Warta Ekonomi, Bandung - West Java was recorded as successful in recording investment realization throughout 2023 of IDR 210.6 trillion, or 112% of the target set by the Ministry of Investment.

This achievement also had a significant impact on the economy of West Java along with the total employment of 253,424 people, with the number of Investment Activity Reports (LKPM) amounting to 94,469 LKPM. With these achievements, supported by maintained household consumption and the performance of leading economic sectors, West Java's economic growth in 2023 is estimated at 4.7-5.5% (yoy).

Deputy Chief Representative of Bank Indonesia for West Java Province, Bambang Pramono, said that success in creating a harmonious investment climate is the key to the realization of West Java investment which will accelerate in 2023.

"This is a necessary condition in creating a conducive and trustworthy investment climate for investors," Bambang told reporters after taking part in Bewara Jawa Barat (BEJA) Vol. 2 with the theme "West Java Investment Report 2023 and Economic Outlook 2024" at Gedung Sate, Bandung City, Tuesday (30/1/2024).

Apart from that, high investment realization also plays an important role in driving West Java's economic growth along with the value of the Incremental Capital Output Ratio (ICOR) which is relatively stable from year to year.

Therefore, all stakeholders related to investment in West Java also need to actively carry out various proactive and innovative efforts in identifying potential projects that are currently of interest to foreign investors, especially for potential investors who are looking for safe and secure investment fund placement options. comfortable.

However, said Bambang, in the future the realization of this superior investment, in addition to competitive ones such as the West Java International Airport (BIJB), it is necessary to make equal distribution efforts throughout the West Java region.

"This is in line with the investment distribution map in West Java which is concentrated in the northern part, such as Bekasi Regency (25%) to Karawang Regency (22%). "Welcoming 2024," he said.

According to him, West Java Province is optimistic about achieving the national investment realization target which is set to increase by 17.9%. In achieving this target, synergy between stakeholders regarding investment in West Java will be further strengthened.

Various investment acceleration programs will also focus on improving sustainable investment policies, competitive investment services and incentives, as well as focusing on value-added and green investment-oriented investments.

Bambang added that the downstream policy is also directed at industries based on regional potential and leading sectors in order to create more jobs and increase the competitiveness of MSMEs in the global value chain.

"With investment performance and support from domestic demand remaining strong in line with increasing community mobility and the high multiplier effect of the political year on the aggregate economy, West Java's economic growth in 2024 is estimated to remain high and be in the range of 4.9% – 5.7% (yoy)," he explained.

Meanwhile, Acting Regional Secretary of West Java Province, Taufiq Budi Santoso, said that the positive achievement of West Java investment was the result of synergy, commitment and support from all parties, including the West Java Provincial Government together with Bank Indonesia West Java.

"This achievement also provides a message to the public that investment is one of the driving forces of the economy in West Java," he said.

On the same occasion, Head of the West Java Province One Stop Investment and Integrated Services Service, Nining Yulistiani, said that nationally, Singapore is the largest investor in Indonesia. Meanwhile, for West Java Province, Japan still dominates investment with a value of IDR 26.65 trillion with more than 6,900 projects. Next followed by Singapore, China, South Korea, Malaysia and the Netherlands.

Meanwhile, several large companies investing in West Java include foreign investment (PMA) such as KCIC with an investment of more than IDR 21 trillion, PT Indah KIA, Elkrim Power (an electric vehicle battery company), Toyota Indonesia and Satellite Nusantara Giga.

"Meanwhile, PMDN is for industrial areas such as Lippo Cikarang, Jasa Marga, food and beverage industries such as Mayora and Gunung Raja Paksi TBK," he said. He added that investment realization in the Rebana area was quite high, namely IDR 17.38 trillion, higher than in 2022.

"Meanwhile, investment in South West Java continues to increase. Investment is IDR 11.8 trillion," he said.

The performance of MSEs in West Java also shows a positive trend with the realization of investment of IDR 48.1 trillion with 700 thousand projects "Of course this is a source of high employment because these MSEs are labor intensive," he concluded.

(SOURCE)