News - West Java Industrial Estate Development 2026: Rp 15 Trillion Investment Begins Production, Absorbs 48,000 Workers

West Java Industrial Estate Development 2026: Rp 15 Trillion Investment Begins Production, Absorbs 48,000 Workers

Sep, 11 2026

DESKJABAR — West Java's industrial areas continued to show significant development throughout 2026. From the inauguration of the BYD electric vehicle factory in Subang to the start of a waste-to-electricity project in Bekasi, the investment landscape in this province with 181 industrial areas is increasingly vibrant.

According to data from the West Java Investment and One-Stop Integrated Services Agency (DPMPTSP), 16 companies had entered the production phase as of June 2026. Total investment from these companies reached Rp 15.45 trillion, employing 48,593 workers.

This is certainly good news for West Java amidst the storm of layoffs (PHK) that has hit Indonesia's industrial sector, which is currently still affected by unstable economic conditions.

The Ministry of Manpower (Kemnaker) recorded that 43,805 workers were laid off in Indonesia from January to July 2026.

Meanwhile, data from the Indonesian Employers' Association (Apindo) recorded a higher number of layoffs, reaching 126,000 workers in January–May 2026. This figure is based on data on inactive workers at BPJS Ketenagakerjaan.

West Java was recorded as the province with the highest number of layoffs. The provinces with the highest number of layoffs as of July 2026 were:

-West Java: 8,830 workers

-East Java: 4,781 workers

-Banten: 4,767 workers

-DKI Jakarta: 3,190 workers

-Central Java: 3,074 workers

Trillions of Rupiah in Investment Flowing in

The most striking development that occurred in the industrial area in West Java this year was seen from the entry of large investments in the manufacturing and energy sectors.

The BYD factory in Subang Smartpolitan Industrial Park officially began operations in September 2026, with an investment of Rp 11.7 trillion. The 126-hectare facility is targeted to produce 150,000 electric vehicles annually and create nearly 9,000 new jobs.

In Karawang, investment realization by mid-2026 reached IDR 20.43 trillion, ranking second highest in West Java.

Foreign Direct Investment (PMA) dominated the figure, amounting to Rp15.95 trillion, while Domestic Direct Investment (PMDN) reached Rp4.47 trillion. The industrial estate, manufacturing, and logistics sectors were the main contributors.

Meanwhile, Bogor Regency recorded Rp13.72 trillion in realized investment through the second quarter of 2026, employing 25,502 workers. The largest investment came from the manufacturing sector, followed by trade and services.

Not only conventional industries, but the renewable energy sector is also growing rapidly. The government's 100 GW solar power plant program began with 14 projects, including one in West Java with a total capacity of 5.3 GWp. The Rp1,140 trillion program, managed by Danantara, is part of the national energy transition.

In Bekasi, the Rp3 trillion Waste to Electricity (PSEL) project officially began in August 2026. The facility in Ciketing Udik, Bantargebang, was designated a National Strategic Project in May 2026 and is expected to address waste issues while providing green energy.

Supporting infrastructure is also continuously being strengthened. The Cisem II gas pipeline, connecting East Java to West Java, entered the trial phase in August 2026. This natural gas transmission pipeline, spanning Batang-Cirebon-Kandang Haur Timur, is part of the National Strategic Project (PSN) in the energy sector to strengthen industrial gas supplies.

Impact of Labor Absorption

Industrial estate development is not only about investment figures, but also about tangible impacts on the community. West Java Governor Dedi Mulyadi emphasized the importance of integrating high schools (SMA/SMK) with industry to increase job absorption.

"Later, the classes will be integrated (with industry)," he said while discussing the program to improve human resource quality.

The BYD Subang factory is a prime example of how major investments can create thousands of jobs. Nearly 9,000 new jobs will be created in the electric vehicle industry, with priority given to local residents with competencies that meet the factory's needs.

However, industrial development also brings challenges. The West Java Provincial Government is currently developing a new Regional Spatial Plan (RTRW) to balance industrial development and environmental preservation.

The goal is to ensure that protected areas remain functional while industrial areas develop sustainably.

The West Java High Prosecutor's Office is also overseeing 13 strategic projects of the West Java Provincial Government in 2026, worth billions to hundreds of billions of rupiah. Regional government agency heads signed integrity pacts to ensure the projects are transparent and deliver tangible impacts to the community.

Going forward, the biggest challenge is ensuring that industrial growth does not compromise environmental quality and the well-being of surrounding communities.

Education-industry integration, infrastructure strengthening, and strategic project oversight are key to achieving West Java's investment target of IDR 314 trillion by 2026.

[Source]

West Java Becomes a New Magnet for Green and Inclusive Investment

AYOBANDUNG.ID - West Java is no longer just a province with significant economic potential; it has become the center of gravity for national investment. Contributing 13% to Indonesia's Gross Domestic Product (GDP) and 23% to the Java Island economy, the province plays a strategic role in the national growth map. However, behind these impressive figures lie complex dynamics that demand a more careful, inclusive, and sustainable investment strategy. One of the most visible indicators of confidence in West Java is the setting of an investment target of IDR 271 trillion by 2025, the highest nationally. As of November, realization had reached IDR 218 trillion. This means the province must quickly reach the remaining IDR 53 trillion target. This figure is not merely an administrative challenge, but a test of absorption capacity, infrastructure readiness, and the reliability of the investment ecosystem. According to Achris Sarwani, Acting Head of the Bank Indonesia Representative Office for West Java, investment is key to driving provincial economic growth to approach 6 percent. In fact, in its medium-term vision, West Java is targeted to achieve growth of up to 7.99 percent by 2028. "In 2028, in line with Mr. Prabowo's astagita, it will reach 8 percent, with 7.99 percent in West Java. So, these figures will be our benchmark for programs, one of which is the West Java Investment Summit (WJIS)," said Achris in Bandung on Friday, November 14, 2025. The 2025 West Java Investment Summit (WJIS) is a concrete example of how West Java is orchestrating investment opportunities. However, more than an annual ceremony, WJIS has evolved into a strategic platform that brings together project owners, global investors, and policymakers in a single ecosystem of dialogue and collaboration. One proof of WJIS's success is the birth of the Majalengka Industrial Estate (KIM) from the 2020 forum. Now, this area serves as an export base for global shoe brand On Cloud, marking a real transformation from discourse to long-term economic impact. "The example the Governor wanted to launch earlier was the export of On Cloud shoes from KIM, or the Majalengka Industrial Estate. KIM was born from the WJIS in 2020. So this is long-term," said Achris. However, this great potential does not come without challenges. One of the main issues is connectivity and investment security guarantees. The Head of the West Java DPMPTSP, Dedi Taufik, emphasized the importance of improving aspects such as thuggery, waste management, and legal certainty. "The Governor himself stated earlier that there must be connectivity in this investment. Furthermore, guarantees related to thuggery, waste management, and so on will be addressed by the West Java Provincial Government," Dedi emphasized. The provincial government also recognizes that attracting investors is not enough. What's more important is maintaining their trust through an efficient, transparent, and sustainable ecosystem. The WJIS format, which offers one-on-one project matching, is a concrete step to accelerate investment realization. "Thank God, we have a regional leader, Mr. KDM, who is committed to maintaining West Java as a comfortable place for investors," said Achris. In the 2025 West Java Investment Challenge (WJIS), 104 projects were offered with a total value of IDR 186.29 trillion. Fourteen partnership commitments and memorandums of understanding (MoUs) were signed between companies and local governments, reflecting investors' commitment to seizing the opportunities offered. Through the 2025 West Java Investment Challenge (WJIC), the six best projects from selected regencies/cities were announced. These projects reflect the diversification of investment sectors, from public infrastructure to the circular economy, and demonstrate the increasing quality of regional investment proposals. "Previously, during the Challenge, several regencies/cities offered investments, including infrastructure, agribusiness, and agriculture, which we have already accommodated. We hope that this one-on-one meeting will yield an agreement to reflect this investment in West Java," said Dedi. Although West Java's economic growth slowed slightly from 5.23 to 5.2 percent, the province remains ahead of the national average of 5.12 percent. This demonstrates West Java's relatively strong economic resilience amidst global pressures. Meanwhile, Bank Indonesia is strengthening the investment ecosystem through three main pillars: macroeconomic stability, sustainable financing, and payment system digitalization. The implementation of Local Currency Transactions (LCT) and Cross-Border QRIS (Qualifying Transaction System) is a crucial instrument in accelerating cross-border transactions safely and efficiently. "Indonesia's economic fundamentals remain strong, marked by maintained growth, inflation within the target range, and excellent exchange rate stability," said Ricky P. Gozali, Member of the Board of Governors of Bank Indonesia. Support also came from the central government. Rakhmat Yulianto, Director of Promotion Development at the Ministry of Investment and Downstream Investment Coordinating Board (BKPM), emphasized that West Java is the number one investment destination in Indonesia and has great potential to become a model for a sustainable economy. "I do see an opportunity to improve West Java's sustainable economy, and this aligns with current global trends that demand sustainable investment," he said. The transformation towards green and inclusive investment is not only a global demand but also a local need. Projects such as food security in Sumedang, agro-industrial innovation in Garut, and the circular economy in Purwakarta demonstrate that West Java is beginning to reorganize its sectoral priorities. However, to ensure this potential remains on paper, consistency in implementation, courage in reform, and sustainability in policy are needed. Investment is not just about capital, but also about trust, vision, and a commitment to the future. WJIS 2025 symbolizes this commitment. But more than that, this forum is a reminder that true investment is one that creates long-term value for the economy, the environment, and society. "WJIS 2025 is not just a forum, but rather a manifestation of a shared commitment to making West Java a green and inclusive investment hub in Southeast Asia," said Achris. [SOURCE]

Dec, 31 2025

Collaboration between West Java BUMN and BUMD Encourages Optimization of Hazardous Waste Incinerators in West Java

TRIBUNJABAR.ID, BANDUNG – West Java BUMD PT Jasa Medivest, which has been active for more than 18 years as a medical Hazardous and Toxic Material (B3) waste management company in West Java, is intensively innovating. One of the important initiatives is the optimization of the first incinerator machine, which aims to increase waste processing capacity to reach the latest standards, without ignoring the regulations in force in Indonesia. This optimization will start in 2023, with approval from the shareholders of PT Jasa Medivest and the Indonesian Ministry of Environment and Forestry (KLHK). One important step is the installation of pre-treatment equipment in the form of a mixing tank, which is the main requirement to meet the engineering standards being sought. A number of tests have been carried out, including trial burning tests and commissioning tests carried out by certified laboratories from the Ministry of Environment and Forestry. Currently, PT Jasa Medivest is just waiting for the issuance of an Operational Feasibility Letter from the Ministry of Environment and Forestry to immediately start processing industrial B3 waste in West Java. "Initially, PT Jasa Medivest was only able to process 14 waste codes. Remembering that if you only focus on processing B3 medical waste, business saturation will occur. "So, by optimizing the second incinerator machine at the Dawuan plant, we will be able to process B3 medical and B3 industrial waste with a total of 55 waste codes, of course there are waste proportion standards that need to be met," said Beni Cahyadi, Director of PT Jasa Medivest, in an official release Monday. (30/9/2024). PT Jasa Medivest's business opportunities will be optimal if accompanied by investment funding support for these optimization needs. After collaborating with strategic partners, PT Jasa Medivest succeeded in obtaining funding support from BRI through investment credit facilitation. “We see potential for strategic business development. "PT Jasa Medivest has proven its professional commitment for dozens of years, and the huge opportunity for proper management of B3 waste in Indonesia is certainly the rationale for BRI to support financing in the form of investment credit," said Dhinar Adi Nugroho, Branch Manager of BRI (Persero) Tbk Kiaracondong. The signing of the investment credit agreement took place on Thursday, September 12 2024. Present on this occasion were Beni Cahyadi as Director of PT Jasa Medivest, Dhinar Adi Nugroho from BRI, and Dr. Ranti Fauza Mayana, S.H. as a notary. Responding to the challenges of future business growth, this synergy between BUMN and BUMD is one of the implementations of the 3C spirit (Comply, Competitive, Care), which is an important basis for PT Jasa Medivest as a subsidiary of West Java BUMD to achieve its goals. After the second incinerator is able to process industrial B3 waste, PT Jasa Medivest plans to continue business development by submitting technical approval regarding the optimization of the first incinerator to the Indonesian Ministry of Environment and Forestry. "We will adapt the technology, so that we can manage up to 200 B3 waste codes, and the total capacity of the two incinerator machines will increase from 24 tonnes per day to 30 tonnes per day," continued Beni Cahyadi. Through commitment and technological innovation in managing medical and industrial B3 waste, PT Jasa Medivest strives to ensure sustainable productivity. "So that it is optimal to achieve wider market coverage, present as a B3 waste management solution, and of course develop economic useful value as a West Java BUMD entity," he concluded. (SOURCE)

Oct, 01 2024

WJIS 2024: 5 Projects Sign MoU During Opening Ceremony

Bisnis.com, BANDUNG -- Bank Indonesia West Java is holding the West Java Investment Summit (WJIS) again for the 6th time in 2024. Head of the Bank Indonesia West Java Representative Office, Muhamad Nur, said that this year's WJIS event will offer more and more projects to domestic and foreign investors. So it is hoped that this investment absorption will encourage an increase in West Java's economic performance and of course leverage the national economy. What's interesting, when the opening ceremony was held, there were already five projects that had entered into a Memorandum of Understanding (MoU) with investors. "Thank God, the 6th WJIS 2024 has quite a lot of projects, and that at the opening alone there were already five MoUs and later there will be a one on one meeting and this process is in collaboration with DPMPTSP," he said, after opening the WJIS with the theme "Unleashing West Java Investment Potencies", at the Trans Convention Center, Thursday (19/9/2024). The five parties who have entered into the MoU are CV Menata Citra Selaras, PT Tirta Gemah Ripah, PT Tigalapan Investama Group, PT Migas Utama Jabar and PT Subang Energi Abadi. Nur said, before today, his party together with the West Java Provincial Government had already implemented a number of steps. Namely, the West Java Investment Challenge, preparation of a feasibility study, West Java Investment Roadshow, and finally WJIS. "The next stage is also one on one meetings, so that more investors will come and more will realize the investment we are offering," he said. He is optimistic that if the investment climate conditions in West Java can continue to be maintained and even improved, then the economy in West Java will continue to grow. (SOURCE)

Sep, 23 2024

Dedi Mulyadi's Popularity High, Hotel Occupancy in West Java Plummets

A recent survey by the Indonesian Survey Institute (Lembaga Survei Indonesia / LSI) shows that the majority of the public holds a positive view of the West Java Provincial Government’s performance across various sectors. However, economic observers and business players argue that this outcome does not align with the reality of widespread layoffs and millions of residents trapped in poverty. LSI announced its survey findings on Thursday (July 23, 2026). The survey was conducted from July 2–9, 2026, involving 800 respondents living in West Java. Respondents were at least 17 years old or married at the time of the survey. They were selected using a multistage random sampling method across 27 regencies and cities in West Java. With this sample size, the survey carries a margin of error of approximately ±3.5% at a 95% confidence level. Data collection was conducted through face-to-face interviews by trained interviewers. The survey findings show that the public evaluated the West Java Provincial Government’s performance positively across multiple sectors. Satisfaction levels exceeded 50% in all surveyed aspects, including infrastructure and basic services. Meanwhile, the economic sector received the lowest satisfaction score, although it was still generally appreciated. The majority of respondents rated West Java's economic condition in the moderate category at 44.3%. Meanwhile, 27% of residents rated the economy as good, and 28.3% rated it as poor. Regarding public administration, the West Java Provincial Government received positive scores. 60.2% of respondents rated governance performance as good to very good, 30.4% rated it as moderate, and 8.1% rated it as poor to very poor. The survey also revealed that 95.4% of respondents were satisfied with the performance of West Java Governor Dedi Mulyadi. In contrast, the satisfaction rate for Vice Governor Erwan Setiawan trailed significantly behind Dedi at 59.1%. Disconnect from Field RealitiesAcademic and economic observer from Pasundan University Bandung, Acuviarta Kartabi, stated on Friday (July 24, 2026) that the high level of public satisfaction with the provincial government and governor represents an anomaly when compared to conditions on the ground. According to him, high unemployment rates, poverty issues, widespread layoffs, and weak public purchasing power do not reflect significant economic recovery. Data from the West Java Central Statistics Agency (BPS) indicates that 1.77 million people in the province were still unemployed as of November 2025. Meanwhile, the poverty rate in West Java stood at 6.78%, or approximately 3.55 million people. Throughout 2025, Ministry of Manpower data recorded 18,815 workers laid off in West Java. From January to May 2026 alone, another 5,044 workers faced layoffs in the province. "The survey results should be viewed as an indicator of public perception rather than a complete picture of real conditions. Therefore, these findings need to be cross-checked with objective data such as poverty figures, job creation, and the effectiveness of inflation control programs," he explained. Chairman of the Indonesian Hotel and Restaurant Association (PHRI) West Java, Dodi Ahmad Sofiandi, revealed that West Java's hospitality sector continues to face challenging conditions. Hotel occupancy rates, for instance, remain stagnant and even tend to decline. He noted that ceremonial local government events and long holiday periods amidst the current economic climate have been unable to push hotel occupancy up to 70%. Currently, there are 550 registered members of PHRI West Java, covering both restaurants and hotels. "The number of our members has dropped drastically from 1,495 down to just 550. Occupancy rates for budget hotels (hotel melati) stand at only 25%, while star-rated hotels reach a maximum of 60%," Dodi revealed. Personality FactorExecutive Director of LSI, Djayadi Hanan, explained that high public satisfaction with the West Java Governor is driven not only by performance evaluations of the government, but also by Dedi Mulyadi’s personality as a regional leader. According to him, three main factors shape positive public perception. First, the majority of residents view economic conditions as moderate or fair. Second, the administration of the West Java Provincial Government is rated positively by most respondents. Third, the public favorably evaluates various government programs and services, ranging from infrastructure, education, and health to cooperative empowerment. "As a recommendation, the government needs to step up by introducing targeted programs for those feeling the economic strain the most, specifically the middle and lower-income classes," he concluded. [Source]

Jul, 27 2026

Prabowo Urges Major US Companies to Increase Investment in Medical Equipment in Indonesia

jabar.jpnn.com, BOGOR - President Prabowo Subianto invited the American multinational company, General Electric (GE), to increase investment in medical equipment production in Indonesia. Prabowo made the invitation while attending the Gala Iftar Dinner Business Summit in Washington, DC, on Wednesday evening (February 18th) local time. In an audio recording received in Jakarta on Thursday (February 19th), he assessed the opportunities for broader cooperation with the establishment of ten new universities based on science, technology, engineering, and mathematics (STEM) and medicine in Indonesia. "I think there are also opportunities for the United States. I think General Electric is building medical equipment in Indonesia, and we hope they will increase their production," Prabowo said. Addressing the American business community, the President explained that Indonesia still faces a shortage of around 140,000 doctors. Meanwhile, the number of medical graduates each year is only around 10,000. "This means it will take around 14 years to close the gap, unless there are concrete new efforts. That's why I'm creating 10 new universities based on STEM and medicine," he said. Previously, during a state visit to the UK, Prabowo also designed a framework for educational cooperation through the construction of ten new campuses in the fields of medicine and STEM, including a lecturer exchange program with educational institutions in the UK. According to Prabowo, increasing the number of medical campuses and medical graduates will open up opportunities for greater collaboration with global companies, including GE, particularly in the development and production of medical equipment domestically. He also emphasized the government's commitment to supporting the influx of new investment. Prabowo mentioned that several bureaucratic obstacles previously complained about by investors have been resolved. "We will support it. There were bureaucratic obstacles, but we resolved them very quickly. I also received feedback a few hours ago from several corporations complaining about the slow resolution of their problems," Prabowo said. The government hopes that increased investment in the medical device sector will strengthen the independence of the national industry and support the fulfillment of Indonesia's healthcare needs. [SOURCE]

Feb, 20 2026

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