News - West Java Regional House of Representatives Urges PT Sangga Buana to Become an Investment Holding Company to Boost Locally-Generated Revenue

West Java Regional House of Representatives Urges PT Sangga Buana to Become an Investment Holding Company to Boost Locally-Generated Revenue

Aug, 26 2026

INILAHKORAN.ID – The West Java Regional House of Representatives (DPRD) holds high hopes for the establishment of PT Sangga Buana (Perseroda), a regional investment holding company currently being deliberated by Special Committee (Pansus) XVIII on the Draft Regional Regulation (Ranperda).

West Java DPRD Member Daddy Rohanady expressed that the parent company must prove itself as a new instrument to boost investment and increase Regional Original Revenue (PAD).

According to Daddy, the initiative launched by West Java Governor Dedi Mulyadi aligns with efforts to strengthen the region's economic competitiveness through broader investment networks.

“When KDM (Dedi Mulyadi) launched the discourse of creating Sangga Buana as an investment holding company, I truly placed high hopes on it. After all, Danantara at the national level has proven that such models can indeed generate revenue,” Daddy stated when contacted by INILAHKORAN.ID on Wednesday (Aug 26, 2026).

However, he reminded that the success of PT Sangga Buana will ultimately be measured by tangible results rather than mere concepts or discourse.

“If people express skepticism, that is normal. Indonesians need proof, not just ideas. So now we wait to see what results Sangga Buana will deliver,” he said.

Daddy believes the holding company could open wider doors for collaboration, including with international investors, while showcasing West Java's economic potential.

“I agree with the spirit behind it. It serves as a way to build networks, hopefully international ones so people pay attention to West Java. We hope this exposes available opportunities and generates additional revenue streams for PAD,” he added.

26 BUMDs Will Not Be Dissolved
Regarding the integration of 26 regional state-owned enterprises (BUMDs) into PT Sangga Buana, Daddy emphasized that this move does not mean liquidating or dissolving existing companies.

He noted that the integration process must begin with a comprehensive due diligence audit of all BUMDs slated to fall under the holding umbrella.

“We hope that prior to December (2026), they will complete due diligence on the 26 companies set to be consolidated under Sangga Buana. But that does not mean the current boards of directors will be dismissed. This is a holding structure think of it as establishing a corporate headquarters at the top,” he clarified.

According to him, the holding entity focuses on strengthening governance and business development rather than completely replacing existing operational management.

“Just as electing a president does not mean firing all governors, the same logic applies here. While strict evaluations will certainly take place, it does not imply wiping entities out,” he noted.

Initial Capital of IDR 125 Billion to Attract Investment
PT Sangga Buana is projected to receive a total regional capital injection of IDR 500 billion, disbursed incrementally through 2031. For the initial phase, the West Java Provincial Government plans to allocate IDR 125 billion via the 2027 Regional Budget (APBD).

Daddy explained that this capital is intended to strengthen the parent entity so it can attract new investment, rather than being disbursed directly to individual BUMDs.

“Aside from the IDR 125 billion, we are not allocating extra funds. We expect the holding company to leverage this initial capital to attract external investments both foreign direct investment (PMA) and domestic capital (PMDN),” he said.

He hopes the incoming investments will rehabilitate underperforming BUMDs, enabling them to make a larger contribution to the local economy.

“If the injected companies recover and turn healthy shifting from a struggling state to financial health across the 26 entities—it will circulate capital within West Java and expand profit margins,” he said.

Multi-Term Capital Injections
Regarding the capital injection scheme extending through 2031 across future gubernatorial terms, Daddy stated that multi-year financing is a standard practice in regional development.

He cited capital injections for Kertajati West Java International Airport (BIJB) as an example, which continued across multiple administration changes.

“Multi-year capital injections are common. Look at Kertajati BIJB since the era of Governor Aher it has continued across several governors, provided statutory conditions and financial capacity allow it,” he stated.

Daddy concluded that sustained capital funding must be accompanied by continuous performance improvements to ensure regional revenue goals are met.

“Logically, when capital injections proceed according to plan, we expect Regional Original Revenue to increase accordingly,” he concluded.

[Source]

ESDM Mentions New Rules for Electricity Project TKDN to Make EBT Investment Easier

JAKARTA - The government released a new regulation regarding the provisions of the level of domestic components (TKDN) in electricity projects. This new regulation is said to facilitate investment in the development of new renewable energy (EBT). The latest TKDN regulation is contained in Ministerial Regulation (Permen) ESDM No.11 of 2024 concerning the Use of Domestic Products for Electricity Infrastructure Development. Director General of New Renewable Energy and Energy Conservation (EBTKE) of the Ministry of Energy and Mineral Resources (ESDM) Eniya Listiani Dewi said that in the regulation, EBT projects funded by foreign grants or foreign loans are no longer required to include TKDN in tender documents. "What is important in this regulation is that foreign grants are not required to include TKDN in bidding documents," Eniya told Bisnis, Tuesday (6/8/2024). So far, the obligation to include TKDN is said to have hampered the funding of a number of EBT power plant projects. Based on Bisnis records, there are at least 14 EBT power plant projects that are constrained. Four of the projects already have funding agreements from the Asian Development Bank (ADB), World Bank, Japan International Cooperation Agency (JICA), and other financing institutions with a total investment commitment of more than US$1 billion. The four projects include the Cisokan Hydroelectric Power Plant (1,040 MW), Huluais Geothermal Power Plant (110 MW), Kumbih Hydroelectric Power Plant (45 MW) and Sawangan Hydroelectric Power Plant (16.6 MW). Meanwhile, there are 10 other projects that have not reached agreements with lenders regarding the provisions of the TKDN clause in the power purchase agreement (PPA) with PT Perusahaan Listrik Negara (Persero) or PLN. Meanwhile, the obligation to include TKDN was previously regulated in Minister of Industry Regulation (Permenperin) Number 54 of 2012 concerning Guidelines for the Use of Domestic Products for Electricity Infrastructure Development. Simultaneously with the issuance of Permen ESDM No.11 of 2024, the Ministry of Industry issued Minister of Industry Regulation (Permenperin) No. 33 of 2024 which revoked Permenperin No. 54 of 2012. "The issue of constraints for PLTP and PLTA is in international funding, which previously according to Permenperin No. 54 must include TKDN in the bidding document. Now it has been revoked," Eniya explained. Not only grant projects or foreign investments, according to Eniya, Permen of ESDM No.11 of 2024 also makes it easy to fulfill TKDN for investment in other EBT projects. "Even if it is not a grant or foreign investment, it is easier to implement because the threshold is easier to achieve," he said. Meanwhile, the threshold for EBT project TKDN will be regulated in a derivative regulation in the form of a Decree of the Minister of Energy and Mineral Resources which will be stipulated in the next few days. "The TKDN of industrial product components remains in accordance with the revised Permenperin. However, the TKDN of combined EBT project goods and services has been calculated and this greatly facilitates investment," said Eniya. SOURCE

Aug, 07 2024

Investment in West Java is the Highest in Indonesia in the First Quarter of 2024

Investment in West Java is again ranked first nationally in the first quarter of 2024. Investment entering West Java is dominated by the processing industry. Head of the West Java DPMPTSP, Nining Yulistiani, said that the total investment coming into West Java until the first quarter of 2024 reached IDR 64.7 trillion and was the highest in Indonesia. "This first quarter, West Java investment ranked first in Indonesia, namely IDR 64.7 trillion," said Nining in Bandung, Thursday (16/5/2024). Nining detailed that the investment value of IDR 64.7 trillion consisted of IDR 23 trillion of Domestic Investment (PMDN) and IDR 41 trillion of Foreign Investment (PMA). "With a composition of IDR 23 trillion PMDN, IDR 41 trillion PMA. If you look at the composition, the processing sector is in first position, so the growth is good," he explained. According to him, the high investment value is driven by a number of factors such as developed infrastructure, a large market and guaranteed political stability. Until the end of 2024, Nining said that the processing industry sector, especially the automotive sector, will still dominate incoming investment in West Java. In fact, according to him, investors from China and Vietnam have also looked for places to invest their capital in West Java. "Several investors from various countries are interested in investing in automotive, China and Vietnam have conveyed information to us. China has already obtained land, Vietnam is still in the process of searching for land," he concluded.

May, 20 2024

PT Nippon Shokubai Indonesia Allocates IDR 1.69 Trillion to Complete Phase Four Construction in 2025

Cilegon, September 12, 2024—Minister of Investment/Head of the Investment Coordinating Board (BKPM), Rosan Roeslani, expressed his appreciation for PT Nippon Shokubai Indonesia's commitment to developing the petrochemical industry in Indonesia. In 2025, the company will begin construction of the fourth phase in Cilegon and is expected to be operational by 2027. "I appreciate Nippon Shokubai, which has been investing since 1996. I arrived during the fourth phase (construction) with an expansion value of approximately IDR 1.69 trillion (USD 110 million)," he said during a visit to PT Nippon Shokubai Indonesia's facilities in Cilegon, Banten Province, to review the progress of the Japanese company's investment in Indonesia. He stated that the Indonesian government is closely monitoring existing investments in the country. He added that not only new investments but also existing ones must be properly maintained. "This is being done to serve as a word-of-mouth marketing tool for other investors to invest in Indonesia," explained Rosan. History of Nippon Shokubai Indonesia's Commercialization Data from the Ministry of Investment/BKPM records that PT Nippon Shokubai Indonesia first began commercial production in 1999 with its first facility. Since then, the company has continued to expand, with a second facility starting commercial operations in 2014 and a third in 2023. This expansion, he continued, is expected to not only have an impact on the company but also a positive impact on the surrounding community. "In this fourth phase, construction is planned to begin in 2025, and production is expected to begin in 2027. This will also increase the role and human resources in Cilegon, allowing it to grow and develop. The government has vocational and training programs to support this," Rosan added. Previously, PT Nippon Shokubai Indonesia announced plans for its fourth industrial expansion with an investment of approximately IDR 1.69 trillion (USD 110 million). Construction of this new facility will begin in 2025 and is planned to begin commercial production in 2027. This fourth facility will focus on producing Indonesia's first Superabsorbent Polymer (SAP), with a production capacity of 50,000 tons per year. SAP products are crucial in the manufacturing industry, especially for products such as diapers, sanitary napkins, and other items that require high absorbency. "As long as they are within the legal framework, we will fully support and facilitate Nippon Shokubai's investment. The government also has a Super Tax Deduction program, which offers tax incentives of up to 200%," Rosan added. This visit reaffirms the government's commitment to continuously encouraging foreign investment that can add value to the national industry and create jobs. Total Japanese investment in Indonesia over the past five years has reached more than USD 19 billion, with key sectors including the automotive industry, electricity and gas, housing, and industrial estates. PT Nippon Shokubai Indonesia is a successful example of how Japanese companies continue to strengthen their presence in Indonesia through sustainable investment. [SOURCE]

Dec, 30 2025

15 Downstream Megaprojects to be Implemented This Year, With or Without Foreign Investment

BOGOR, investor.id – President Prabowo Subianto revealed that the government is committed to continuing the downstreaming program initiated by the 7th President of the Republic of Indonesia, Joko Widodo. A total of 15 megaprojects will begin in 2025 with a jumbo value. “The program initiated by Mr. Jokowi, we will continue our downstreaming, we will realize it. We will start this year. This year, at least 15 projects, megaprojects worth billions of dollars,” said Prabowo in his remarks at the 17th Anniversary of the Gerindra Party at the Sentul International Convention Center (SICC), Bogor, Saturday, (2/15/2025). Prabowo stated that the 15 megaprojects will be carried out without begging for investment from foreigners. However, the government is still open to opportunities if foreign investors are interested. “We will start without begging for investment from abroad. We will realize Bung Karno's ideals: standing on our own two feet. We will not beg,” he said. "There are those who come from outside, we say, please. You want to enter Indonesia, we are open. But we will not beg. We will rise with our own strength," he added. On the other hand, the government will launch an Indonesian investment management agency called Daya Anagata Nusantara (Danantara) on February 24, 2025. "On February 24, nine days from now, we will launch an Indonesian investment fund that I named Danantara," he added. Investment Value of IDR 2,000 T Finally, Prabowo asked former presidents, Joko Widodo, Susilo Bambang Yudhoyono (SBY), Megawati Soekarnoputri and religious organizations to participate in supervising Danantara because it has state assets. "And we must guard this together. Therefore, I ask all presidents before me to be willing to participate as supervisors in this fund. I also think, if necessary, the NU leadership, Muhammadiyah leadership, perhaps leaders from KWI and some others, also help supervise so that this is the people's money, this is the money of our children and grandchildren," he concluded. Previously, the Indonesian government through the Task Force for the Acceleration of Downstreaming and National Energy Resilience had mapped out a number of downstream projects. These projects will soon be offered to a number of investors. Deputy Minister of Energy and Mineral Resources (ESDM) Yuliot Tanjung revealed that there are approximately 35 downstream projects from a number of sectors. Meanwhile, the value of the project is approximately US$ 123.8 billion or around Rp 2,012 trillion (assuming Rp 16,260 per US dollar). "The Task Force has identified and prepared 35 projects with a value of around US$ 123.8 billion. It is still being prepared and consulted with ministries/institutions," said Yuliot when met at the ESDM Ministry Office, Jakarta, Friday (2/14/2025). [SOURCE]

Apr, 09 2025

The 2026 West Java Porprov Venue in Bekasi City is Claimed to be 98 Percent Ready.

The Bekasi City Government has ensured the readiness of venues and infrastructure for the 2026 West Java Provincial Sports Week (Porprov), which will take place from November 7-20. As the main host, Bekasi City claims that almost all competition facilities are ready for use. The Head of the Bekasi City Youth and Sports Agency (Dispora), Arwani, stated that Porprov venue readiness is currently around 98 percent. The majority of the competition venues are located at the Patriot Candrabhaga Stadium (PCB) in South Bekasi, which will be the center of West Java's largest sporting event. "The infrastructure, facilities, and venues are 98 percent ready. The Patriot Candrabhaga Stadium complex was built from the start to support various large-scale sporting events," said Arwani. According to him, Bekasi City will host competitions for approximately 37 sports or 49 sub-sports. Most indoor sports will be centered at the Patriot Candrabhaga Stadium, while other venues are spread across several districts. The sports that will be contested in the stadium area include volleyball, badminton, soccer, roller skating, and several martial arts disciplines such as wushu, muaythai, and kickboxing. Arwani assessed that Bekasi City's readiness is on par with that of other regions co-hosting the 2026 West Java Porprov, namely Bogor City and Depok City. In fact, he continued, the Bogor City Government had visited Bekasi City to directly observe the readiness of the venues. "Compared to other regions, we are just as prepared. In fact, yesterday, Bogor City came here to inspect the readiness of our venues," he said. Despite being the main host, several sports will still use venues outside Bekasi City to accommodate the needs of the competition venues. Rowing, for example, will be held at Lake Cipule, Karawang, while sailing will take place in Indramayu. In addition to focusing on venue readiness, the Bekasi City Government also aims to make the 2026 West Java Porprov the best in history. Various improvements to supporting facilities and preparations for the opening ceremony are being finalized ahead of the upcoming November event. "We want this Provincial Sports Week (Porprov) to be a legacy for Bekasi City. Not only in terms of success in terms of achievements, but also in terms of successful implementation," Arwani concluded. [SOURCE]

Jun, 12 2026

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