West Java Investment and Partnership
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WEST JAVA INVESTMENT AND PARTNERSHIP A Portfolio of West Java’s Opportunities in Investment, Trade, and Partnership WEST JAVA INVESTMENT & PARTNERSHIP A Portfolio of West Java’s Opportunities in Investment, Trade, and Partnership. 01 TABLE OF CONTENT 04 West Java In A Glance 05 Geographic Condition 06 Demographic Condition 07 Social Condition 08 Economic Condition 10 Investment Realization 11 Top Sectors Based On Investment Value 12 Why Should You Invest 34 What Does West Java Offer 13 Top Reasons Why Should You Invest 35 Infrastructure Investment 14 Foreign Investment In West Java 45 Public Private Partnership 15 Doing Business in West Java 55 New Industrial Area and City Development 20 Guaranteed And Secured Infrastructure 69 West Java and National State-Owned Enterprises 24 Financial Incentives 87 Commodities Trading 29 Permit Facilities 99 Tourism Investment 117 Digital Inclusive Province 123 Social Development Program U 3 2 u 0 R -2 u 8 z 1 h 0 a 2 n a u v l a U J t l u s e m W V f i o c r e VISION o G n o r e v v e r o n G o l West Java as the Center r i o m f W a K of Excellence Province e s n t a J a w through Innovation and v d a i 2 R 0 . 1 h 8 Collaboration c - 2 o 0 M 2 3 03 1 Forming Pancasila-ist human beings by MISSION strengthening the role of mosques and religious institutions as the center of civilization 2 Developing West Java citizens 3 Accelerating the growth and equity in the to be civilized, qualified, happy, environmentally-friendly and sustainable and productive through innovative development by improving the regional improvements in public services connectivity and regional planning 4 5 Enhancing ummah economic Accomplishing an innovative governance productivity and competitiveness to be and collaborative leadership between wealthy and just through utilization of central, provincial and district/municipal digital technology and collaboration government with innovation centers, and other development stakeholders. 04 WEST JAVA IN A GLANCE Geographic Condition Demographic Condition Social Condition Economic Condition Investment Realization Top Investment Sectors 05 GEOGRAPHIC CONDITION West Java Area: 35,378 Km2 The Province Only Contributes Up To 1.8% of Indonesia’s Total Area. However, It Has A Major Role In Indonesia’s Development. West Java In Indonesia Is Located In Java Island West Java has a very strategic WEST JAVA geography located directly adjacent to the Indonesia’s Capital City, Jakarta 06 DEMOGRAPHIC CONDITION People with 45 M Muslim 51M 33M 25M 35M population SOUTH KOREA MALAYSIA AUSTRALIA SAUDI ARABIA Population The population Growth Rate is projected in 2023 in the last 10 1.11% to be around 50M 48M years 78% 75+ 70-74 Productive Age 65-69 or 60-64 55-59 37.5M 50-54 45-49 from total population 40-44 35-39 48.3M 30-34 25-29 20-24 Sex Ratio 15-19 10-14 MALE : FEMALE 05-09 00-04 103:100 2.000.000 1.000.000 1.000.000 2.000.000 West Java Population Pyramid 2020 Source: Indonesia Central Bureau of Statistic, 2020 07 SOCIAL CONDITION Having two sides of one coin, West Java has both AVERAGE LENGTH ECONOMIC GROWTH RATE ASSOCIATED WITH OF SCHOOL PURCHASING POWER, POVERTY RATE, numerous potentials and challenges that can be seen AND INFLATION RATE from some indicators below. Our goal is to optimize YEAR the potentials and to overcome the challenges at the 8.55 Grow 0.18 year from 2019 1150 0 12 same time through the Indonesia: 8.48 year programs we deliver. NEEDY PEOPLE MILLION SCHOOL LIFE TOTAL WORKFORCE INDICATOR HDI 11000 8 PEOPLE EXPECTANCY MILLION 4.19 24.21 PEOPLE POVERTY RATE YEAR Grow 0.37 million people 12.5 10 50 0 4 from 2019 Grow 0.02 year from 2019 POVERTY 8.43% Percent Indonesia: 138.22 million Grow 1.61% from 2019 Indonesia: 12.98 year people Indonesia: 10,19% 10 000 0 PURCHASING UNEMPLOYMENT RATE NEEDY PEOPLE BASED ON POWER WORKFORCE LOCATION MILLION Purchasing Power (thousand IDR) Purchasing Power 10.46% Urban 7.79% IDR/YEAR 9500 -4 Rural 10.64% 10.85 2016 2017 2018 2019 2020 Grow 2.42% from 2019 Drop 0.3 million/year from 2019 Indonesia: 7.07% Indonesia: 11.013 Purchasing Power Economic Growth Rate GINI RATIO million/year Poverty Rate Inflation Rate HUMAN DEVELOPMENT INDEX 0.398 LIFE Social conditions indicated by the poverty rate, Same as 2019 EXPECTANCY purchasing power, and inflation rate tended to Indonesia: 0.385 72.09 YEAR improve over the years. However, 2020 has been a Categorized as “High” The highest is 73.04 Yogyakarta: 0.437 Grow 0.06 from 2019 Grow 0.19 year from 2019 tough year due to the pandemic. Hence, West Java The lowest is continues to fight for socio-economic recovery Indonesia: 71.94 Bangka Belitung: 0.257 Indonesia: 71.47 year Source: Indonesia Central Bureau of Statistic, 2020 08 ECONOMIC CONDITION NET EXPORT NET IMPORT BALANCE OF TRADE 149 41.2% 26.59 8.69 17.90 Trillion USD OF WEST JAVA’S GDRP IS IN Billion USD Billion USD Billion USD MANUFACTURING SECTOR IS TOTAL WEST JAVA’S GDRP WEST JAVA CONTRIBUTION TO INDONESIA THE HIGHEST EXPORT THE HIGHEST MANUFACTURING THIRD HIGHEST CONTRIBUTION IN INDONESIA SECTOR IN INDONESIA’S GDP TO INDONESIA’S GDP 16.28% 24% 13.23% Source: Indonesia Central Bureau of Statistic, 2020 09 ECONOMIC RECOVERY ECONOMIC GROWTH RATE OF To overcome the pandemic’s impact, West Java continues WEST JAVA AND INDONESIA 2013 - 2020 to fight for socio-economic recovery through various strategies. 6,33 5,66 5,66 5,09 5,05 5,33 5,07 West Java SOCIETY SPENDING 5,56 5,07 5,17 5,01 4,88 5,03 5,02 Indonesia Driving the middle and upper-class society to spend as much as money, particularly to the small and medium enterprises. -2,02 GOVERNMENT SPENDING -2,44 Ensuring the government to continuously spend 2013 2014 2015 2016 2017 2018 2019 2020 government funds in infrastructure aspect and development programs. ECONOMIC ECONOMIC INVESTMENT GROWTH RATE 2019 GROWTH RATE 2020 Inviting investors from domestic and foreign countries to invest in West Java by providing 5.07% -2.44% development projects and an investment-friendly ecosystem. Typically, West Java’s economic growth rate is always higher than National. However, in 2020, West Java was EXPORT more impacted by the pandemic resulting in a lower economic growth rate than National. Enhancing the export activities from West Java. one of those is collaborating with foreign trading chambers and international embassies. Source: Indonesia Central Bureau of Statistic, 2020 10 INVESTMENT REALIZATION TOP 5 TOTAL FOREIGN INVESTMENT REALIZATION IN INDONESIA DIRECT INVESTMENT REALIZATION ( January – December 2020) 140 Others 48.59% 120 West Java West Java Location Investment Project 16.72% West Java 4,931 11,228 100 Jakarta Jakarta Jakarta 3,716 17,083 12.60% 80 East Java North Maluku 2,478 192 North Maluku Banten 2,205 4,3974 Banten 8.40% 60 Central Sulawesi 1,830 449 Banten Central Java Others 14,326 25,769 40 7.48% Central Sulawesi (USD Million) 29,485 30,354 20 6.21% Investment Realization (Trillion Rupiah) 0 2015 2016 2017 2018 2019 2020 Year DOMESTIC DIRECT INVESTMENT REALIZATION ( January – December 2020) Even though hardly impacted by the pandemic, West Java still becomes the leading province Others 47.94% with the highest investment realization value in East Java Location Investment Project Indonesia. 13.46% West Java West Java 3,671 9,169 Total Investment value in West Java in 2020 is 12.43% East Java 3,976 15,838 Jakarta Jakarta 3,068 17,746 around USD 8.6 Billion 10.39% Riau 2,437 3,620 Riau Banten 2,225 5,929 8.25% Others 14,161 46,601 Banten (USD Million) 29,538 30,451 7.53% Source: Indonesia Investment Coordination Board, 2020 11 TOP 5 SECTORS TOP 5 SECTORS BASED ON DOMESTIC BASED ON FOREIGN DIRECT INVESTMENT VALUE DIRECT INVESTMENT VALUE Transportation, Construction Warehouse, and 49.09% 25.03% Telecommunication Residential, Automotive and Industrial Estates, Other Transportations 14.88% and Offices 16.37% Transportation, Electricity, Gas, Warehouse, and and Water 5.82% Telecommunication 14.94% Residential, Chemical and Industrial Estates, Pharmaceutical 4.81% 13.61% and Offices Electricity, Gas, Food 4.39% and Water 4.79% Source: West Java Investment and One Stop Service Agency, 2020 12 WHY SHOULD YOU INVEST Top Reasons Why Should You Invest Foreign Investment In West Java Doing Business in West Java Guaranteed And Secured Infrastructure Financial Incentives Permit Facilities 13 Market Home of Potentials Investment The Most Populous The Biggest The Highest Contribution The Nearest Province Productive Age To National Investment Industrial Zone To Population Realization The Capital City As the most populous West Java has West Java contributes 14.57% West Java has more than 28 province in Indonesia, 37.5 million people of National Direct Investment industrial estates (20,538 Ha West Java offers the of productive age Realization, which reaches 8.6 total area), the closest to the most significant potential Billion USD capital city with a more market with the growing competitive wage number of middle-class households Growing Center of Economy Excellence The Highest The Highest Contribution West Java is also home to Contribution To National Export world-class higher educations and multinational companies To GDP Goods The best universities in Indonesia are from West Java West Java contributes West Java contributes 13.23% of the National 16.28% of National export GDP in goods 14 FOREIGN INVESTMENT IN WEST JAVA TOTAL INVESTMENT TOTAL PROJECTS In total, there are USD 4,793 million from In total, there are 11,031 projects from 63 foreign countries that have invested 63 foreign countries that have invested