News - West Java pursues investment target of IDR 270 trillion in 2025

West Java pursues investment target of IDR 270 trillion in 2025

Mar, 17 2025

Bandung (ANTARA) - The West Java Provincial Government is pursuing an investment target of up to IDR270 trillion to boost the province's economic growth by 5.6 percent in 2025.

"Reflecting on the economic growth target in 2025 of 5.6 percent, the calculation is that our investment must reach IDR270 trillion. Of course by encouraging other sectors such as exports, imports and consumption," said Head of DPMPTSP West Java Nining Yuliastini, at Gedung Sate Bandung, Tuesday.

According to Nining, West Java's investment achievement in 2024 amounted to IDR251.14 trillion, successfully absorbing around 383,000 workers. With a higher investment target in 2025, Nining is confident that it will be directly proportional to higher workforce absorption.

To that end, efforts are needed to increase HR capacity to meet investor needs.

"Investors who have entered have asked for a large number of workers, but of course with the desired specifications. The Job Training Center must be observant in seeing this need," said Nining.

The Rebana area (Cirebon Raya), according to him, will remain a favorite investment destination in West Java because it has extensive land and complete infrastructure support.

"Since Rebana was designated as an industrial area, there has been a three-fold increase in investment in the area," he said.

West Java's 2024 investment is still the highest nationally. With a total investment of IDR 251.14 trillion, the achievement increased by 19.24 percent from the previous year.

Investment realization consists of foreign investment (PMA) of IDR 149.5 trillion and domestic investment (PMDN) of IDR 101.54 trillion.

Investment is centered in five regencies/cities, four of which are in the northern region with an investment portion of 75 percent of the total investment in West Java.

Labor absorption from PMA/PMDN investment is relatively spread out. Most PMA/PMDN investment projects are also in the northern part of West Java.

The small number of projects such as in Bekasi and Karawang Regencies, shows that the investment entering the region is large investment.

"We are optimistic that this year West Java investment will still be the highest nationally," he said.

Deputy Head of the West Java Bank Indonesia Representative Office, Muslimin Anwar, expressed his belief that investment in West Java will grow between 7 and 8 percent from last year.

Drivers of investment growth include conducive domestic conditions after the 2024 Presidential and Regional Elections, as well as the imminent inauguration of regional heads.

"After the regional head is officially inaugurated, investors who are in a waiting position will start to move. So it is hoped that the regional head will support the steps to increase investment in West Java, especially in making regional regulations," he said.

Muslimin is also optimistic that West Java will continue to be an investment magnet after Indonesia's global competitiveness level rose to rank 27 (IMD World Competitiveness Ranking).

"We have never been in this position, meaning that global trust has improved, ease of licensing and we are considered quite efficient in managing investment licensing," he said.

[SOURCE]

Investment Flows Strongly, Dedi Mulyadi Confident Job Opportunities Will Grow

RMOLJABAR West Java Governor Dedi Mulyadi is optimistic that West Java's employment situation will begin to improve in 2026. This confidence stems from the rapid influx of large-scale investments that will soon be realized and are projected to create thousands of new jobs. According to data from the 2025 Investment Activity Report (LKPM), 31 Foreign Direct Investment (PMA)-based industries and 21 Domestic Direct Investment (PMDN)-based industries will begin construction of new factories and businesses in 2026, each with an investment value exceeding IDR 100 billion. Some of the largest foreign investors are in the electric vehicle sector and its supporting industries, such as BYD Auto Indonesia, Contemporary Amperex Technology Indonesia Battery (CATL), and VinFast Automobile Indonesia. The entry of these global companies further solidifies West Java's position as a key hub for the development of the national electric vehicle ecosystem. In addition to the automotive industry, investment is also flowing into the consumer goods and pharmaceutical industries through the expansion of Unilever Indonesia, Shell Manufacturing Indonesia, Epic Medical Solutions, and other pharmaceutical raw material and medical device manufacturers. The textile and footwear sector also remains attractive, with investors such as Changshin Reksa Jaya, Victory Chingluh Indonesia, and Sing Wealth Textiles. On the domestic investment side, strengthening activity is also reflected in 21 domestically invested companies scheduled to begin operations in 2026. These investments span the food and beverage, automotive, building materials, chemicals and plastics, textiles, and construction and manufacturing support industries. Several local companies with significant investments include Indofood CBP Sukses Makmur, Handal Indonesia Motor, National Assemblers, and Polytama Propindo. Meanwhile, in the building materials and construction sector, investments are being made by Wijaya Karya Industri & Konstruksi, Jaya Beton Indonesia, and Pan Asia Jaya Abadi. Dedi Mulyadi stated that the growth of these new industries will have a direct impact on job recovery in West Java, including reducing the number of workers previously affected by layoffs. "Those 15,000 jobs will be recovered in the future with the growth of new jobs," said Dedi Mulyadi in Bandung on Monday, December 22, 2025. According to Dedi, employment issues have often been hampered by licensing obstacles. Therefore, the active role of local governments is key to ensuring investment is not held back and that job creation plans can proceed on target. "If the governor isn't diligent in orchestrating the process, going down to the grassroots level, processing permits, it will escalate to meeting with the minister," he said. He believes that employment dynamics always present both challenges and opportunities. "So, yes, some will stall, but there is also room for entry," he said. Meanwhile, the Head of the West Java Industry and Trade Office, Nining Yuliastiani, added that the realization of this investment will have a significant multiplier effect, from job creation, increasing public purchasing power, to strengthening the regional industrial structure. "With the majority of projects targeted to begin operations in 2026, West Java is projected to remain a major contributor to national investment in the coming years," said Nining. Nining stated that the contributions of the industrial and trade sectors until the third quarter of 2025 showed relatively stable conditions, with varying dynamics in each sector. The industrial sector remains the main contributor, while the trade sector plays a supporting role in distribution and consumption activities. In the first quarter, the industrial sector's contribution was recorded at 40.29 percent, while the trade sector contributed 14.70 percent. This achievement reflects stability at the beginning of the year, with industrial production and trade activities continuing despite still being in a phase of adjusting programs and economic activities. Entering the second quarter, the industrial sector's contribution decreased slightly to 40.06 percent, in line with the trade sector's contribution, which decreased to 14.37 percent. This relatively small decline reflects economic challenges and fluctuations in demand, but does not disrupt the overall stability of the two sectors. In the third quarter, the industrial sector's contribution increased again to 40.94 percent, indicating improved production activity and optimization of industrial development programs. Meanwhile, the trade sector's contribution remained relatively stable at 14.38 percent, indicating a recovery and sustained distribution and trade transaction activity. "Overall, the contribution and investment realization of the industrial and trade sectors from the first to the third quarter of 2025 reflect the resilience of the industrial sector and the stability of the trade sector, which serve as the foundation. [SOURCE]

Dec, 23 2025

West Java Targets 6% Economic Growth by 2026

BANDUNG, investor.id – The West Java Provincial Government is targeting economic growth of 5.5% to 6% by 2026. This optimistic target is driven by massive development activities, particularly infrastructure, which will have a significant impact on increasing labor absorption and industrial production capacity. The Regional Secretary (Sekda) of West Java Province, Herman Suryatman, explained that West Java's current economic growth rate is already above the national average of 5.2%. Herman is confident this positive trend will continue next year. "Next year, we are optimistic that we can reach 5.5% to 6%," Herman said in Bandung, Tuesday (December 9, 2025), as quoted by Antara. Referring to Statistics Indonesia (BPS) data, West Java's economy, based on Gross Regional Domestic Product (GRDP) at current prices in the third quarter of 2025, reached IDR 759.80 trillion and at constant 2010 prices reached IDR 461.90 trillion. West Java's economy grew 5.20% year-on-year (yoy) in the third quarter of 2025. From the production side, the Corporate Services Sector experienced the highest growth at 16.37%. From the expenditure side, the Gross Fixed Capital Formation (PMTB), or investment, experienced the highest growth at 5.27%. According to Herman, achieving the 2026 target requires solidity across all sectors and strong leadership to accelerate development in West Java. In addition to infrastructure and increased investment, West Java's economy will also be supported by strengthening industrial production activities. Herman added that the West Java Provincial Government's revenue realization has currently reached 85% to 90% of the target, and he is confident that this figure can reach above 95% by the end of 2025. West Java's economic optimism is also supported by its solid foreign trade performance. Herman stated that West Java's foreign trade surplus remains strong, as evidenced by the high value of exports. West Java's export performance from January to October 2025 reached US$32.25 billion, representing a 2.31% year-on-year increase. Meanwhile, imports reached US$9.98 billion, a 7.66% year-on-year decrease. Thus, West Java's foreign trade balance recorded a surplus of US$22.27 billion from January to October 2025, and a volume surplus of 3.47 million tons. West Java recorded the largest trade surpluses with the United States, the Philippines, Thailand, and Vietnam. [SOURCE]

Dec, 24 2025

Net Profit in 1Q24 Plunged 21%; BJBR Invested in Securities Reached Rp11.51 Trillion

During the first six months of 2024, PT Bank Pembangunan Daerah Jawa Barat dan Banten Tbk (BJBR) was only able to record a net profit of IDR 725.86 billion or a 21.11% drop compared to Semester I-2023 which amounted to IDR 920.14 billion. Based on BJBR's financial report for the period ending June 30, 2024 quoted on Sunday (4/8), the bank under the control of the West Java Regional Government was able to record revenue and sharia income of Rp7.76 trillion or grew 12.14 compared to the same period in 2023 of Rp6.92 trillion. Unfortunately, BJBR's management failed to optimize the control of interest and sharia expenses in the first half of 2024, which was recorded to swell 29.19% (year-on-year) to Rp4.47 trillion, so that net sharia income and interest became Rp3.29 trillion or fell 4.91% (y-o-y). In the first half of 2024, BJBR recorded other operating income of Rp989.27 billion or an increase of 15.1% when compared to other operating income in the same period in 2023 worth Rp859.47 billion. With other operating expenses amounting to Rp3.33 trillion in H1-2024, BJBR's operating profit amounted to Rp945.04 billion or slipped 14.8% compared to H1-2023 which reached Rp1.11 trillion. BJBR's income statement performance during the first six months of this year was further depressed by other operating expenses (net) which swelled 104.97% (y-o-y) to Rp11.95 billion, so that profit before tax in Semester I-2024 became Rp931.1 billion or fell 15.6% (y-o-y). As a result of income tax expense (net) in the first half of this year amounting to Rp160.17 billion, the profit for the year recorded by BJBR was Rp770.92 billion, or slumped 15.17% (y-o-y). The amount of profit for the year attributable to owners of the parent entity in the first semester of 2024 was IDR 725.86 billion, or a 21.11% drop (y-o-y). As of the end of June 2024, BJBR recorded a loan disbursement of Rp126.95 trillion or only grew 9.16% compared to December 31, 2023 which amounted to Rp116.3 trillion. As of June 30, 2024, total assets were recorded at IDR207.27 trillion, an increase of 10.07% (year-to-date), with cash and cash equivalents of IDR2.93 trillion, a decrease of 17% (y-t-d). The decrease in cash was influenced by the net cash flow used for investment activities amounting to Rp6.82 trillion or soared 360.81% (y-o-y), especially the placement of funds in securities which reached Rp11.51 trillion or soared 327.88% (y-o-y). As of June 30, 2024, total customer deposits amounted to Rp141.04 trillion, an increase of 10.68% (y-t-d), with total liabilities of Rp181.93 trillion, an increase of 11.22% compared to the position as of December 31, 2024 which amounted to Rp163.58 trillion. SOURCE

Aug, 05 2024

Largest Investment Realization in Q2 2024 in West Java & DKI Jakarta

The Investment Coordinating Board (BKPM) reported that the highest investment realization in the second quarter of 2024 took place in the West Java region, reaching Rp63.7 trillion. Furthermore, the region with the second highest investment realization was DKI Jakarta with Rp62 trillion. Then, East Java Rp35.6 trillion, Banten Rp33 trillion, and Central Sulawesi 32.8 trillion. According to BKPM data details, the largest realization of domestic investment (PMDN) took place in DKI Jakarta Rp34.1 trillion or 16.1% of the total PMDN. Then, in West Java amounting to Rp25.6 trillion or 12.1%. “Furthermore, in East Java Rp24.1 trillion or 11.4%, Riau Rp21.8 trillion or 10.3%, and West Nusa Tenggara Rp14.2 trillion or 7.2%,” said Investment Minister/Head of BKPM Bahlil Lahadalia, Monday (29/7/2024). In terms of foreign direct investment, West Java is the region with the largest foreign investment, reaching US$2.5 billion or 17.5% of total foreign investment. Then, Central Sulawesi US$2.1 billion or 14.6%, DKI Jakarta US$1.8 billion or 12.9%. Two regions that also entered the top five foreign investments were North Maluku US$1.7 billion or 12.4%, and Banten US$1.3 billion or 9.3%. In total, BKPM recorded investment realization of Rp428.4 trillion in the second quarter of 2024, an increase of 22.5% on an annual basis (year-on-year / yoy) compared to the same period last year. The figure consisted of foreign investment (PMA) of IDR 217.3 trillion, up 16.6% yoy, and domestic investment (PMDN) of IDR 211.1 trillion, up 29.1% yoy. In terms of region, investment in the Java region was recorded at IDR213.2 trillion or up 27.1%. investment outside Java was IDR215.2 trillion or up 18.3% yoy. SOURCE

Jul, 30 2024

Taufik Nurrohim Highlights West Java's Economic Growth Target of 7.95 Percent in the RPJMD

TRIBUNJABAR.ID - Bandung, June 26, 2025 - Discussions on the West Java Provincial Medium-Term Development Plan (RPJMD) for 2025-2029 have now entered a strategic phase. Through the West Java DPRD Special Committee (Pansus), the document outlining the direction of development for the next five years is being thoroughly analyzed. One of the central issues that has emerged in the discussion is the target economic growth rate (LPE) of 7.95 percent by 2029. This figure has been set to align with the national development direction outlined in the 2025–2029 National Medium-Term Development Plan (RPJMN), which targets an 8 percent economic growth rate nationally. However, for Taufik Nurrohim, S.Psi, a member of the West Java DPRD from the PKB faction who is also a member of the RPJMD Special Committee, this target should not just be a pipe dream on paper. He emphasized the importance of looking at the current economic reality in West Java and the available fiscal capacity of the region. “We must start from reality. Currently, West Java's LPE is at around 4.95 percent in 2024. This means that in the next five years, we want to add almost 3 points — this is a big leap. The question is not only whether it is possible or not, but what must be sacrificed and prepared,” said Taufik. He highlighted that the most obvious challenge lies in the region's fiscal capacity. With limited regional budget space and the dominance of routine spending, it is difficult to imagine that growth can be achieved without actively involving the private sector and investment. Therefore, Taufik emphasized that the key to pushing the LPE to 7.95 percent is the acceleration of productive and inclusive investment. However, accelerating investment is not without obstacles. The unfinished spatial planning process, weak infrastructure support in the southern and central regions, and the low readiness of the local workforce are structural obstacles that must be overcome. Taufik reminded that economic growth will only occur if the main engines of development run in harmony: investment, vocational education, connectivity, and synchronized spatial planning. “Investment is the driving force, but without ready land, suitable labor, and clear licensing, investment will only pile up on paper,” he said. Amid limited fiscal conditions, Taufik also encouraged the optimization of creative financing through the Government and Business Entity Cooperation (KPBU) scheme, the utilization of strategic regional-owned enterprises (BUMD), and the restructuring of regional budget (APBD) programs to focus more on sectors that drive economic growth. In addition to accelerating investment, the DPRD emphasized the importance of equitable growth across regions. According to Taufik, if West Java relies solely on growth from old industrial areas such as Bekasi, Karawang, and Bogor, it will remain trapped in inequality. He urged the RPJMD to encourage the creation of new growth zones in the southern region, the northern coast, and rural areas based on agriculture and tourism. Furthermore, Taufik also noted that high economic growth does not automatically reduce poverty or unemployment if it is not accompanied by structural transformation in the employment sector. He emphasized the need for connectivity between investment plans, the provision of job training, and vocational education reforms that directly address the needs of industry. “We must not pursue large-scale investment, but then bring in workers from outside the region because we are not ready. This means that growth must be closely linked to improving the quality of local human resources,” said Taufik. With this position, the West Java DPRD, particularly through the RPJMD Special Committee, has taken a critical and consolidative stance. The DPRD does not reject big ambitions, but wants to ensure that all policy instruments supporting growth are truly strong, realistic, and can be implemented with the existing APBD structure. “The 7.95 percent target is not something to be feared, but something to be prepared for together. Do not make this figure a political burden, but a strategic challenge that tests the resilience of our development system,” he concluded. [SOURCE]

Nov, 04 2025

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