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 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.
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.
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.
Railway
Total Length : 1,557 km, Operation: 894 km, Non Operation: 663 km, Single Track: 351.28 km, 542.72 km
Airport
2 International Airports
• Ahmad Yani Semarang
• Adi Sumarmo Solo
Electricity System
Installed capacity in Central Java: 7.303,97 MW Additional power plant which is still under construction (7.483 MW)
Industrial Park
There are 5 industrial park in Central Java with Direct Construction Investment Facilities
Toll Road
300,090 km (Pejagan-Pemalang-Batang-Semarang-Solo-Mantingan) a. 25,26 km (Semarang-Demak) b. 71.56 km (Yogya-Bawen)
Seaport
2 International Seaport
• Tanjung Emas Semarang
• Tanjung Intan Cilacap
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.
| 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 |
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.
| 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 |
| 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 | |
