Minimum Wage

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 1,748,000 (Banjarnegara Regency) to IDR 2,715,000 (Semarang City) in 2020, 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.

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.