News - The West Java Provincial Government is Optimistic About Economic Growth Reaching 6 Percent

The West Java Provincial Government is Optimistic About Economic Growth Reaching 6 Percent

Dec, 29 2025

KBRN, Bandung: The West Java Provincial Government (Pemprov) is optimistic that its economic growth rate can reach 5.5 to 6 percent in 2026. This was conveyed by the Regional Secretary (Sekda) of the West Java Provincial Government, Herman Suryatman, in a press statement on Saturday (December 27, 2025).

According to him, this optimism is based on the numerous development activities, particularly infrastructure, expected in 2026. This will result in increased investment and strengthened production activities.

"Currently, our LPE is above the national average of 5.2 percent. Next year, we are optimistic that it can reach 5.5 to 6 percent," he said on Saturday (December 27, 2025).

He also stated that the benefits of the infrastructure development being accelerated will begin to have a significant impact in 2026, accompanied by increased employment and industrial production capacity.

"With solidity across all components and strong leadership, this is reflected in Governor KDM's strong leadership in accelerating development in West Java," he said.

Herman added that West Java's provincial revenue realization has reached between 85 and 90 percent of the target. He is confident that by the end of 2025, the figure will reach above 95 percent, as will West Java Provincial Government spending.

He also mentioned that West Java is experiencing a foreign trade surplus, also known as exports. The West Java Statistics Agency (BPS) recorded West Java's exports in October 2025 at USD 3.36 billion, a 2.69 percent increase compared to USD 3.27 billion in September 2025.

"Cumulatively, West Java's exports from January 2025 to October 2025 increased by 2.31 percent compared to the same period in 2024. This indicates a positive trend for the West Java economy," he said.

[SOURCE]

Dedi Mulyadi and West Java's Commitment to Encouraging Investment: Quick Solution in 20 Minutes

In just 20 minutes, West Java Governor Dedi Mulyadi demonstrated fast, solution-oriented, and visionary leadership by resolving various investment issues faced by BYD, one of the world's largest electric car and battery manufacturers. His move emphasized that an efficient and responsive bureaucracy can be a major catalyst for regional economic growth. "We do not want investment to be hampered by complicated bureaucracy. Every problem must be resolved quickly and accurately," Dedi Mulyadi emphasized in the meeting. This statement strengthens the West Java Provincial Government's commitment to creating a stable and progressive investment climate through fast, responsive policies that favor the interests of the community and investors. Government Commitment to Ensuring Investment Security and Comfort In a meeting attended by regional officials and stakeholders, Dedi Mulyadi emphasized that the government will protect investment in West Java, not only in terms of security but also comfort. As concrete evidence, the West Java Provincial Government has prepared funds of IDR 40 billion to guarantee the security of investors. "We want to ensure that investment in West Java is not only safe, but also comfortable for local entrepreneurs and workers," said Dedi Mulyadi. In addition, the government also ensures the improvement of supporting infrastructure, including road networks to investment locations, for the smooth operation of the industry. Quick Solution to Infrastructure and Accessibility Constraints One of the main challenges in BYD's investment in Subang is the limited access of toll roads to the Subang Smartpolitan industrial area. Representatives from the area management proposed the construction of temporary access at KM 88 of the Cipali Toll Road to accelerate connectivity to Patimban Port. Dedi Mulyadi immediately took concrete steps by contacting the Ministry of Public Works (PU). In a short time, he requested direct approval from the ministry for the construction of temporary access. The Minister of PU responded positively, and a technical meeting between the local government and the ministry was scheduled for next Monday to accelerate the licensing process and project implementation. "We will ensure that this project runs smoothly, because good connectivity is crucial for industrial growth in West Java," said Dedi Mulyadi. This quick step shows the effectiveness of cross-sector coordination in supporting investment in West Java, proving that the government's commitment to infrastructure and connectivity is not just talk, but real action that can be executed efficiently. Job Opportunities for 18,000 Local Workers BYD's investment in Subang opens up job opportunities for 18,000 workers. To ensure the readiness of the workforce, the provincial and district governments will conduct digital-based workforce data collection in each village, especially around the investment location. In addition, prospective workers will be given military discipline-based training to improve work ethic and professionalism. Governor Dedi Mulyadi emphasized that all training costs will be borne by the provincial and district governments as a form of long-term investment in building a quality workforce. With this approach, it is hoped that the West Java workforce will be able to compete not only at the national level, but also in the global market. Effective Resolution of Land Acquisition Problems Land acquisition problems are often an obstacle in investment development. Dedi Mulyadi emphasized that land acquisition must be carried out directly between land owners and investors, without going through intermediaries or brokers who often cause land prices to skyrocket unreasonably. As a solution, the government offers several options, including relocation to areas that have been prepared with adequate facilities such as housing, access to education, and employment. This approach ensures that affected communities continue to benefit from this investment project without losing their right to economic welfare. West Java: A Competitive Investment Destination The success in resolving various investment obstacles in just 20 minutes is real proof of the effectiveness of Dedi Mulyadi's leadership. "The government must be present as a solution, not an obstacle. If there are investment problems, we must resolve them quickly and appropriately," said Dedi Mulyadi. With firm, proactive policies that favor the interests of the community, West Java is increasingly strengthening its position as a competitive and conducive investment destination. The commitment to providing convenience for investors, accelerating the licensing process, and ensuring the welfare of local workers makes West Java a model for investment management in Indonesia. With well-managed investment, West Java will not only become an industrial destination, but also a center for innovation and sustainable economic growth. With this approach, regional economic growth is expected to be increasingly rapid, creating jobs, and improving the welfare of the community at large. (SOURCE)

Apr, 08 2025

Minister of Tourism and Creative Economy Encourages Development of Creative Economy Potential in Cimahi City Through Creative Words

Cimahi, 4 April 2024 - Minister of Tourism and Creative Economy/Head of the Tourism and Creative Economy Agency (Menparekraf/Kabaparekraf) Sandiaga Salahuddin Uno encourages creative economy (ekraf) actors in Cimahi City to explore the superior potential of their region to the maximum through the Regency/City program (KaTa ) Creative 2024. While attending the 2024 Creative Words Workshop at Alam Wisata Cimahi, Jalan Colonel Masturi, Cimahi City, West Java, on Thursday (4/4/2024), Minister of Tourism and Creative Economy Sandiaga said that Cimahi City is an area with a diversity of socio-cultural potential, historical heritage, and nature which can be strong capital for local governments in developing the tourism ecosystem and creative economy, especially in developing the creative economy subsectors of animated films and videos, fashion and culinary. "We want to understand what creative economy actors need to be able to further improve their business. We are grateful that this city, which only has 3 sub-districts, is a creative city, and the subsectors chosen are animation and video, fashion and culinary. "Who knows, because Bandung has become a city of design, and Cimahi could also become a city of animation at world level," said Minister of Tourism and Creative Economy Sandiaga. According to Sandiaga, the large creative economic potential in Cimahi City can provide added value in strengthening the attractiveness of tourist villages around Cimahi City. The Minister of Tourism and Creative Economy also revealed that the City of Cimahi had carried out a pilot test of the Indonesian Creative Regency/City Self-Assessment (PMK3I) in 2018 and agreed on the Film, Animation and Video subsector as its leading creative economy subsector and to be the locomotive for the development of the creative economy in Cimahi City. Due to its consistency and strong commitment in developing the tourism sector and creative economy, in 2021 the City of Cimahi has also been designated as an Indonesian Creative Category. Minister of Tourism and Creative Economy Sandiaga Uno while reviewing one of the MSME fashion products participating in the 2024 Cimahi City Creative Word Workshop at Cimahi Tourism Nature, West Java, Thursday (4/4/2024). “The hope is that this Creative Word will become even stronger. And we have programs that we can collaborate on, such as AKI, ADWI. "And through this Creative Word, it is hoped that it can create 4.4 million new quality and sustainable jobs," said Minister of Tourism and Creative Economy Sandiaga. Cimahi City is the third location for the 2024 Indonesian Creative Regency/City Development Workshop (KaTa Creative) activities. This workshop activity is a form of commitment and consistency of the Ministry of Tourism and Creative Economy/Baparekraf in its efforts to understand the needs of creative economy actors and provide support and facilitation related to the development of tourism and the creative economy. Also accompanying the Minister of Tourism and Creative Economy, Deputy for Strategic Policy at the Ministry of Tourism and Creative Economy/Baparekraf Dessy Ruhati; Special Staff to the Minister for Security of Tourist Destinations and Strategic Issues, Brigadier General TNI Ario Prawiseso; Director of Creative Economy Infrastructure of the Ministry of Tourism and Creative Economy/Baparekraf, Oneng Setya Harini; Director of Destination Development I Kemenparekraf/Baparekraf S. Utari Widyastuti; and Director of Investment Management at the Ministry of Tourism and Creative Economy/Baparekraf, Zulkifli Harahap. Also present, Acting. Mayor of Cimahi Dicky Saromi; Head of the West Java Province Tourism and Culture Service, Benny Bachtiar; Head of the Culture, Tourism, Youth and Sports Service, Achmad Nuryana; and Partnership Executive/Business Development Bobobox, Dennis Depriadi. (SOURCE)

Apr, 05 2024

OJK Encourages Karawang to Become a Driver of Coastal Economic Growth in West Java

ZONA PRIANGAN - Karawang Regency has strong potential as a driver of economic growth in West Java's coastal areas. The Financial Services Authority (OJK) of West Java Province affirmed its commitment to strengthening the regional economy by expanding financial inclusion and strengthening the micro, small, and medium enterprise (MSME) ecosystem. This support was conveyed by the Head of the West Java OJK, Darwisman, during a meeting with Karawang Regent Aep Syaepuloh at the Karawang Regent's Office on Friday (12/12). The meeting discussed strategies for increasing access to safe, affordable, and sustainable financing, particularly for MSMEs and the leading coastal commodity sector. Darwisman emphasized the importance of mapping Karawang's leading commodities to strengthen the upstream-downstream ecosystem and ensure the availability of credible offtakers so that MSME products are sustainably absorbed by the market. From a banking perspective, the OJK is encouraging expanded access to capital so that small businesses not only survive but also thrive. Economically, Karawang recorded 6.40 percent year-on-year (YoY) growth, surpassing the West Java average of 5.20 percent YoY. Karawang's economic structure remains dominated by the secondary sector, contributing 74.66 percent to the GRDP. West Java's banking performance as of October 2025 also showed a positive trend, with total assets growing 3.51 percent year-on-year, Third Party Funds (TPF) increasing 5.58 percent year-on-year, and credit disbursement increasing 4.02 percent year-on-year. In Karawang, credit disbursement reached IDR 76.82 trillion, representing an 8.11 percent year-on-year growth, higher than the West Java average. Karawang ranks fifth in terms of credit disbursement in West Java with a market share of 7.41 percent. Credit disbursement in Karawang is dominated by the Household sector (34.83 percent), the Manufacturing Industry (32.97 percent), and Wholesale and Retail Trade (9.41 percent). The manufacturing industry sector recorded the highest growth of 27.67 percent year-on-year, confirming Karawang's role as a strategic manufacturing hub. However, MSME credit disbursement still faces challenges. Outstanding MSME loans in Karawang decreased by 4.32 percent to IDR 10.13 trillion, with 182,913 accounts. Karawang ranks sixth among MSME lenders in West Java, with 555,891 MSMEs, or 3.49 percent of the total number of MSMEs in West Java. The Financial Services Authority (OJK), along with the Karawang Regional Financial Access Acceleration Team (TPAKD), continues to promote MSME credit distribution to reduce reliance on high-interest informal loans, including through optimizing low-cost financing such as the People's Business Credit (KUR). Karawang Regent Aep Syaepuloh welcomed the OJK's support and emphasized the importance of MSME financing based on superior regional commodities to drive inclusive and sustainable economic growth. [SOURCE]

Dec, 29 2025

Hong Kong Investors Show Growing Interest in Indonesia’s Industrial Estates

Interest from Hong Kong investors in Indonesia’s industrial estates continues to increase, in line with the global supply chain shift toward Southeast Asia. This perspective was highlighted during the business forum “Indonesia Infrastructure Transformation – Unlocking Cross Border Investment Opportunities”, held in Hong Kong on March 4 and organized by HSBC and the Federation of Hong Kong Industries. During the forum, PT Suryacipta Swadaya, a subsidiary of PT Surya Semesta Internusa Tbk, presented its perspective on the development of industrial estates in Indonesia, particularly in relation to the ongoing global supply chain relocation. According to Suryacipta’s Chief Commercial Officer, Abednego Purnomo, investors today are not only looking for industrial land. Manufacturing companies are increasingly seeking industrial areas that provide integrated logistics systems, digital infrastructure, and support for energy transition. This shift in demand is also linked to Indonesia’s effort to reduce its national logistics costs. Currently, logistics costs account for approximately 23 percent of Indonesia’s Gross Domestic Product (GDP). The government aims to reduce this ratio to around 8 percent by 2045. The presence of Patimban Port in West Java, which is projected to become a major automotive export hub, is expected to help improve logistics efficiency. The infrastructure is also anticipated to strengthen connectivity for surrounding industrial estates, including Subang Smartpolitan. Hong Kong remains one of the most important sources of capital for Indonesia. Direct investment from Hong Kong reached approximately US$ 35.5 billion between 2021 and 2025, making it one of the largest contributors of Foreign Direct Investment (FDI) to the country. During the discussion, investors also highlighted the importance of speed-to-market, emphasizing that regulatory certainty and infrastructure readiness are key factors in accelerating the start of production activities. In addition, the trend toward green industrialization is becoming an increasingly important consideration for global investors. Industrial estates are expected to provide infrastructure that supports energy efficiency and emission reduction targets. Investment data shows that the metal industry sector has been the largest recipient of FDI from Hong Kong, accounting for approximately 19.7 percent during the 2021–2025 period. Looking ahead, electric vehicle battery development and the pharmaceutical industry are expected to present promising investment opportunities. [Source]

Mar, 11 2026

Optimistic that Investment Reaches IDR 1,650 Trillion, Can Control 61 Percent of Freeport Shares

DAILY DISWAY - Minister of Investment/Head of the Investment Coordinating Board Bahlil Lahadalia is confident that the 2024 presidential election will be held in one round. That's why he also believes that the conducive political situation will enable Indonesian investment this year to reach the target of IDR 1,650 trillion. So, Indonesia can achieve economic growth of above 5 percent. "Hopefully what the KPU decides can only last one round. "Because we see that the difference is very large, but we are waiting for the KPU's decision," said Bahlil at the 2024 Post-Election Investment Prospects press conference at his office, Monday, March 18 2024. Of the total investment target, Bahlil detailed that Foreign Direct Investment (PMA) remains the same as last year. Namely a minimum of 52 percent. This is because the global economy has not yet recovered and stabilized. Moreover, the current geopolitical situation is still characterized by tension in the Middle East. Also Ukraine and Russia where there are still no signs of recovery. So, many countries are already experiencing a recession. Bahlil reported that investment realization from January to December 2023 reached IDR 1,418.9 trillion. This figure was recorded as 101.3 percent of the target set at IDR 1,400 trillion. The investment realization achievement consisted of PMA of IDR 744 trillion or 52.4 percent of the target. Then, another 47.6 percent was Domestic Investment (PMDN) or IDR 674.9 trillion. And the largest investment realization occurred outside Java with achievements reaching IDR 730.8 trillion or 51.5 percent of the target. Meanwhile, realization on the island of Java was recorded at 48.5 percent or reaching IDR 688.1 trillion. Of this total investment, it has absorbed 1.8 million Indonesian Workers (TKI). Bahlil also resolved stalled investments. Namely IDR 558.7 trillion or around 78.9 percent of the total IDR 708 trillion. The remaining amount, amounting to IDR 149.3 trillion, said Bahlil, was difficult to complete due to a number of obstacles."We can no longer make improvements. This is because it can no longer be executed, due to the companies experiencing internal difficulties," he said. Furthermore, he explained various positive developments in the realization of other investments. Among them is the PT Lotte Chemical Indonesia factory in Cilegon with an investment of IDR 59.4 trillion. This investment is the result of completion of stalled investment since 2016. Now the progress of investment realization has reached 85 percent. It is estimated that production will start this year. The resulting products will be import substitutes. The composition is 70 percent for domestic needs and 30 percent for exports. Bahlil then emphasized that his party was accelerating the revision of Government Regulation (PP) number 96 of 2021 concerning the Implementation of Mineral and Coal Mining Business Activities. If the regulations are complete, Bahlil said, the government will increase its shares in PT Freeport Indonesia (PTFI) by 10%. From the previous 51% to 61%. The revision of PP 96 was brought to a Limited Meeting (Ratas) with the President of the Republic of Indonesia Joko Widodo some time ago. With this revision, said Bahlil, there will be adjustments and acceleration in the framework of sustainable investment. "If that happens and the potential for additional Freeport shares in Indonesia becomes 61 percent, it means that Freeport no longer belongs to someone else, but already belongs to us," he said. Under the current regulations, a new contract extension can be submitted no sooner than 5 years before the contract ends. And no later than 1 year before the contract ends. "We changed it because it is integrated with the smelter," he explained. Apart from that reason, specifically for PT Freeport Indonesia (PTFI), for example, applications for contract extensions can be made immediately. Remembering that there must be certainty regarding investment. Especially for carrying out production at the company's mines. "In 2035, Freeport's production will start to decline, while we will explore underground for at least 10 years," continued Bahlil. So, he said, if we start thinking about extending it until 2035, there will be a vacuum of approximately 5-10 years. (SOURCE)

Mar, 21 2024

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