The High Investment Inflow in Karawang Has Little Impact on Labor Absorption

Karawang (ANTARA) – The Karawang Regency Manpower and Transmigration Office in West Java acknowledged that the high level of investment entering Karawang does not necessarily increase labor absorption because most investments are capital-intensive.

“The investments entering Karawang are mostly capital-intensive, so they don’t significantly affect labor absorption,” said Rosmalia Dewi, Head of the Karawang Manpower and Transmigration Office, on Sunday in Karawang.

Capital-intensive investments mean companies rely heavily on machines and technology, requiring fewer human workers.

This contrasts with about ten years ago when many labor-intensive investments focused on employing large numbers of workers entered Karawang.

“Because most of the incoming investments are capital-intensive, the labor absorption is not very large,” she added.

However, the office continues efforts to improve human resources so local job candidates in Karawang can compete. This includes collaboration with schools and companies to conduct training programs to ensure graduates’ skills meet industry needs.

According to data from the Investment Coordinating Board (BKPM), investment in Karawang reached Rp68 trillion in 2024, a significant increase from Rp42.1 trillion in 2023.

Despite this large investment figure, it does not correspond to a proportional increase in employment.

Data from the Karawang Manpower and Transmigration Office shows that in the first half of 2022, labor absorption amounted to only 4,524 people. In the third quarter of 2023, out of 1,934 investment projects, labor absorption was only 4,314.

From January to June 2025, domestic and foreign investment in Karawang reached Rp30.24 trillion, but the labor absorption for the same period was only 12,209 people.

[SOURCE]