and prosperous," he said. Meanwhile, Expert Staff for Macroeconomics of the Ministry of Investment / BKPM Imam Soejoedi explained the importance of downstream investment so that it could encourage economic growth at the lower levels. "Earlier, Pak Sekda had also conveyed the importance of downstreaming. It needs to be held that not only sustainable investment but investment that can generate economic growth to the lower levels," said Imam. (SOURCE)

Jul, 05 2024

Opening of Purbaleunyi toll gate KM 149-151 accelerated

West Java Regional Secretary Herman Suryatman said the opening of the Purwakarta-Bandung-Cileunyi (Purbaleunyi) KM 149 and 151 toll gates in the Gedebage area, Bandung, will soon be accelerated. "We checked the field the other day with the Coordinating Ministry for Marves and the Ministry of Public Works, and we agreed to accelerate," Herman said in Bandung on Monday. As an acceleration step, Herman explained that he asked the Bandung City Government to conduct a traffic environmental impact assessment (EIA) study related to the opening of the toll gate. He asked that the EIA study be completed within a week, so that the Ministry of Transportation could immediately conduct a study to immediately decide, referring to the EIA results. "Hopefully with this careful study, with a feasibility study (FS) there will be a follow-up. Hopefully it can be accelerated, because our target is not to take long," he said. The road access is known to be strategic because it can be an important access to the GBLA Stadium, Al Jabbar Grand Mosque, Summarecon business and residential areas, to the Whoosh Tegalluar Fast Train Station, and to areas in eastern Bandung. Previously, the West Java Bina Marga Office said that the KM 149 Purbaleunyi toll gate still had to be repaired by involving the PUPR Ministry. Therefore, the KM 149 toll gate will be closed again starting in early 2024, after being functionally opened only during the day. "The target for the repair of exit 149 by the Ministry of PUPR is to complete construction in December 2024 and temporarily operate after a loading test," said Head of the West Java Bina Marga Spatial Planning Office Bambang Tirtoyuliono in the social media of the West Java Bina Marga Office about a month ago. (SOURCE)

Jul, 12 2024

To Boost the Regional Economy, the West Java Chamber of Commerce and Industry (KADIN) Inaugurated an Export School in 2026

RMOLJABAR Not long after being inaugurated, the West Java Chamber of Commerce and Industry (KADIN) management immediately moved quickly to implement its work program. Under the leadership of Chairman Almer Faiq Rusydi, the West Java Chamber of Commerce and Industry officially opened the 2026 West Java KADIN Export School. The opening ceremony of the Export School was held at the West Java KADIN Building on Monday, January 12, 2025. This program is a strategic step by the West Java KADIN to encourage capacity building for regional businesses to penetrate the international market. This activity is implemented through a collaboration between the West Java KADIN, the West Java Provincial Government, and Bank BJB as a supporting partner. The West Java KADIN Export School was officially opened by the West Java KADIN Chairman Almer Faiq Rusydi. This program is an initiative of the Deputy Chairman for Economic and Investment Coordination, Masrura Ram Idjal, and the Deputy Chairman for Export, Import, and International Trade, Muhammad Husein. The program launch was also attended by representatives from the Regional Assistant (Asda), the West Java Manpower and Transmigration Office (Disnakertrans), the West Java Education Office (Disdik), the West Java Department of Public Works and Public Housing (DPMPTSP), Bank BJB, and participants of the West Java Chamber of Commerce and Industry (KADIN) Export School. Almer Faiq Rusydi stated that the Export School is designed as a comprehensive learning platform for businesses, particularly MSMEs, to gain a comprehensive understanding of the export process, from product readiness and regulations to financing and global market access. "It's a comprehensive learning platform for businesses, especially MSMEs, to gain a comprehensive understanding," he said in his remarks on Monday, January 12, 2026. He emphasized that the Export School demonstrates the West Java Chamber of Commerce and Industry's commitment to developing new, competitive and sustainable exporters and encouraging West Java's superior products to penetrate the international market. Almer also hopes that the program will provide tangible benefits for businesses and become a driving force for the West Java economy, in line with the economic growth targets and the vision of Indonesia Emas 2045. "It will provide tangible benefits for businesses and become a driving force for the West Java economy," he explained. He invited all associations and business associations to collaborate with the West Java Provincial Government to realize a Special West Java. The support from the West Java Provincial Government and Bank BJB is expected to strengthen the regional export ecosystem, both in terms of policies, mentoring, and access to financing for businesses. Meanwhile, the Regional Assistant for Economic and Development of West Java Province, Sumasna, stated that export opportunities through Patimban Port are wide open for West Java businesses. According to him, the large available export quota needs to be optimally utilized to drive regional economic growth. He emphasized that the Indonesian Chamber of Commerce and Industry (KADIN) needs to be actively present as a strategic liaison between businesses, the government, and the global market so that Patimban Port's potential can be optimized and have a real impact on increasing the competitiveness and exports of West Java products. "Export opportunities through Patimban Port are wide open for West Java businesses. The large available export quota must be optimally utilized to drive regional economic growth," he said. Through the 2026 West Java Chamber of Commerce and Industry Export School, it is hoped that more new exporters from West Java will be born who are able to increase the added value of local products and contribute to regional and national economic growth. [SOURCE]

Jan, 13 2026

MenPAN-RB Inaugurates Public Service Mall, Regent Nina Agustina: MPP Must Be an Investment Lever.

The commitment of the Indramayu Regency Government (Pemkab) to provide convenience and excellent service for the community to access public services continues. The Indramayu Regency Government is realizing this commitment, one of which is by presenting the Public Service Mall (MPP). The presence of the MPP is also an effort to transform the mentality of the priyai bureaucracy into a serving bureaucracy, as well as serving as a place for integrated licensing services in Indramayu Regency. It is hoped that the existence of the MPP can lead to an increasingly improving investment climate so that the people of Indramayu become more prosperous. This was conveyed by Indramayu Regent Nina Agustina at the joint inauguration activity of the MPP held by the Ministry for Administrative Reform and Bureaucracy (KemenPAN-RB) in Jakarta, Monday (24/6/2024). It is known that the joint inauguration of the MPP was carried out directly by the Minister of PAN-RB, Abdullah Azwar Anas together with regional heads who were present and was attended by 15 regencies/cities, one of which was Indramayu Regency. On the same occasion, Regent Nina together with Plt. Deputy for Public Services KemenPAN-RB, Akik Dwi Suharto Rudolfus also greeted the ASN who served in the MPP and expressed his appreciation for the commitment of all stakeholders in Indramayu Regency in providing services and invited them to continue to be consistent in providing ease and speed of access to public services for the community so that implementation existing services can be better. "Thank you all, super great team, since it was launched on December 28 2023 and today we have been inaugurated, God willing, we will provide the best service for the best and fastest community. Hopefully everything will be even better, Indramayu will be dignified," he said . Meanwhile, the Minister of PAN-RB, Abdullah Azwar Anas, in his speech expressed his appreciation on behalf of the government to regional heads who were present in person as well as the entire community and SKPD who were present online at the inauguration of the MPP. According to him, it is time for the government to provide optimal public services, because public services are the core of government so that the peak of bureaucratic activity is public services. The implementation of MPP is one of the government's strategies in an effort to continuously improve the quality of public services, because the integration of all services, both vertical, BUMN, BUMD and private agencies as well as regional agencies aims to provide services that are fast, easy, affordable, safe and comfortable for the community. Therefore, Anas also hopes that regional heads can conduct regular surveys to measure the level of community satisfaction with the services provided. He even assigned deputies and assistant deputies for public services to carry out surveys and directly check conditions in the field to see whether public service indicators were working or not. Because Anas said, when he checked in the field, there were several MPPs that were inaugurated online and had not implemented the provisions as required for the operation of the MPP. Thus, Anas emphasized that if a similar incident were encountered again, he would be grounded or reduce his status to no longer be included in the MPP category but simply become a one-stop service. However, with the inauguration of 15 MPPs on this occasion, the Minister of PAN-RB hopes that all regional heads and their staff can carry out their duties and public service indicators so that the presence of these MPPs can have an impact on bureaucracy and increase public satisfaction with public services. Source

Jun, 25 2024

BP Taskin: Kuningan is an example of green investment that empowers the poor

Jakarta (ANTARA) - Head of the Poverty Eradication Agency (BP Taskin) Budiman Sudjatmiko named Kuningan Regency, West Java, as one of the regions that has successfully empowered the poor through green investment. According to him, although Kuningan Regency has the second-highest poverty rate in West Java, the region has received recognition from the Ministry of Agrarian Affairs and Spatial Planning/National Land Agency (ATR/BPN) for having the lowest rate of land conversion from agricultural to non-agricultural use. "This is a paradox: while the community has not been lifted out of poverty, the environment has been saved, and that is actually what is interesting. The Regent of Kuningan has a vision of only accepting green investment, investment that does not damage the environment and is very minimal, so that investment is only in food and must be green. That is an interesting finding," he said in a discussion in Jakarta on Wednesday night. He cited several examples of investments that Kuningan Regency could utilize, such as carbon trading, organic farming, or other investments that do not damage the environment while still utilizing technology. Budiman also said that, on average, regional heads who had held hearings with BP Taskin had succeeded in moving away from the paradigm of alleviating poverty by reducing the burden of expenditure on the poor through direct cash assistance (BLT). This does not mean that BLT has been eliminated, but rather that they have realized that BLT is not enough, he said. They have accepted the approach offered, which is to promote industrialization that liberates the poor. “So the approach is no longer affirmation, advocacy, or protection through BLT, social assistance, and so on, but rather they agree with our approach, industrialization that liberates the poor,” he said. He emphasized that BP Taskin has been offering an approach to poverty alleviation through data by name and address, investment, and collaboration. They agreed that poverty alleviation means encouraging investment with the aim of getting the poor to work or become entrepreneurs, not investment that simply displaces people or damages the environment. “But there are conditions, namely that poor areas must receive investment capital, or the poor must work and become part of the business chain,” he explained. Then, the next investment condition being promoted by BP Taskin is poverty alleviation through inclusive growth, which empowers the poor to work together to collaborate in order to escape poverty. “The approach BP Taskin will take, which we call poverty alleviation through inclusive growth, means growing through inclusive economic activities together,” he said. [SOURCE]

Nov, 03 2025

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