News - Rp42.63 Trillion Flows to the West Java-Central Java Border

Rp42.63 Trillion Flows to the West Java-Central Java Border

Jul, 29 2026

Bisnis.com, KUNINGAN — Realized investment across the 10 regencies and cities belonging to Kunci Bersama reached Rp42.63 trillion from the first quarter of 2024 through the second quarter of 2026. This figure is seen as highlighting strong investor interest in the West Java–Central Java border area.

However, behind this tens-of-trillions figure, a fundamental question remains: to what extent has this investment created jobs, driven economic growth, and improved public welfare?

Coordinating Minister for Infrastructure and Regional Development Agus Harimurti Yudhoyono (AHY) stated that this achievement serves as an indicator that the economic corridor, comprising Kuningan, Cirebon, Indramayu, Majalengka, Ciamis, Pangandaran, Cilacap, and Brebes Regencies, along with Cirebon and Banjar Cities is emerging as a new investment destination.

"This corridor of 10 regencies and cities is growing significantly. It proves that Kunci Bersama is a new investment epicenter that is attractive to investors," AHY said on Tuesday (July 28, 2026).

Even so, the Rp42.63 trillion investment value does not fully reflect the quality of the region's economic growth.

The published data has not yet included details regarding the number of realized projects, the breakdown between Foreign Direct Investment (FDI) and Domestic Direct Investment (DDI), the business sectors dominating investment, or the number of workers absorbed.

The absence of this data leaves the high investment figure unable to be directly linked to tangible economic benefits felt by the public.

In economic measurement, investment is a vital indicator, but its success can only be truly evaluated when it generates production activity, creates jobs, raises household incomes, and strengthens regional economic growth.

The ten member regions of Kunci Bersama possess distinct economic characteristics. Majalengka, for example, features Kertajati International Airport as a strategic infrastructure asset, while Indramayu is recognized as an energy and agricultural hub.

Cirebon Regency has an industrial and trade base, whereas Pangandaran relies on the tourism sector.

Without region-by-region data, it is difficult to measure whether investment is evenly distributed or concentrated in specific areas.

Minister AHY assessed that the development of border regions must be viewed as part of the national development strategy.

According to him, inter-governmental synergy is essential so that investment can deliver a broader impact.

"We must view regional development within the big picture of national development. Synergy is key to ensuring development is carried out in an integrated manner and delivers maximum impact for the public," AHY said.

AHY noted that the government is orchestrating various technical ministries to accelerate regional development by strengthening infrastructure, food security, water security, clean energy development, the 3 million housing construction program, and the optimization of Kertajati International Airport as a new hub for economic growth.

However, this agenda still requires more measurable indicators to evaluate its success. Beyond investment figures, the government needs to demonstrate its contribution to Gross Regional Domestic Product (GRDP) growth, increased business sector productivity, and job creation in each area.

Head of the Kunci Bersama Secretariat, who is also the Regent of Kuningan, Dian Rachmat Yanuar, said that investment should not only be defined as capital inflow, but also as a sign of investor trust in a region.

"Trust is born when the government is able to deliver certainty, convenience, and commitment toward sustainable development," Dian said.

According to him, the Kunci Bersama area holds immense potential, supported by a population of nearly 14 million people and strengths in modern agriculture, agribusiness, manufacturing, marine affairs, fisheries, livestock, tourism, and carbon trading.

This potential, according to Dian, needs to be translated into productive and sustainable investment. Therefore, Kunci Bersama proposes that the region be designated as a National Investment Desk to accelerate equitable investment across the West Java–Central Java border region.

For economic players, the ultimate measure of investment success does not stop at the amount of capital coming in. "What matters more is how much that investment can create jobs, increase production capacity, expand local business activity, and drive more equitable economic growth," Dian said.

[Source]

Bahlil Announces 13 Additional Downstream Projects Worth Rp239 Trillion

Minister of Energy and Mineral Resources, Bahlil Lahadalia, announced that the government is preparing 13 additional downstream (value-added) projects with a total investment value of approximately Rp239 trillion. The announcement was made after attending a limited meeting with President Prabowo Subianto in Hambalang, West Java, on Wednesday (March 25, 2026). According to Bahlil, these additional projects complement the previously announced 20 first-phase downstream projects, some of which have already entered the groundbreaking stage, while others are scheduled to begin soon. “We are adding 13 more downstream projects with a total investment of around Rp239 trillion, which are currently being finalized,” Bahlil stated. Acceleration of Alternative Energy Development During the meeting, the government also discussed accelerating the development of alternative energy sources. President Prabowo instructed that all potential energy sources, including biofuels and renewable energy, should be developed more rapidly. This includes initiatives such as bioethanol production, biodiesel from crude palm oil (CPO), and broader efforts to accelerate the energy transition. Initial Downstream Projects Previously, Indonesia’s sovereign investment agency, BPI Danantara, conducted groundbreaking ceremonies for several early-stage downstream projects in the energy sector, including: Aluminum smelter and alumina refinery (SGAR) in Mempawah, West Kalimantan Bioavtur refinery in Cilacap, Central Java, with a capacity of around 6,000 barrels per day Bioethanol plant in Glenmore, Banyuwangi, with a capacity of 30,000 kiloliters per year Integrated poultry farming projects across multiple regions with expansion plans up to 30 locations Salt processing and MVR facilities in Gresik and Madura with a capacity of up to 200,000 tons per year National Priority Downstream Projects In total, the government has identified 18 priority downstream and energy resilience projects with a combined investment value of approximately US$38.63 billion (Rp640.4 trillion). These projects span multiple strategic sectors, including: Mining and minerals (minerba): aluminum smelters, coal-to-DME, stainless steel, and copper processing Agriculture: oleoresin, oleofood, and coconut-based industries Marine and fisheries: salt processing, fish fillet, and carrageenan production Energy security: oil refineries and storage infrastructure Energy transition: integrated solar modules and bioavtur from used cooking oil The projects are distributed across various regions in Indonesia, including Kalimantan, Java, Sumatra, Sulawesi, Nusa Tenggara, and Papua. National Downstream Strategy This downstream development program is part of the government’s broader strategy to increase the value-added of natural resources, strengthen energy security, and accelerate domestic industrial growth. With the addition of these 13 new projects, the government aims to further accelerate Indonesia’s economic transformation toward a more industrialized and sustainable economy. [Source]

Mar, 26 2026

West Java at the Top of National Investment, New Hope for Job Opportunities for Residents

West Java has once again captured national attention. Amidst a global economic downturn that hasn't fully stabilized, Indonesia's most populous province has emerged as a major driver of national investment. West Java Governor Dedi Mulyadi announced this encouraging news via his personal Instagram account on Tuesday (January 20, 2026). In a video delivered in a relaxed yet confident manner, Dedi announced that West Java officially ranked first in Indonesia for the highest investment realization throughout 2025. "Good morning to all the people of West Java, wherever you are. I would like to thank all levels of society, from the heads of neighborhood associations (RT), community associations (RW), hamlet heads, village heads, village heads, village heads, sub-district heads, regents and mayors, to the ranks of the Investment Coordinating Board (BKPM). Thank you for safeguarding investment in West Java," said Dedi. This appreciation is not without basis. Throughout 2025, total investment realization in West Java reached IDR 296.8 trillion, or 15.4 percent of total national investment. This achievement places West Java ahead of Jakarta, long known as the epicenter of the Indonesian economy. Not only does West Java excel overall, it also recorded significant achievements in the Foreign Direct Investment (FDI) sector. This province is a primary destination for foreign investors, with investment reaching USD 9.2 billion, or 16.3 percent of the total national FDI. This figure surpasses Jakarta, which ranks third with USD 6.0 billion, or 10.6 percent. Meanwhile, in terms of Domestic Direct Investment (PMDN), West Java ranks second nationally with a value of IDR 148.8 trillion, or 14.5 percent. DKI Jakarta still holds first place with PMDN realization of IDR 176.3 trillion, or 17.0 percent. Nevertheless, West Java's dominance in the investment sector is seen as a strong signal of increasing investor confidence in the region's business climate, both domestic and international. For Dedi Mulyadi, investment is not just about numbers and rankings. He further emphasizes the importance of its direct impact on the community, particularly in creating jobs. "Hopefully, this entire series will create open job opportunities, so that the people of West Java can work and avoid unemployment in their own region," he emphasized. This achievement also provides new hope for millions of West Java residents: that strong economic growth can go hand in hand with public welfare. If investment continues to be maintained and managed well, West Java has the potential to become not only a destination for capital, but also a home to a more decent future for its citizens. [SOURCE]

Jan, 28 2026

BI remains optimistic that West Java's economic growth in 2023 will be according to predictions, even though it will weaken

Bisnis.com, BANDUNG -- Bank Indonesia West Java explained the causes of weakening economic growth in West Java in the third quarter of 2023. Based on data released by the West Java Central Statistics Agency (BPS), West Java's economy in the third quarter of 2023 grew by 4.57% (yoy). This growth slowed compared to the previous quarter which reached 5.25% (yoy). Head of the West Java Bank Indonesia Representative Office, Erwin Gunawan Hutapea, said that this slowdown was caused by still weak export demand which had an impact on decreasing the performance of the processing industry sector as the main contributor to the West Java economy. Apart from that, the contracting growth in government spending has also become a barrier to higher economic growth. Furthermore, El-Nino, which affects the performance of the agricultural sector, also holds back the acceleration of West Java's economic growth in the third quarter of 2023. From the demand side, the source of West Java's economic growth in the third quarter of 2023 is driven by growth in household consumption of 5.83% (yoy), consumption of Household Non-Profit Institutions (LNPRT) of 21.17% (yoy), as well as investment of 8.40% (yoy). The increase in household consumption is driven by community mobility which remains high, especially in tourism activities and maintained people's purchasing power. This is reinforced by the results of the Bank Indonesia Consumer Survey, namely the Consumer Confidence Index, which remains recorded at an optimistic level of 106.17 in the third quarter of 2023. "Apart from that, the high level of various preparatory activities for the 2024 General Election will also have a positive impact on LNPRT consumption performance in West Java," he said, Tuesday (7/11/2023). Furthermore, investment realization in West Java until the third quarter of 2023 reached IDR 153.2 trillion, which is also the highest nationally. In terms of the business sector, West Java's economic growth is still positive, supported by increased performance in several sectors, including the transportation and warehousing sector (12.44% yoy), the food and drink accommodation provision sector (7.76% yoy), the construction sector (5 .88% yoy) as well as the wholesale and retail trade sector (4.32% yoy). The positive performance of the construction sector is in line with the construction of several government projects (Japek Sisi Selatan II Toll Road and various dams). "Apart from that, the performance of the construction sector is also supported by private projects that are still ongoing to meet year-end targets," he said. On the other hand, increasing community mobility driven by tourism activities has a positive impact on improving the performance of the transportation & warehousing sector as well as the food & drink accommodation provision sector. This is confirmed by the growth in airplane passengers (Husein Sastranegara & Kertajati Airport) which was recorded at 57% (yoy), an increase from the previous quarter (32.5% yoy). Apart from that, West Java's Room Occupancy Rate (TPK) was 42.83% in the third quarter of 2023, higher than the second quarter of 2023 (38.98%). "This also has an impact on retail sales which drives the performance of the wholesale and retail trade sectors in West Java," he explained. He assessed that in 2023, West Java's economy is expected to continue to grow positively in the range of 4.7-5.5% (yoy). "This optimism is supported by strengthening domestic demand, where people's mobility in 2023 will be higher than the previous year, as well as the momentum of the political safari which has started in the third quarter of 2023," he explained. In the future, synergy and collaboration need to continue to be strengthened, especially alignment of work programs with all stakeholders. According to him, various efforts need to continue to be made to increase domestic economic resilience, including through optimizing the realization of regional spending, encouraging investment promotion, encouraging the acceleration and expansion of digitalization. "Also ensuring the wheels of the economy run smoothly through holding various events/exhibitions to support MSMEs, as well as continuing to encourage the optimization of connectivity infrastructure to increase economic equality in West Java," he said. (SOURCE)

Nov, 28 2023

Prabowo and SBY meeting to discuss the formation of a new investment institution

President Prabowo Subianto and the 6th President of the Republic of Indonesia Susilo Bambang Yudhoyono (SBY) met in Cikeas, Bogor, West Java, Monday, November 4 2024. The two discussed the formation of a new investment institution. "Pak Prabowo held a meeting with Pak SBY, among other things, discussing the formation of an investment institution that would be formed," said Gerindra Party DPP Daily Chair Sufmi Dasco Ahmad, quoted Tuesday, November 5 2024. Dasco did not specify the nomenclature of the investment institutions. He stated that SBY had experience leading Indonesia for 10 years. As a friend, he said that President Prabowo usually exchanged ideas with SBY. "Mr SBY has 10 years of experience in leading the Republic of Indonesia, of course as friends and comrades he is used to exchanging ideas," he said. Previously, President Prabowo Subianto met the 6th President of the Republic of Indonesia Susilo Bambang Yudhoyono (SBY). The meeting took place at SBY's residence in Puri Cikeas, Bogor, West Java. The general chairman of the Democratic Party, Agus Harimurti Yudhoyono (AHY), announced this meeting at the Democratic Party's National Technical Guidance (Bimtek) activity in Central Jakarta. (SOURCE)

Nov, 12 2024

Hipmi Values the Rapid Investment in Cianjur Supported by Regional Leadership Policy

HIMPUNAN Pengusaha Muda Indonesia (Hipmi) Cianjur Regency, West Java, assesses that the investment climate in Cianjur is showing an increasing trend. This condition is supported by the local government's policy on the ease of business licenses. Chairman of BPC Hipmi Cianjur Regency, Andi Burdah Zawahir, explained that the recent increase in investment value was supported by the small and medium business license (IUMK) and the emergence of new trades such as malls and franchises. These sectors have contributed to investment growth in Cianjur Regency. “If you look at investment growth, based on the data, it has indeed increased quite rapidly. Especially in the last three years during the leadership of Regent Herman Suherman,” he explained, Thursday (15/8). Data from the Cianjur Regency Investment and One-Stop Integrated Service (DPMPTSP) Office, in 2021 investment realization reached 104.43% or Rp1,900,774,252,100 of the target of Rp1,820,000,000,000. Then in 2022, from the target of Rp1,640,000,000,000 realized atRp1,747,988,855,000 or 106.58%. Meanwhile, in 2023, from the target of Rp1,656,400,000,000, Rp1,802,406,639,556 was realized or 108.81%. Meanwhile this year, during the January-July period, investment realization has reached Rp1,172,240,809,204 of the target of Rp1,820,061,327,000 or 64.41%. “Every year for the last three years, investment realization has always exceeded the target,” he said. Andi saw that the rapid achievement of investment growth was directly proportional to the support of regional leadership policies. Coupled with various service innovations that make investors comfortable investing in Cianjur Regency. “This achievement is made possible by the regulation of the ease of business licenses. In fact, DPMPTSP goes directly to the field to provide licensing assistance,” he said. However, he acknowledged that behind the positive progress of investment achievements, there are certainlythere are still shortcomings. Therefore, in the future the local government through technical regional apparatus needs to improve these various shortcomings. “The important thing to do at this time is the leadership figure of the regional head. Because, investment requires legal certainty. For example, about regional spatial planning. Now the spatial regulation in Cianjur Regency has been completed. This is an opportunity to attract investment. Who is the fastest, will get the fastest investment,” he said. Cianjur Putra Indonesia University (UNPI) Economic Observer, Irfan Sophan Himawan, assessed that the rapid pace of investment during the leadership of Cianjur Regent Herman Suherman was an indicator that the policies taken had succeeded in creating a conducive investment climate. “This includes improving infrastructure, simplifying bureaucracy, and providing incentives for investors.providing incentives for investors. All of these are attractive to domestic and foreign investors,” said Irfan. SOURCE

Aug, 16 2024

Navigation