West Java Investment Growth Leads Indonesia in Q2 2025

West Java’s investment growth led the nation in Q2 2025, according to data released by Indonesia’s Ministry of Investment/BKPM. The province contributed IDR 72.5 trillion to the national total of IDR 477.7 trillion, representing 15.2% of all investment realized in the quarter. This growth surpassed the Q1 2025 figure of IDR 465.2 trillion and marked an 11.5% increase compared to the same period in 2024.

 

West Java Investment Growth Surpasses Other Provinces

West Java secured the highest investment realization among all Indonesian provinces in Q2 2025, totaling IDR 72.5 trillion. This included USD 1.8 billion in foreign direct investment (FDI) and IDR 43.7 trillion in domestic investment (DI). Over the first half of 2025, the province’s total investment reached IDR 141 trillion, with USD 4 billion from FDI and IDR 90.4 trillion from DI.

Other top-performing provinces in Q2 2025 included:

  • Jakarta: IDR 71.1 trillion (USD 4.36 billion) (14.9%)
  • East Java: IDR 38.6 trillion (USD 2.37 billion)  (8.1%)
  • Central Sulawesi: IDR 31.6 trillion (USD 1.94 billion) (6.6%)
  • Banten: IDR 29.7 trillion (USD 1.82 billion) (6.2%)

 

“West Java ranked first in Q2 2025 and in the first half of 2025 we secured a total investment of IDR 141 trillion from FDI USD 4 billion and DI IDR 90.4 trillion,” said West Java Investment and One-Stop Services (DPMPTSP) Head Dedi Taufik.

 

Key Sectors and Regional Contributors to Growth

The main sectors driving investment in West Java included the automotive and transport equipment industries, as well as housing development. These industries attracted major investments, especially in key regencies and cities.

“Bekasi Regency was the biggest contributor with IDR 18.75 trillion, followed by Karawang, Subang, Bogor, and Bandung City,” said Minister of Investment and Head of BKPM Rosan Roeslani.

 

Government Strategy Behind the Surge

The province’s top ranking stems from a clear strategy led by Governor Dedi Mulyadi, who has prioritized creating a safe and efficient environment for investors. To strengthen industrial security and expand employment opportunities, the governor partnered with West Java Regional Police and Metro Jaya Police.

“With stable security, investment can grow, jobs can be created, while MSMEs are protected, and economic order is maintained,” said Dedi.

He also emphasized the importance of simplifying business processes.

“Make processes easier for law-abiding businesses, but act firmly against violations,” he said.

The West Java government has focused on deregulating local investment policies, streamlining permits, and removing barriers that discourage investment. These efforts include both fiscal and non-fiscal incentives.

 

Foreign Direct Investment West Java at Record High

Foreign direct investment in West Java reached USD 4 billion in H1 2025, reflecting growing international interest in the province. This surge followed ongoing efforts to promote digital services and investor facilitation.

The DPMPTSP rolled out several investor-friendly platforms, including:

  • Jelita app – for streamlined licensing and permit processes
  • Physical and digital public service malls (MPP) – to improve service accessibility
  • Mobile licensing services – bringing registration directly to local businesses

 

Additional initiatives included:

  • POTS – Business licensing acceleration for MSMEs
  • Gebyar NIB – Mass registration events for Business Identification Numbers
  • Investor roadshows – Promoting opportunities across various regions

 

Key promotional events to attract global investors:

  • West Java Investment Challenge (WJIC)
  • Cifest
  • West Java Investment Summit (WJIS)

 

Dedi Taufik also highlighted these events as successfully showcasing the province’s economic potential to global investors.

 

Investment Powers West Java’s Economy

The West Java Provincial Government views investment as a crucial tool for reducing poverty and unemployment. With support from regional governments and the public, the province has maintained a strong and stable investment climate.

“Thanks to all West Java residents who helped maintain investment stability,” said Governor Dedi Mulyadi.

The government continues to empower micro and small enterprises through partnerships, training, market access support, and business development assistance. These initiatives are expected to sustain the province’s position as a national investment leader and a key driver of Indonesia’s economic growth.

 

 

Source: bandung.bisnis.com, koran.pikiran-rakyat.com

Image: Alexandrovich Lukatskiy / Getty Images 

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