News - West Java Sees Highest Number of Layoffs in Indonesia; Analyst: Large Investments Don't Guarantee Industry Survival

West Java Sees Highest Number of Layoffs in Indonesia; Analyst: Large Investments Don't Guarantee Industry Survival

Aug, 06 2026

TRIBUNJABAR.ID, BANDUNG – West Java recorded the highest number of lay-offs (PHK) in Indonesia from January to June 2026.

Based on data from the Ministry of Manpower, a total of 6,727 workers in West Java lost their jobs during the first six months of this year.

On the other hand, realized investment in West Java reached IDR 138.13 trillion, absorbing 246,887 workers throughout the first semester of 2026.

Responding to these figures, Pasundan University economic observer Acuviarta Kartabi assessed that the high lay-off rate is indeed linked to the large workforce size in West Java.

However, according to him, this factor is not the sole cause, requiring a deeper look into the current condition of the business sectors.

"By profile, West Java has the largest workforce in Indonesia, which correlates with the high number of lay-offs. However, that is not the only explanation," Acuviarta said when contacted by Tribun Jabar on Tuesday (4/8/2026).

Acuviarta pointed to East Java, which has the second-largest workforce in Indonesia. Nevertheless, the lay-off figures in that province were significantly lower than West Java's. He explained that this occurred because East Java's economic structure is more diversified. Beyond maintaining its industrial and trade sectors, the province's agricultural sector continues to serve as a strong pillar for job absorption.

"East Java is not among the top three provinces for lay-offs despite having the second-largest workforce. One reason is that the agricultural sector can still support job absorption alongside its relatively well-maintained industrial and trade sectors," he noted.

In contrast, Acuviarta mentioned that both West Java and Banten face structural challenges in their industrial and trade sectors.

In fact, Banten recorded the second-highest number of lay-offs, even though it does not rank among the top three regions with the largest workforce.

"Lay-offs are indeed connected to a province's workforce size, but that is not always the case—as seen in East Java and Banten. This indicates underlying issues that must be examined further," he stated.

According to Acuviarta, the majority of lay-offs occurred in the manufacturing and retail/trade sectors. This trend signals economic pressures at both the macro and micro levels.

He added that the large volume of investment flowing into West Java has not yet provided sufficient leverage to sustain existing industries or generate enough new jobs.

"West Java's investment realization is indeed the highest in Indonesia. However, what must be evaluated is how effectively that investment leverages worker absorption and ensures the sustainability of existing business sectors," he concluded.

[Source]

Meeting with Kadin to Discuss Investment, Dedi Mulyadi: West Java Must Have Zero Premanism

KOMPAS.com - West Java Governor Dedi Mulyadi received a visit from the Chairman of the Indonesian Chamber of Commerce and Industry (Kadin), Anindya Bakrie, along with his management, including Jayabaya and Erwin Aksa. This meeting discussed a joint commitment to building a better investment climate in West Java. "We as representatives of the people of West Java are very happy with the arrival of the Chairman of Kadin. We are all committed to building an investment climate in West Java," said Dedi Mulyadi in a video uploaded on social media and reconfirmed by Kompas.com, Friday (3/21/2025). Dedi said, to create a good investment climate, his party will take various steps. Among them are eliminating investment levies, eradicating thuggery or zero thuggery, building infrastructure, creating a good employment system, and encouraging entrepreneurs to care more about the environment and the welfare of their employees, including not being late in paying THR. "West Java must be zero thuggery," said Dedi Mulyadi. Dedi also added that he had provided a special policy related to THR for West Java residents. "For me, I have given THR in the form of eliminating vehicle tax arrears," he said. Meanwhile, Kadin General Chair Anindya Bakrie emphasized the importance of West Java's role in the national economy. "West Java can be said to be a barometer for Indonesia. We came here to meet the Governor to ask for input on how Kadin can continue to support West Java, and West Java can provide support for Indonesia," said Anindya. He is also optimistic that if all goes well, economic growth can reach the national target. "I am quite confident that if everything goes well, the economy can grow 8 percent as the President hopes," he added. Dedi Mulyadi closed the meeting with one important note. "All development targets can be achieved if we live in harmony. Kadin is an entrepreneur organization, so everyone must be in harmony," said Dedi, who implicitly alluded to the dualism of leadership within Kadin. [SOURCE]

Mar, 21 2025

West Java Prepares Five Regions for Semiconductor and Data Center Development

The West Java Investment and One-Stop Integrated Services Agency (DPMPTSP) is developing investment clusters across 27 regencies and cities to attract capital-intensive investments in leading sectors, particularly semiconductors and data centers. Head of West Java DPMPTSP, Dedi Taufik, stated that the agency has observed a shift in global investment trends in recent years—from infrastructure-focused investments toward high-technology sectors. “We are implementing a thematic regional investment approach in West Java,” Dedi said on Monday (February 23, 2026). Global Trends: AI and CHIPS Policies Drive Semiconductor Growth By 2025, global investment trends are expected to be dominated by the data center and semiconductor sectors, both of which are experiencing significant growth. Data centers alone are projected to account for approximately one-fifth of the total value of new global investment projects. According to Dedi, the surge in semiconductor project value—often disproportionate to the number of projects—is driven by the rapid expansion of artificial intelligence (AI) and chip sovereignty policies such as the CHIPS and Science Act in the United States, as well as similar initiatives in Europe and Asia. He added that global capital flows are becoming increasingly selective, prioritizing high-value strategic projects rather than conventional factory expansions. Meanwhile, several sectors—including infrastructure, renewable energy, and tariff-sensitive industries such as textiles, electronics, and machinery—have experienced declining investment. Five Regions Prepared Based on investment cluster mapping, five regions in West Java are being prepared as hubs for the development of downstream electronics and semiconductor industries, namely: Bekasi Regency Karawang Regency Subang Regency Purwakarta Regency Sukabumi Regency In addition, West Java is projected to become a national hub for digital economy development and data center investment. Currently, more than 30 companies have already invested in data center projects across the province. The primary locations for data center investments are located in the industrial areas of Bekasi Regency, Karawang Regency, and Purwakarta Regency. By 2025, the Bodekarpur region is expected to record approximately Rp26 trillion in investment in the information and communications sector, while the Greater Bandung region is projected to attract around Rp3.40 trillion. [Source]

Mar, 11 2026

The Ministry of Investment has issued 7 million NIB via OSS throughout 2023

KONTAN.CO.ID - JAKARTA. Ending 2023, the Ministry of Investment/Investment Coordinating Board (BKPM) has issued 7,146,105 Business Identification Numbers (NIB) through the Online Single Submission (OSS) system. The composition of the published NIB consists of 6,887,479 micro businesses, followed by small businesses with 187,402 NIBs, then 23,350 NIBs for medium businesses, and 47,874 large businesses. Special Staff and Spokesperson for the Ministry of Investment/BKPM Tina Talisa expressed her appreciation to all business actors who have processed business permits through the risk-based OSS system. This system is an implementation of the Job Creation Law to provide ease of doing business. “Thank you to Indonesian business actors who are very cooperative. This completely online NIB management cannot run without the willingness and understanding of business actors. The MSEs (micro and small businesses) who dominate the issuance of NIB are truly extraordinary. "We also received a lot of input from business actors to improve the OSS system to make it more user friendly," said Tina in her official statement, Monday (1/1). Tina added that the number of NIBs issued through the OSS system will experience a significant increase in 2023. It has been recorded that more than 2 million NIBs have been issued since the 2nd anniversary of the risk-based OSS system in August 2023. For comparison, throughout 2022 the OSS system issued 2,461,775 NIBs. This means that in the last 5 months it could almost match the NIB issuance in 2022. "We interpret this achievement as a form of awareness among business actors to become formal and a form of increasing trust in the government. "As long as there is an internet connection, business people can take care of NIB from wherever they are, no longer need to come to the DPMPTSP (One Stop Investment and Integrated Services Service) office to meet lots of officers and lots of tables," said Tina. Tina also does not deny that consultation services, both face-to-face and digital, are always needed. This is to help handle questions and/or technical obstacles encountered by business actors. “Currently, OSS issues an average of 13 to 15 thousand NIBs every day. In fact, at certain times it can be more than 50,000 NIB in a day. Meanwhile, the contact center usually receives around 500 telephone calls, a thousand WhatsApp messages and a thousand emails per day. This means approximately 15% of the total NIB issued. "So actually, most business actors can process it independently until the NIB is issued," he explained. As of December 29 2023, the five provinces with the most NIB issuance were West Java 1,276,268 NIB, East Java 1,101,689 NIB, Central Java 835,287 NIB, DKI Jakarta 596,518 NIB, and Banten 347,456 NIB. (SOURCE)

Jan, 12 2024

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

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]

Apr, 09 2025

Purwakarta Regency Government Targets Investment of Rp 11.2 Trillion in 2025

TEROPONGNEWS.COM, PURWAKARTA – The Purwakarta Regency Government is targeting an investment of Rp 11.2 trillion in the 2025 fiscal year. The target was announced by the Head of the Purwakarta Investment and Integrated Services Agency (DPMPTSP), Rian Oktavia, accompanied by the Agency Secretary H. Yadi, when met at his office on Thursday (September 18, 2025) afternoon. Rian explained that the target consists of Rp 5.28 trillion in Domestic Investment (PMDN) and Rp 1.24 trillion in Foreign Investment (PMA). Meanwhile, as of the first half of 2025, investment realization in Purwakarta has reached Rp 6.52 trillion, or around 58.23 percent of the annual target. “Based on the first semester's achievements, we are optimistic that this year's investment target can be achieved and even potentially exceeded,” said Rian. For comparison, in the previous fiscal year, Purwakarta also targeted investments of IDR 11.2 trillion. However, the realization achieved was only IDR 8.12 trillion, or around 72.5 percent of the target. This realization consisted of IDR 4.8 trillion in domestic investment (PMDN) and IDR 3.3 trillion in foreign investment (PMA). According to Rian, the investment achievement in Purwakarta cannot be separated from the improving business climate and the local government's commitment to providing easy licensing and services to investors. "We strive to create a conducive, transparent, and fast investment climate. This is key to making business actors feel comfortable investing their capital in Purwakarta," he added. In addition, the Purwakarta Regional Government is also encouraging investment in strategic sectors, such as manufacturing, infrastructure, tourism, and renewable energy. Rian emphasized that with this strategy, Purwakarta is expected to become one of the main investment destinations in West Java. [SOURCE]

Dec, 11 2025

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