“All the land is fully utilized. We have applied for an expansion, which is still being processed, but investors are already lining up,” said Susiwijono Moegiarso, secretary of the Coordinating Ministry for Economic Affairs, in a statement in Jakarta on Sunday.
He said strong demand underscored Central Java’s investment potential, particularly manufacturing, which accounts for 33.18 percent of the province’s economic output.
Central Java’s economy grew 5.80 percent in the first half of 2026 from a year earlier. Manufacturing’s contribution makes investment and industrial processing crucial to sustaining growth.
“Looking at Central Java’s development, the investment potential remains substantial,” he said.
Central Java recorded Rp48.54 trillion (US$2.73 billion) in investment in the first half of 2026, equivalent to 48.99 percent of its annual target of Rp99.09 trillion (US$5.57 billion).
Foreign direct investment accounted for Rp25.92 trillion (US$1.46 billion), or 53.40 percent, while domestic investment totaled Rp22.62 trillion (US$1.27 billion), or 46.60 percent.
The five areas with the highest investment realization were Semarang City at Rp6.57 trillion (US$370 million), Kendal District at Rp6.56 trillion (US$369 million), and Batang District at Rp6.11 trillion (US$344 million).
They were followed by Temanggung District at Rp4.58 trillion (US$258 million) and Demak District at Rp3.34 trillion (US$188 million).
Susiwijono said Central Java had strong investment prospects, supported by expanding industrial estates and manufacturing’s major contribution to the regional economy.
Gross Fixed Capital Formation, or physical investment, also contributes significantly, accounting for 31.52 percent of Central Java’s economy, above the national share of 29.36 percent.
However, Susiwijono stressed that licensing certainty remains crucial to maintaining investor interest.
He said the central government remains open to consultations with local governments and investors encountering obstacles during the investment process.
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Translator: Bayu Saputra, Raka Adji
Editor: Rahmad Nasution
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