RADARBANDUNG.id – Deputy Speaker of the West Java Regional People's Representative Council (DPRD), MQ Iswara, expressed his appreciation for the West Java Provincial Government's (Pemprov) performance, which he believes has maintained economic optimism amidst declining regional revenues in 2025.

 

According to him, although West Java Province experienced a Rp 5.9 trillion decline in revenue due to the implementation of the Law on Financial Relations between the Central and Regional Governments (HKPD), investment realization in the West Java region has shown a very positive trend.

 

"We welcome this achievement. Amidst declining regional revenues and a reduction in transfer funds of Rp 2.45 trillion, investment realization is actually encouraging," Iswara said in Bandung on Monday (October 20).

 

Based on data he received, total investment realization in West Java through the third quarter of 2025 reached Rp 77.1 trillion. Iswara believes this achievement is crucial for maintaining West Java's economic stability amid declining regional revenues.

 

"God willing, by the end of the year, the realization will be even higher. This is certainly the result of the performance of the Governor and the West Java Provincial Government, who have created a conducive business climate, guaranteed legal certainty, and an increasingly favorable investment climate," he said.

 

"We hope that, amidst declining regional revenues, this investment can become a larger source of development financing," he continued.

 

He added that West Java remains the largest recipient of transfer funds nationally, while also recording 16.7 percent growth in Foreign Direct Investment (PMA) in the third quarter. However, he believes special attention is needed because the portion of Domestic Direct Investment (PMDN) is currently larger than that of PMA.

 

"This must be closely monitored by the DPMPTSP. This means efforts to attract foreign investment must be even more active. Currently, most of it comes from Singapore and Hong Kong, but in the future, this can be increased to include Japan, South Korea, and European countries with which Indonesia has good relations," Iswara said.

 

Furthermore, he hopes this investment growth will have a direct impact on improving public welfare. "We hope this increase in investment will be directly proportional to the creation of new jobs and improved community welfare, especially around industrial areas," he said.

 

Previously, the West Java Provincial Government received praise from the Ministry of Investment and Downstream Development/Head of the Investment Coordinating Board (BKPM) for successfully ranking first as the region with the highest investment realization in the third quarter of 2025. Jakarta was in second place, followed by Central Sulawesi, Banten, and East Java in the top five.

 

Total national investment realization in the third quarter reached IDR 491.4 trillion. Of that amount, investment value in West Java reached IDR 77.1 trillion, or approximately 15.7 percent of the national total.

 

The total investment value reached IDR 77.13 trillion, an increase of 36.34% compared to IDR 56.57 trillion in the same period the previous year. The Head of the West Java Provincial Investment and Investment Development Agency (DPMPTSP), Dedi Taufik, stated that this achievement demonstrates West Java's continued strong attractiveness as an investment destination, both for domestic and foreign investment.

 

"Investor confidence in West Java remains high. A conducive business climate, infrastructure support, and accelerated licensing services continue to be key factors maintaining this positive momentum," said Dedi Taufik.

 

Of the total investment value in the third quarter of 2025, domestic direct investment (PMDN) contributed approximately IDR 41.8 trillion, while foreign direct investment (PMA) was recorded at USD 2.2 billion, equivalent to IDR 35.3 trillion. The value of PMDN investment increased sharply by 74.33%, from IDR 23.97 trillion in the third quarter of 2024 to IDR 41.78 trillion in the same period in 2025.

 

The value of foreign direct investment (PMA) in the third quarter of 2025 reached USD 2.21 billion, equivalent to IDR 35.35 trillion, an increase of 8.42% compared to IDR 32.60 trillion in 2024. Foreign investment in West Java primarily comes from Japan, Singapore, and Hong Kong, with a focus on the manufacturing industry, information and communications, trade, and real estate sectors.

 

[SOURCE]