The Secretary of Indonesia's Coordinating Ministry for Economic Affairs recently revealed that the land utilization rate of the Kendal Special Economic Zone (KEK Kendal) and the Batang Integrated Industrial Zone (KITB) in Central Java has reached 100%, with a large number of investors still queuing to enter. The central government is advancing the approval process for the expansion and development of the two parks. The complete exhaustion of land in both parks directly reflects the enthusiasm of manufacturing capital for investment in Central Java. Manufacturing is the largest pillar of the local economy, contributing as much as 33.18% to Central Java's economy. In the first half of 2026, Central Java's cumulative economic growth year-on-year reached 5.80%, with manufacturing investment and industrial development becoming key drivers sustaining local economic growth.
In the first half of 2026, Central Java realized investment of IDR 48.54 trillion, achieving 48.99% of the full-year target of IDR 99.09 trillion. Among this, foreign direct investment reached IDR 25.92 trillion, accounting for 53.40%; domestic investment reached IDR 22.62 trillion, accounting for 46.60%. The top five regions for realized investment were Semarang City, Kendal Regency, Batang Regency, Temanggung Regency, and Demak Regency. Based on the Gross Fixed Capital Formation (PMTB) indicator, Central Java's physical fixed-asset investment contributed 31.52% to the economy, higher than the national average of 29.36%, indicating a solid foundation for physical industry investment.
He stated that Central Java, relying on mature industrial parks and a robust manufacturing base, has very promising investment prospects. However, he also pointed out that investment realization is not just a matter of the approval process; the actual operational phase of projects will still face various practical obstacles. The central government has established special consultation and communication channels to facilitate support for local governments and businesses encountering difficulties in investment. Investment-related regulations, policies, and project authority fall under the central government, which will provide supporting measures for local investment promotion efforts and continuously maintain investors' willingness to invest.
