News - West Java Expands Investment Incentives and Accelerates Power Supply

West Java Expands Investment Incentives and Accelerates Power Supply

Jul, 02 2026

The West Java Provincial Government has begun accelerating a series of strategic measures to ensure that its investment target of Rp314 trillion in 2026 is achieved.

In addition to expanding fiscal incentives, the provincial administration is focusing on addressing long-standing obstacles that have hindered investment inflows, ranging from licensing issues to limited electricity supply in industrial estates.

Energy has emerged as one of the government's top priorities. Growing electricity demand from modern industries, particularly data centers, is putting increasing pressure on the power grid capacity in several industrial zones that have long served as key drivers of West Java's economic growth.

These efforts to accelerate investment were the central topic of the 2026 West Java Investment Policy Socialization held by the West Java Investment and One-Stop Integrated Services Agency (DPMPTSP), in collaboration with the West Java I Regional Office of the Directorate General of Taxes and PT PLN's Central West Java Development Main Unit in Bandung on Wednesday (July 1, 2026).

Head of the West Java DPMPTSP, Dedi Taufik, stated that West Java remains one of Indonesia's leading investment destinations. Therefore, successfully addressing regional investment challenges will have a direct impact on the country's overall investment performance.

Throughout 2025, investment realization in West Java reached Rp296.8 trillion. This year, the provincial government has increased its target to Rp314 trillion. However, by the end of the first quarter of 2026, realized investment had only reached Rp76.8 trillion, highlighting the need for more systematic and measurable acceleration efforts.

"West Java has consistently contributed around 15 percent of Indonesia's total investment realization. Therefore, resolving investment bottlenecks in West Java is expected to make a significant contribution to achieving the national investment target," Dedi said in a statement on Thursday (July 2, 2026).

According to him, investors' decisions are influenced not only by government incentives but also by the ease of project implementation, cost efficiency, and the availability of supporting infrastructure.

"These three aspects must be present simultaneously to enable investment projects to be realized more quickly," he added.

To accelerate project implementation, the West Java Provincial Government is promoting the utilization of the Direct Construction Investment Facility (Kemudahan Investasi Langsung Konstruksi/KLIK).

Under this scheme, investors are permitted to begin construction earlier once they have fulfilled the government's basic requirements.

The policy has been reinforced by the expansion of industrial estates eligible for the KLIK facility. Based on the Minister of Investment and Downstream Industry/Head of the Investment Coordinating Board (BKPM) Decree No. 161.S of 2026, the number of industrial estates implementing the KLIK scheme in West Java has doubled from 12 to 24.

The expansion is expected to significantly reduce investment waiting times while strengthening West Java's competitiveness amid increasing competition among provinces to attract both domestic and foreign investment.

In addition to streamlining licensing procedures, the provincial government is also providing technical assistance to industrial estate operators to help resolve operational challenges that may delay project realization.

Support for the investment climate also comes from the taxation sector. During the forum, Iwan Djuniardi, Expert Staff for Tax Regulations and Law Enforcement at the Ministry of Finance, explained that Indonesia's tax authority is now adopting a more collaborative approach.

The new strategy aims to foster stronger relationships between the government and taxpayers by enhancing trust and promoting long-term partnerships.

Meanwhile, the West Java I Regional Office of the Directorate General of Taxes presented various tax incentives available to investors, including Tax Holiday, Tax Allowance, customs facilities, incentives for Special Economic Zones (SEZs), and Super Tax Deduction schemes for research and development, technological innovation, and vocational education activities.

In the energy sector, PT PLN's Central West Java Development Main Unit confirmed that the province's electricity supply remains generally sufficient. However, the rapid growth of energy-intensive industries has begun to strain grid capacity in several industrial areas.

To address this challenge, PLN has introduced accelerated development schemes for substations and transmission networks, including opportunities for customers to finance electricity infrastructure development through a cost-compensation mechanism for grid connection fees in accordance with prevailing regulations.

Discussions involving the provincial government, tax authorities, PLN, and business representatives reached a key conclusion: achieving hundreds of trillions of rupiah in investment cannot rely solely on streamlined licensing procedures. Attracting investors also depends on the availability of competitive incentives and reliable basic infrastructure capable of supporting the needs of future industries.

To that end, the West Java Provincial Government reaffirmed its commitment to strengthening coordination with the central government to accelerate the resolution of strategic investment barriers that have long been raised by investors, while maintaining West Java's position as Indonesia's largest investment destination.

[SOURCE]

With 416 Community Organizations in Subang, Deputy Regent Encourages Active Role in Supporting Development and Investment

KOTASUBANG.com, Subang – Deputy Regent of Subang, H. Agus Masykur Rosyadi, S.Si., M.M., attended the Coordination Meeting on Community Organizations at the Subang Regional Government Hall on Wednesday (August 20, 2025). This coordination meeting was organized by the Directorate General of Politics and General Government of the Ministry of Home Affairs through the Subang Regency National Unity and Politics Agency (Kesbangpol) with the theme “Increasing the Participation of Community Organizations in Supporting Sustainable Economic Development to Strengthen National Resilience”. On this occasion, Kang Akur—the nickname of the Deputy Regent of Subang—said that from 2016 to April 2025, there were 416 community organizations (ormas) in Subang Regency. According to him, this number represents a huge potential as well as an important responsibility in supporting regional and national development. “Community organizations have a strategic role in creating a peaceful, conducive, and productive climate. Therefore, there needs to be guidance, supervision, and strengthening of the role of community organizations so that they truly become partners of the government and the community,” he said. Kang Akur also emphasized that community organizations in Subang must be able to make a real contribution in supporting a healthy investment climate, especially since Subang is now the gateway for global investment in Indonesia. “We encourage investment to be easy and friendly. Anyone who wants to invest in Subang should not face any obstacles,” he said. Previously, Abdul Ghofur, S.STP., M.Si., Acting Head of the Community Organization Empowerment and Partnership Working Team at the Directorate General of Community Organizations, Ministry of Home Affairs, stated that Law Number 17 of 2013 serves as the legal basis for the formation and activities of community organizations in Indonesia. He emphasized that the contribution of community organizations is crucial in maintaining a conducive economic climate. “Subang is the gateway to global investment in Indonesia. The role of mass organizations is very important in supporting business actors to create a healthy investment climate,” he said. Meanwhile, Director of Community Organizations at the Directorate General of Politics and Public Administration of the Ministry of Home Affairs, Budi Arwan, S.STP., M.Si., emphasized in his keynote speech that this coordination meeting serves as a means to align understanding, synchronize programs, and plan joint steps in the guidance, supervision, and empowerment of mass organizations. “In this context, CSOs are part of civil society with three predetermined pillars. The involvement of CSOs cannot be separated from national development,” he explained. This coordination meeting was attended by 20 community organizations representing Subang Regency. The event also featured presentations from a number of speakers, including: Dr. Winardi, M.Si. (Director of Industrial Regionalization at the Ministry of Industry), Hirzi S. Kom., M.TI. (BKPM), AKP Tedi Triyono, S.Pd. (Head of Intelligence and Security at the Subang Police), and Ani Caharani, ST., MT. (Head of Development Administration at the Subang Regional Secretariat). Also present were the Media Policy Analyst for General Crimes at the Criminal Investigation Unit of the Indonesian National Police, BKPM officials, the First Assistant to the Subang Regional Secretariat, the Head of Bakesbangpol, the Head of Intelligence at the Subang Police, and other invited guests. With 416 registered civil society organizations in Subang, this forum is expected to generate ideas, strategies, and concrete steps to strengthen the contribution of civil society organizations in development and maintain a healthy investment climate in Subang Regency. [SOURCE]

Dec, 02 2025

Investment in the Rebana area reaches IDR 15.4 trillion, predicted to become an industrial center

REPUBLIKA.CO.ID, BANDUNG-- The Rebana area covers 7 districts/cities in West Java. Namely Subang, Indramayu, Majalengka, Kuningan, Sumedang, Cirebon Regency and City in the last 2 to 3 years have grown into agglomeration areas that are experiencing positive growth. Led by Bernardus Djonoputro, the Rebana Management Agency (BP) has successfully played its role in coordinating 7 regional, provincial governments and investors and donor agencies who are interested in investing in the area. This area could even become a benchmark for urban agglomeration management. The investment value that has flowed is IDR 15.4 trillion during January-October 2024, this area is not only a future industrial center, but also a home for manufacturing innovation and modern technology. According to Head of BP Rebana Bernardus Djonoputro, Rebana has a unique position. Because it covers seven districts/cities in West Java, with infrastructure support that continues to develop. The Rebana area is designed to become a center for economic growth based on industry, logistics and technological innovation. "With an investment of IDR 15.403 trillion that has flowed, we are focused on making Rebana a home for future industries, including electric vehicle manufacturing," said Bernardus. Bernadus said that Rebana had been designed with an integrated ecosystem approach. This area is not only an industrial center, but also supports the development of human resources through quality educational and job training facilities. BYD's presence in Rebana is a successful example of how this area attracts global investors. “The presence of BYD is proof that Rebana has global appeal. "The strategic location, supporting infrastructure and pro-investment policies make this area ideal for high-tech manufacturing industry," he said. Apart from BYD, other industries are starting to grow rapidly in this region. Rebana is now home to hundreds of companies operating in various sectors, from traditional industry to advanced technology. The manufacturing industry is one of the most prominent sectors in Rebana. With the support of modern infrastructure, this area has created thousands of new jobs and attracted skilled workers from various regions in Indonesia. "The manufacturing industry in Rebana is growing very rapidly. We ensure that the available workforce is of a quality that meets the industry's needs through vocational training and education programs," said Bernardus. According to him, there are more than 475 accredited job training institutions in the region, with more than 90,000 graduates every year. This supports the creation of a highly competitive industrial ecosystem. One of the main factors that makes Rebana attractive to investors is its continuously developing infrastructure. The construction of toll roads, ports and airports that are directly connected to this area is the main attraction. Looking at current developments, Rebana is projected to become one of the most advanced economic areas in Indonesia in the next few years. With a focus on environmentally friendly industries, technological innovation and sustainability, this area is expected to attract more global investors. "We are optimistic that Rebana will become an economic center that will not only contribute to West Java, but also to Indonesia as a whole. We continue to strive to ensure that incoming investment provides maximum benefits for all parties," he explained. Bernie, Bernandus's nickname, assessed that, through BP Rebana, West Java can be considered by the Central Government as a region that has successfully managed agglomeration areas through the hands of professionalism. "West Java has become a pioneer, because the concept of a management body is not only here but also in New York to Toronto. So if the government wants to form the same institution in other regions, BP Rebana could be a benchmark," he said. Apart from that, Rebana has also attracted the attention of global donors. JICA, for example, provided support in preparing the master plan and grand design for Rebana. GIZ (Deutsche Gesellschaft für Internationale Zusammenarbeit) is an international company owned by the German Federal Government and operating in more than 130 countries ensuring its commitment to supporting the basic waste infrastructure of the Greater Cirebon TPPAS. Meanwhile, the World Bank Group provides support for the development of livable cities through urban transformation. "There are 5 world donor agencies, 4 partners in the green technology sector, 30 partner organizations, BP Rebana is managed by young professionals. BP Rebana's success could be an opportunity for professionals if they are entrusted with managing the same institution in other areas," explained Bernie . (SOURCE)

Dec, 18 2024

West Java land mapping for water pumps is requested to be completed by April 25 2024

Bandung (ANTARA) - Regional Secretary (Sekda) of West Java Province, Herman Suryatman, requested that mapping of land and farmers as potential recipients and prospective locations (CPCL) for the water pump program for rainfed rice fields in West Java be completed by April 25 2024. After completing the data collection, Herman said that the West Java Provincial Government would immediately submit the documents to the Ministry of Agriculture, which would distribute 5,000 pumps to irrigate 50,000 hectares of rain-fed rice fields in West Java. "So in a meeting with the Regional Secretary last Friday (19/4), it was requested that by April 25 2024 the target for CPCL data collection would be complete and we would send it to the Ministry of Agriculture so that West Java could execute the water pump network program for 50,000 hectares or 5,000 pumps," said Herman Suryatman when confirmed in Bandung, Saturday. Currently, said Herman, the mapping that has been submitted from districts and cities only covers 13,000 hectares or is only covered by around 1,300 pump units, where one pump can irrigate 10 hectares of rice fields. "That's why next week we have to finish collecting data for 50,000 hectares. But we still have to be accountable, that's why the Prosecutor's Office, Polri and TNI are involved to make this pumping program a success," said Herman. In this pumping program, initially the Ministry of Agriculture only provided 2,500 pumps for 25,000 hectares of rice fields. However, because the program was running well in West Java, the Ministry of Agriculture finally provided an additional 5,000 pumps. "The Ministry of Agriculture has provided 2,500 pumps, then because the field is good the Ministry of Agriculture will add another 2,500 pumps for a total of 5,000 pumps for 50,000 hectares of rain-fed rice fields," he said. With this pumping, Herman hopes that West Java's agricultural productivity will increase because farmers will be able to harvest twice a year. "So far, the harvest is only once a year, with pumping, there are two harvests," said Herman. (SOURCE)

Apr, 22 2024

Selangor to Bring 150 Delegates to West Java to Explore Investment Cooperation Opportunities

Invest Selangor Berhad will bring approximately 150 delegates to Bandung, West Java, on July 9–10, 2026, to explore trade and investment cooperation opportunities with the provincial government and local business communities. The visit forms part of SIBS@ASEAN: Bandung Edition, marking the first time the business forum has been held outside Malaysia since its inception nearly a decade ago. Chief Executive Officer of Invest Selangor Berhad, Dato' Hasan Azhari Hj. Idris, stated that the Bandung edition aims to strengthen Selangor’s economic ties with countries across Southeast Asia, particularly Indonesia. "The Bandung Edition marks a new chapter for the Selangor International Business Summit, as it expands beyond Malaysia’s borders for the very first time," Hasan Azhari said in an official statement on Saturday (June 20, 2026). He added that the delegation will be led by Selangor Menteri Besar Dato' Seri Amirudin bin Shari and will comprise government representatives, business leaders, industry associations, and investors from various sectors. According to Hasan, the forum is expected to create new avenues for collaboration and investment between Selangor and West Java. Bandung was selected as the host city due to its similarities with Selangor, particularly in the development of the manufacturing sector, digital technology ecosystem, and micro, small, and medium-sized enterprises (MSMEs). "As we celebrate a decade of SIBS' success, we believe this is the right time to bring Selangor directly to our ASEAN neighbors," he said. The two-day event will feature business exhibitions, investment forums, and industrial site visits. The exhibition, organized in collaboration with Tourism Selangor and Education Malaysia Global Services (EMGS), will involve around 60 Selangor-based entities showcasing collaboration opportunities in the medical tourism and education sectors. Meanwhile, the investment forum scheduled for July 9 will focus on trade and investment opportunities between Selangor and West Java in key sectors, including digital technology, property, manufacturing, and logistics. The forum is expected to be officially opened by Selangor Menteri Besar Dato' Seri Amirudin bin Shari and West Java Governor Dedi Mulyadi. In addition to discussions on Malaysia–Indonesia supply chains and investment prospects, the agenda will include the signing of several Memoranda of Understanding (MoUs) involving government institutions, industry players, tourism stakeholders, and educational institutions from both regions. On the second day, the Selangor delegation will visit several strategic industrial sectors in West Java to assess investment potential and explore cooperation opportunities with local businesses. Invest Selangor stated that the initiative forms part of its broader efforts to strengthen economic relations between Selangor and West Java through enhanced trade and investment collaboration. [SOURCE]

Jun, 22 2026

The Threat of Layoffs in Manufacturing Industry Remains High Despite the Flowing Investment

The country's manufacturing industry is not in good shape. Although the flow of investment in the manufacturing industry is relatively heavy, the trend of layoffs in this sector is also relatively large. Referring to the report of the Ministry of Investment / Investment Coordinating Board (BKPM), manufacturing investment realization grew 24.68% year on year (yoy) to IDR 337 trillion in the first semester of 2024. The manufacturing industry contributed 40.6% of the total national investment realization. However, the wave of layoffs continues to occur in the manufacturing industry, especially in the textile and textile products (TPT) sector, which is a labor-intensive sector. The Confederation of Workers Unions of the Archipelago (KSPN) stated that there were 14,500 textile workers who were laid off from the beginning of the year to July 2024. This number has the potential to increase to 15,000 workers given the planned closure of a textile factory in Bandung, West Java in August. Chairperson of the Indonesian Employers Association (Apindo) Shinta W. Kamdani stated that the potential for layoffs in the manufacturing industry still exists, especially in labor-intensive export-oriented sectors such as TPT. This sector has experienced tremendous pressure both in terms of market and business cost inflation. “Other manufacturing subsectors have a less risk of layoffs, but there is potential for a prolonged hiring freeze,” he said on Tuesday (30/7). In general, Apindo estimates that the condition of the manufacturing industry will be more challenging until the end of the year. Apart from being triggered by an increase in business operating costs as a side effect of the rupiah exchange rate correction, people's purchasing power has also not stabilized so that market demand has decreased. Not only that, some businesses are also still waiting and seeing for business expansion due to the government transition. SOURCE

Jul, 31 2024

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