Why Central Java?

Central Java is supported by a conducive investment climate, ranging from good economic growth, improvements on infrastructure, competitive wages and ease of licensing

Economic Growth

Economic Growth

Economic growth in Central Java from 2016 to semester 1 of 2019 showed a relatively positive trend. Economic growth in Central Java in the first half of 2019 amounted to 5.62%, higher than the national economic growth of 5.05%. This is also supported by a decreasing of inflation rate, open unemployment rate, and poverty level.

Investment Performances

Investment Performance

Central Java is the third ranked investment destination for international investors in Indonesia. The investment value in Central Java continues to increase. The total investment in 2018, both Foreign and Domestic, reached IDR 59.27 Trillion, or 126% of the target.

Award

Award

Regarding the investment licensing services, Central Java Provincial Government was awarded as the Best Integrated One Stop Service in the provincial category from Indonesia Investment Coordinating Board in the Investment Award held in Jakarta, 12 July 2018.

Supporting Infrastructures

Supporting Infrastructures

Supporting Infrastructures

Railway

Total Length : 1,557 km, Operation:  894 km, Non Operation: 663 km, Single Track:   351.28 km, 542.72 km  

 

Supporting Infrastructures

Airport

2 International Airports

• Ahmad Yani Semarang

• Adi Sumarmo Solo

Supporting Infrastructures

Electricity System

Installed capacity in Central Java: 7.303,97 MW Additional power plant which is still under construction (7.483 MW)

Supporting Infrastructures

Industrial Park

There are 5 industrial park in Central Java with Direct Construction Investment Facilities

Supporting Infrastructures

Toll Road

300,090 km (Pejagan-Pemalang-Batang-Semarang-Solo-Mantingan) a. 25,26 km (Semarang-Demak) b. 71.56 km (Yogya-Bawen)

 

Supporting Infrastructures

Seaport

2 International Seaport

• Tanjung Emas Semarang

• Tanjung Intan Cilacap

Supporting Infrastructures

Wages

Central Java is considered to be the heart of Javanese culture. The ideal conducts and morals of the courts influence the people tremendously to be soft-spoken, very polite, modest, loyal, and diligent people. This culture has becoming an advantage to the investors. With the minimum wage from IDR 1,610,000 (Banjarnegara Regency) to IDR 2,498,587.53 (Semarang City) in 2019, investors could hire loyal workforce with good qualification in Central Java. Furthermore, Central Java has few labor activists that organize demonstrations, hence there have been relatively few large labor disputes.

Lowest minimum wage : Rp. 1,610,000 (Kabupaten Banjarnegara)

Highest minimum wage : Rp. 2,498,588 (Kota Semarang)

Detail of the Minimum Wage

Kab/Kota Tahun Nilai UMK
Kabupaten Banjarnegara 2019
1,610,000
Kabupaten Wonogiri 2019
1,655,000
Kabupaten Rembang 2019
1,660,000
Kabupaten Brebes 2019
1,665,850
Kabupaten Sragen 2019
1,673,500
Kabupaten Temanggung 2019
1,682,027
Kabupaten Grobogan 2019
1,685,500
Kabupaten Kebumen 2019
1,686,000
Kabupaten Blora 2019
1,690,000
Kabupaten Purworejo 2019
1,700,000
Kota Magelang 2019
1,707,000
Kabupaten Pemalang 1970
1,718,000
Kabupaten Pati 2019
1,742,000
Kabupaten Banyumas 2019
1,750,000
Kota Tegal 2019
1,762,000
Kabupaten Sukoharjo 2019
1,783,500
Kabupaten Purbalingga 2019
1,788,500
Kabupaten Boyolali 2019
1,790,000
Kabupaten Klaten 2019
1,795,061
Kota Surakarta 2019
1,802,700
Kabupaten Karanganyar 2019
1,833,000
Kabupaten Pekalongan 2019
1,859,885
Kota Salatiga 2019
1,875,325
Kabupaten Jepara 2019
1,879,031
Kabupaten Magelang 2019
1,882,000
Kabupaten Batang 2019
1,900,000
Kota Pekalongan 2019
1,906,922
Kabupaten Cilacap 2019
1,989,058
Kabupaten Kudus 2019
2,044,468
Kabupaten Semarang 2019
2,055,000
Kabupaten Kendal 2019
2,084,593
Kabupaten Demak 2019
2,240,000
Kota Semarang 2019
2,498,588
Kabupaten Tegal 2019
1,747,000
Kabupaten Wonosobo 2019
1,712,500
Supporting Infrastructures

Investment Cost

To have references on the cost of doing business in Central Java, here is the tariff of the electricity and water. The electricity is provided by the State Electricity Company, Ltd. (PT. Perusahaan Listrik Negara/PLN). It is a sole off-taker of electricity produced by power plant project all over Indonesia. The end user (household, business, industry, government, social and commercial, buy the electricity from PT. PLN with certain tariff that adjusted each month based on the macro economics condition, such as Indonesian Crude Price (ICP), exchange rate, and inflation rate. While the water is provided by Perusahaan Daerah Air Minum (PDAM), which is a local government-owned company that responsible to provide water supply to meet public needs. Each regency/city in Central Java has its own PDAM, and the water tariff is varied but almost similar.

Electricity

No User Category Code Capacity Tariff (IDR/kVA)
1 Household R-1/TR 450 VA 23500
2 Household R-1/TR 900 VA 26500
3 Household R-2/TR 1300 VA 28200
4 Household R-3/TR 2200 VA 29200
5 Business B-2/TR 2200 VA – 200 kVA 30000
6 Business B-3/TR > 200 kVA 28400
7 Industry I-3/TR > 200 kVA 39500
8 Industry I-4/TR > 30000 kVA 27000
9 Government P-1/TR 2200VA – 14 kVA 32200
10 Government P-2/TR > 14 kVA - 200 kVA 32500
11 Public Road P-3/TR 26000
12 Special Service L/TR,TM, TT 26000

Water

No User Category Consumption Block (IDR/m3)
I II III
0-10m3 11-20m3 > 20m3
1 Type I : Social and Household
Social: Specific (social homes, social foundation) 750 750 1500
Household 1 750 1150 1150
Social: General (worship place) 1500 1500 1500
Household 2 1500 1850 3500
2 Type II : Household and Education
Household 3 2100 2800 4000
Household 4 2800 3500 5600
Education Institution 1 2250 2500 4600
Education Institution 2 2400 2500 4900
Education Institution 3 2500 2500 5200
3 Type III : Government, Business and Industry
Household 5 3000 3750 7000
Government 1 4600 4600 5200
Government 2 4600 4600 5200
Business 1 4600 4600 4600
Business 2 5600 5600 5600
Business 3 5900 5900 5900
Business 4 6750 6750 6750
Business 5 8750 8750 8750
Business 6 9400 9400 9400
Industry 1 7000 7000 7000
Industry 2 9400 9400 9400
Industry 3 12600 12600 12600