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

February 18, 2025

Serang City, Banten Province seems to be starting to attract investors, including PT Jaya Dinasti Indonesia (JDI). Banten Province Investment and One-Stop Integrated Services Office (DPMPTSP) Head Virgojanti revealed that the Chinese investor-owned company plans to invest in the Banten capital to found an industrial area.

She obtained the information after meeting with the Linhai Chamber of Commerce Association in Zhejiang Province, China which includes entrepreneurs engaged in various fields, including PT JDI, at the end of January 2025. She said that entrepreneurs in China are currently considering Banten's investment potential.

"Back during the meeting they [PT JDI] expressed their interest in investing in Banten in the form of managing an industrial area in the Serang City area," said Virgo on Feb. 17, 2025.

The projected value of PT JDI's planned investment is worth Rp600 billion. Virgo said that PT JDI plans to manage the 150 hectares (ha) industrial area that is currently being planned in the Kasemen District, Serang City. The Banten DPMPTSP plans to hold a joint discussion with PT JDI to discuss technical matters of the investment.

"God willing, in the future Zhejiang will visit us," she said.

Virgo said that the Chinese government itself has a policy to relocate the industrial area in Zhejiang Province, which China want to develop into an area that focuses on the tourism sector. This is also an opportunity for Banten to attract these investors so that they can invest in this Land of Champions.

"Hence they [the entrepreneurs] are looking for countries that can invest in [to relocate their manufacturing], targeting Asian countries such as Vietnam and Indonesia. It turns out that information about Banten is very minimal. That's why I explained the potential that Banten has to the [Banten] DPRD (Regional Legislative Council) Speaker," Virgo divulged.

"We conveyed that there are investment opportunities. If you want to move, please do so with us. Alhamdulillah, they (PT JDI) also support our [efforts]. Insya Allah, they will come here later to follow up on it (their plan to invest)," she concluded.

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