News - West Java Economy Projected to Grow Better in 2025, Facing New Leadership Challenges

West Java Economy Projected to Grow Better in 2025, Facing New Leadership Challenges

Apr, 09 2025

POJOKSATU.ID — Bank Indonesia (BI) projects that the West Java economy in 2025 will grow better than in 2024, with a growth target of 4.7% to 5.5% (year on year/yoy).

This optimism is supported by the global economic recovery and the strengthening of the domestic economy which is expected to continue.

Head of the West Java Bank Indonesia Representative Office, Muhammad Nur, stated that this positive projection was driven by several key factors. One of them is the increase in people's purchasing power along with the increase in the West Java Provincial Minimum Wage (UMP). In addition, private investment is also expected to increase with an investment target of IDR 270 trillion in 2025.

"Public optimism and increased private investment are the main driving forces for the West Java economy. We hope that this target can be achieved while maintaining price stability and encouraging new sources of economic growth," said Muhammad Nur when met in Bandung.

However, Muhammad Nur emphasized that West Java also faces major challenges, especially related to the transition of national leadership. The central government's policy within the framework of the "Asta Cita" vision promoted by the new government has the potential to affect the flow of funds to the regions, given the increasingly limited fiscal space.

"Strong synergy is needed between regional and central governments so that the economic policies taken can have a real impact on the regional economy. In addition, maintaining people's purchasing power, especially the lower middle class, is a priority so that economic recovery can be sustainable," explained Muhammad Nur.

Another challenge is the still high dependence on imports and the normalization of the fiscal budget after the 2024 political year. For this reason, West Java is expected to strengthen the processing industry, agriculture, and export sectors by taking advantage of improvements in international trade relations with the United States and European countries.

"Efforts to reduce dependence on imports and increase domestic industrial productivity continue to be made. This is important so that the West Java economy remains resilient in the face of global uncertainty," added Muhammad Nur.

As part of the vision of "Special West Java 2025-2029" in order to move towards "Most Advanced West Java 2045", Bank Indonesia supports a mix of monetary, macroprudential, and payment system policies to maintain economic stability.

"BI is ready to support synergy with all stakeholders in West Java. We hope that economic growth can continue in a sustainable and inclusive manner," concluded Muhammad Nur.

With optimism and readiness to face challenges, the West Java economy is expected to grow more solidly in 2025, providing benefits to the wider community and strengthening regional competitiveness at the national and global levels.***

[SOURCE]

KemenKopUKM Encourages Expansion of Access to Capital for Producer Cooperatives

The Ministry of Cooperatives and SMEs encourages the expansion of access to capital for producer cooperatives, including the Gunung Luhur Berkah (GLB) Producer Cooperative in Subang, West Java, which manages the coffee business. Secretary of the Ministry of Cooperatives and SMEs, Arif Rahman, during a visit to GLB Producer Cooperative in Cisalak Village, Subang Regency, West Java, Sunday (4/8/2024), said that producer cooperatives are very important to get expanded access to capital in order to increase their business scale. Moreover, cooperatives that manage coffee commodities, Arif said, have tremendous potential to continue to be developed because they have guaranteed market certainty at home and abroad. Therefore, partnering with GLB Producer Cooperatives is a symbiotic mutualism. GLB Producer Cooperative is a national primary cooperative that focuses on Arabica and Robusta coffee cultivation, which has successfully exported coffee directly to several countries (without intermediaries) such as Saudi Arabia, Egypt, Lebanon and the United States. The cooperative was established in 2016 and has around 800 members with a total of 1200 hectares of coffee land and 300 hectares of rice fields. Unfortunately, the cooperative has experienced capital constraints. "This is a very potential cooperative, which even has a warehouse managed by warehouse receipt, but there are obstacles to capital even though the market demand is large," Arif said in his official statement, Sunday (4/8/2024). Arif explained that the GLB Producer Cooperative currently not only manages its own plantations from its members but also as an aggregator in plantations in West Java which have an area of around 200 hectares. "In the future, we will add another 50 hectares, so today we invite investors to be involved in building partnerships with the GLB Producer Cooperative," Arif said. Arif said that everyone has the opportunity to partner with the GLB Producer Cooperative. "Everyone can be an investor," he said. On the same occasion, Chairman of the Dharma Bhakti Astra Foundation (YDBA), Rahmat Samulo welcomed the initiative of the Ministry of Cooperatives and SMEs (KemenKopUKM). "I personally see this as very prospective for investment and also empowering the community here to be more advanced because the commodities exist, the market also exists," Rahmat said. In the same place, Chairman of the GLB Producer Cooperative Miftahudin Shaf appreciated the various policies and support from KemenKopUKM for the development of cooperatives in running businesses, especially for the Gunung Luhur Berkah Producer Cooperative. "Alhamdulillah, this is very good for the prospects of our members, especially to overcome our current obstacles related to capital for additional plantations in order to achieve the target of one person (farmer) controlling at least 3 hectares so that it enters the economic scale," said Miftah. The calculation, with an investment of Rp65 million per hectare, includes the cost of seeds, planting, maintenance, and harvesting. "It will produce when it enters the age of 2 years, and in the third year the capital can be returned," said Miftahudin. Entering the third year, said Miftahudin, it will have entered the profit revenue sharing stage of 30:70 for investors. "Every year, the price of coffee always increases, never decreases," said Miftahudin. Moreover, said Miftahudin, the GLB Producer Cooperative already has offtaker partners in Egypt (Alpostan Company), Saudi Arabia (Al-Sahabh Trading Company and Abdul Wahid Trading Co), Lebanon (Arc Build/Ghaleb K Faour), and Indonesia (PT Perusahaan Perdagangan Indonesia, PT Sulotco Jaya Abadi, and Mayora). SOURCE

Aug, 05 2024

Investment Needs to be Encouraged to South West Java

PORTALJABAR, BANDUNG CITY - The West Java Provincial Government continues to strive to increase economic growth in all sectors through increasing the investment sector. However, investment growth in West Java is currently not evenly distributed throughout the region. This is the case with investment growth in East Priangan which is considered to be lagging behind growth in other West Java regions. Therefore, West Java DPRD member Yod Mintaraga asked the West Java Provincial Government to encourage investment in the southern part of West Java. "Now investment is still juxtaposed, economic growth in southern West Java is still low, people's purchasing power is still low. Therefore, investment must be encouraged to South West Java," said Yod, last weekend. Yod said that one of the things that must be encouraged in East Priangan is the issue of connectivity or infrastructure. Infrastructure will be able to encourage and facilitate investors to invest well and easily. and easy. "If investment is encouraged to South West Java, the risk is that infrastructure development must also be encouraged to South West Java," concluded Yod. (SOURCE)

Jul, 12 2024

Bandung City has Investment Attractiveness, Here are 10 Potential Sectors

VIEWJABAR.COM - As the capital of West Java Province, Bandung City has its own attraction for investors to invest. In addition to providing economic benefits, investors also contribute to regional development. The existence of a harmonious blend of modernity and tradition, making Bandung one of the main investment destinations in Indonesia. With its various potentials, Bandung has become one of the main destinations for investors in seeking opportunities. Here are 10 potential sectors for investment in Bandung City: 1. Trade Sector: This sector continues to grow in Bandung City which is also known as a shopping paradise for tourists. 2. Tourism and MICE Sector: The city of Bandung has a variety of tourist and exhibition facilities or objects, becoming a major destination for economic tourism in Indonesia. 3. Services Sector: The services sector is supported by the productive and innovative character of the citizens of Bandung City, thus encouraging significant economic growth. 4. Transportation Sector: As a city of tourism and education, Bandung has high mobility with various transportation branches that reach the entire city. 5. Telecommunication and Technology Sector: Bandung is also known as the birthplace of Indonesia's leading technology and gaming startups. 6. Arts and Culture: The people of Bandung have always maintained the traditional culture that developed in the community, making it a center for modern art and culture. 7. Manufacturing Sector: Bandung is home to a variety of manufacturing industries, ranging from food, printing, textiles to national strategic industries. 8. Infrastructure and Housing: Infrastructure development and housing provision support economic growth in Bandung City. 9. Food and Beverages: Bandung is known as a culinary paradise with delicious food that can be found anywhere. 10. Fashion: Bandung is known as one of the fashion and craft centers, not only in Indonesia but also in Southeast Asia. not only in Indonesia but also in Southeast Asia. With unlimited potential, Bandung offers many opportunities for investors to participate in economic development and growth. Thus 10 potential sectors to invest in Bandung City, hopefully useful. SOURCE

Aug, 05 2024

Check the 5 Provinces with the Largest Investment Realization Until September 2024

KONTAN.CO.ID – JAKARTA. The Ministry of Investment and Downstreaming/Investment Coordinating Board (BKPM) revealed that investment realization reached IDR 1,261.43 trillion until September 2024. From this level, there are 5 provinces with the largest investment realization in the January – September 2024 period. Minister of Investment/Head of BKPM Rosan Roeslani revealed that the investment realization had reached 76.45% of the target set in 2024, namely IDR 1,650 trillion. The investment achievements came from Foreign Direct Investment (PMA) which reached IDR 654.4 trillion or 51.88% and Domestic Investment (PMDN) of IDR 607.03 trillion or reached 48.12%. "The five provinces with the largest investment realization are still DKI Jakarta, amounting to 191.78 trillion or 15.2%," he said at a joint working meeting with Commission XII DPR RI, Jakarta, Tuesday (3/12). In second place, West Java Province was filled with IDR 184.90 trillion or 14.66%. Then there is East Java with IDR 111.44 trillion or 8.83%, Central Sulawesi with IDR 98.60 or 7.82% and the fifth Banten with IDR 83.44 trillion or 6.61%. "If we look at the countries that invest, it is still dominated by Singapore, which for the last 10 years has always been the largest investor in Indonesia, the figure in the first nine months was US$ 14.35 billion," said Rosan. Furthermore, Hong Kong is in second place with an investment of US$ 6.06 billion, China at US$ 5.78 billion, the United States at US$ 2.82 billion and Malaysia at US$ 2.72 billion. (SOURCE)

Dec, 24 2024

Strengthening Inclusive Investment, West Java Provincial Government Socializes Regional Regulation on Ease of Doing Business and MSME Partnerships

The West Java Provincial Government has officially intensified the implementation of Regional Regulation (Perda) Number 4 of 2025 concerning Investment and Ease of Doing Business. This legal framework was issued as a strategic instrument to strengthen a healthy, fair, inclusive, and sustainable investment climate across West Java, while also addressing economic disparities between large-scale businesses and local regions. Head of the West Java Investment and One-Stop Integrated Services Agency (DPMPTSP), Dedi Taufik, emphasized that the new regulation is not merely an administrative document or a formal regulation on paper. The regulation is designed as a strong legal umbrella to encourage regional economic growth and ensure that quality investment growth directly contributes to improving the welfare of local communities. “This regulation is intended to create a much more transparent, accountable, and locally supportive investment climate. Our primary orientation is not merely to pursue macro investment figures, but to ensure that the economic benefits generated from investment can be distributed evenly and felt tangibly by all levels of society,” said Dedi Taufik during the Regional Regulation Socialization Agenda in Cirebon Regency recently, Tuesday (May 26, 2026). According to his explanation, the new regulation governs various comprehensive fundamental aspects, ranging from investment planning blueprints, investment implementation procedures, fiscal and non-fiscal incentives, investment facilities, to the integration of electronic-based licensing services through the Electronic-Based Government System (SPBE). The West Java Provincial Government is committed to providing fast licensing services in order to enhance regional competitiveness at both national and international levels. Dedi underlined that one of the core principles of the regulation is the obligation to strengthen strategic partnerships between large corporations and Micro, Small, and Medium Enterprises (MSMEs) as well as cooperatives. Healthy partnership schemes are expected to generate multiplier effects for the local economy. Large corporations are required to involve MSMEs in their production supply chains, ensuring that small business actors are no longer merely spectators in their own regions. To socialize this strategic regulation, the West Java DPMPTSP collaborated with members of the West Java Regional House of Representatives (DPRD) as well as DPMPTSP offices from Cirebon Regency, Cirebon City, and Kuningan Regency. The socialization event was enthusiastically attended by approximately thirty-five representatives of large-scale businesses and one hundred MSME actors from the Cirebon Region III area. During the forum, major investors were given an in-depth understanding of the latest partnership regulations that must be complied with as operational business requirements. As a concrete form of support on the ground, the West Java DPMPTSP also opened a free Business Identification Number (NIB) registration service booth for small business actors during the event. This basic legal document is crucial for MSMEs as an official gateway to access various business management development programs, halal certification, and formal banking financing facilities. In addition to local partnership issues, the West Java Provincial Government, through this regulation, is also encouraging a shift toward green investment. Investors entering West Java are encouraged to pay attention to environmental sustainability, social empowerment, and the circular economy to ensure that development does not damage natural ecosystems. Dedi Taufik added that the success of Regional Regulation Number 4 of 2025 will largely depend on consistent supervision and evaluation in the field. His office assured that the simplification of licensing processes through the Online Single Submission (OSS) system will continue to be monitored closely, accompanied by the provision of supporting infrastructure and the improvement of local human resource capacity to absorb newly created employment opportunities. Through this regulation, West Java remains optimistic about maintaining its position as the nation’s leading investment destination while also serving as a driving force for equitable public welfare. [Source]

May, 29 2026

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