Government Pushes Manufacturing Industry Acceleration in Central Java

RRI.CO.ID, Jakarta — The Indonesian government continues to accelerate the manufacturing industry in Central Java to boost the country's economic competitiveness for global investors. This strategic move was emphasized by the Secretary of the Coordinating Ministry for Economic Affairs, Susiwijono Moegiarso, during the Central Java Investment Business Forum (CJIBF) 2026 in Jakarta on Thursday, August 27, 2026.

The manufacturing sector serves as the main backbone of Central Java's economy, contributing 33.18 percent to regional economic growth. Additionally, physical investment, or Gross Fixed Capital Formation (GFCF), in the region reached 31.52 percent, exceeding the national average.

Central Java's economy grew by 5.80 percent in the first semester of 2026, supported by a solid processing industry. Realized investment in the province reached Rp48.54 trillion, which is nearly half of its annual target.

The Kendal Special Economic Zone (SEZ) and the Batang Integrated Industrial Zone (KITB) have become major magnets for foreign investors. The government plans to expand these areas because all currently available land is fully occupied.

“The potential of incoming investors (into the two SEZs) is extraordinary. The land utilization is at 100%, so everything is utilized. We are proposing expansion and development, which still requires a process, but investors are already queuing up. This means Central Java's investment potential is truly enormous. Central Java has two SEZs, and both are experiencing remarkable growth, especially in the manufacturing sector,” Susiwijono explained.

The central government highlighted the importance of clear basic licensing to ensure smooth investment processes. Strong coordination between central and regional governments is continually being improved to resolve operational challenges on the ground.

“The investors' problems are not always ideal (it is not just about licensing), so we design policies early on. In operations, there are always many challenges and obstacles, and they need a place to report their concerns. Therefore, I am opening opportunities for colleagues from Central Java to consult with us. Essentially, there must be a central point for regional governments to address issues, which must be handled by the central government as the regulator and policy authority,” he concluded.