Province

Banten

Overview Economy

Banten

Banten is a province located in the western region of the island of Java, with Serang as its capital city. Previously, Banten was part of the West Java province, but it became a province of its own following the promulgation of Law No. 23/2000.

The province’s geostrategic position provides it with easy access to resources, markets, and services, making Banten a vital buffer zone for the national capital, Jakarta. Jakarta serves as the heart of the country’s government and economy and Banten’s proximity enhances the efficiency and effectiveness of various services and investment-related matters associated with the capital.

As a crucial link between the islands of Java and Sumatra, where most of Indonesia’s population is concentrated, Banten covers an area of 9,662.9 square kilometers. As of 2023, Banten has a population of 12.3 million people, with the majority residing in Tangerang regency. Various ethnic groups call Banten home, such as the Bantenese Sundanese, who inhabit the southern part of Serang, Pandeglang, Lebak, and most parts of the Tangerang regency. Additionally, the Baduy people reside in the province’s Kendeng and Leuwidamar Mountains in Lebak. Other ethnic groups in Banten include the Sundanese Priangan, Javanese, Betawi, Chinese, Batak, Minangkabau, and Malay, as well as people from Lampung, South Sumatra, Cirebon, and various other regions.

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Banten’s economy and leading sectors

According to data by the Banten Central Statistics Agency (BPS), Banten’s economy in 2023, calculated based on the Gross Regional Domestic Product (GDRP) at constant prices, reached Rp 507 trillion, marking a 4.81 percent growth from the previous year.

The top three leading sectors driving the province’s economy are the transportation and warehousing sector, experiencing a significant growth of 12.44 percent, followed by other service activities with a 9.38 percent growth rate, and the provision of accommodation, food, and drinks with an 8.43 percent growth. Meanwhile, regarding expenditure, the province saw its total net export component experience the highest growth in 2023, reaching 19.35 percent.

The government has developed a Special Economic Zone (SEZ) in Pandeglang, Banten, called KEK Tanjung Lesung. Inaugurated in February 2015, it is the first tourism-oriented SEZ and covers an area of 1,500 hectares. Located 2-3 hours away from Jakarta, KEK Tanjung Lesung has diverse tourism potential and is close to other tourist attractions in the province, such as Banten’s old town area, the Badui and Debus culture, Ujung Kulon National Park, and Mount Krakatau. The KEK is projected to attract investments of Rp 92.4 trillion and create job opportunities for 85,000 workers by 2025.

Recently, the Banten provincial government has offered various investment opportunities aimed at boosting the realization of investments targeted by the central government, amounting to Rp 82.97 trillion. The opportunities include the development of the Banten Nature Reserve Park (Tahura Banten), Banten Sports Centre, and the Sindangheula and Karian Dams.

So far, Banten’s investment realization during the 2023 period has seen significant increases. Data from the Investment Ministry shows that the province has successfully attracted investments worth Rp 103.855 trillion, representing a 29.46 percent increase compared to the realization in 2022, which amounted to Rp 80.22 trillion.

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Latest News

July 1, 2025

PT Krakatau Steel has prepared more than 500 hectares (ha) of land in the Krakatau Industrial Estate Cilegon (KIEC), Cilegon City, Banten Province managed by its subsidiary PT KIEC to support the investment plan of Shanghai Delong Steel Group, the 11th-ranked steel producer in the world and 7th in China, through its subsidiary PT Dexin Steel Indonesia.

"This phase began in May 2025 when the Krakatau Steel team visited China and signed a memorandum of understanding (MoU) for the procurement of raw materials with Delong Steel Group," stated Krakatau Steel President Director Muhamad Akbar Djohan on June 10, 2025.

The signing of the MoU was witnessed directly by Delong Steel Chairman Ding Liguo. As a follow-up, the Delong and Dexin delegations visited Cilegon City on June 3, 2025, to directly review the location for the prospective factory, as well as supporting facilities owned by Krakatau Steel Group such as the port and existing steel mill.

The discussion for the project continued in a business meeting on June 5, 2025 in Jakarta. The main focus of this collaboration is the construction of an integrated steel mill with a capacity of 3 million tons per year.

"We are very open to this global strategic collaboration. The provision of land through PT Krakatau Sarana Infrastruktur (KSI) is a form of our real support. This collaboration also opens up opportunities for technology transfer and the development of environmentally friendly steel or green steel," said Akbar Djohan.

The Delong Steel management considers Cilegon City to be a strategic location with established industrial infrastructure. They are currently conducting a comprehensive study for the realization of this investment. The new factory is targeted to produce high-quality steel, while also having the potential to develop green steel in line with Krakatau Steel's vision to make Cilegon City the center of the environmentally friendly steel industry in Southeast Asia.

This investment is estimated to employ thousands of local workers and provide a multiplier effect for the national economy, including strengthening the industrial supply chain and supporting the Indonesian government's National Strategic Projects (PSNs).

"We are not only building a factory, but building a stronger and more competitive national steel industry ecosystem," concluded Akbar.

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