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

November 24, 2024

The Banten Province Investment and One-Stop Integrated Services Office (DPMPTSP) and Bank Indonesia Representative Office for Banten Province held the "Banten Investment Forum 2024" event in the Gading Serpong area of Tangerang on Oct. 29, 2024.

The event, which had "Investment To Enhance Inclusive and Sustainable Economic Growth" as its theme, was opened by Investment and Downstream Ministry/Investment Coordinating Board (BKPM) Investment Promotion Deputy Nurul Ichwan. Also attending were BI Banten Head Ameriza Ma'ruf Moesa, Banten DPMPTSP Head Virgojanti, heads of local administrations in Banten Province, business actors and banks, as well as students and other related elements.

Banten DPMPTSP Head Virgojanti said that the event was expected to be a forum that brought business actors, prospective investors, banks, as well as local governments and the community together. The Banten DPMPTSP also wants to get input related to investment opportunities that can be done in Banten Province from observers and economic actors through the forum.

"Or maybe there are things that need to be recommended in order to improve the investment services provided by ourselves as part of the Banten Provincial Government," she added.

The forum's talk shows on investment opportunities and future economic challenges include Bank Permata (PermataBank) Chief Economist Joshua Pardede, BI Banten Head Ameriza Ma'ruf Moesa, and other speakers from the National Development Planning Agency (Bappenas), the Energy and Mineral Resources Ministry, BI, and PLN's Banten Province Central Distribution Unit.

An award ceremony was also held as a form of appreciation for the performance of the Banten's regency and city governments that have jointly encouraged growth and ease of investment in Banten Province.

"Investment realization will not be achieved without our cooperation and collaboration," Virgojanti said.

Appreciation was also given to business actors that has performed well on matters such as providing reports on the implementation of business partnerships.

"Today, we are also launching an investment brand in Banten, namely 'Banten Gold'," Virgojanti revealed.

She said that the Banten Gold brand was created based on various inputs from several groups for a strong identity to attract investments that is also not "narcissistic."

In addition, there was also a presentation for development and investment opportunities in the Tanjung Lesung Special Economic Zone (KEK), the Pantai Indah Kapuk National Strategic Project (PSN), and Bumi Serpong Damai (BSD).

The handover of business registration numbers (NIB) to MSMEs was also carried out at the forum, as well as meetings and in-depth discussions for investors. The forum also saw the signing of memorandums of understandings (MoU) for business partnerships between large entrepreneurs and several MSMEs in Banten.

Virgoyanti also conveyed the written statement of Acting Banten Governor Al Muktabar, who emphasized the importance of investment in efforts to develop Banten's economy, raise employment, improve community welfare, and eradicate poverty.

"We express our gratitude and appreciation to investors and prospective investors for choosing Banten Province as a place to invest and develop their businesses, which of course in turn will provide a positive contribution that becomes a very important factor in regional development," he stated.

Al Muktabar hoped that synergy will be built between the central government, local governments, business actors or investors, and the community through the forum so a conducive investment climate could be achieved in Banten.

"So that it (the synergy) could encourage the creation of quality investment that can play a role in reducing poverty, raise the [local] economic growth rate, and significantly increase employment," said Al Muktabar.

Meanwhile, Investment and Downstream Ministry/Investment Coordinating Board (BKPM) Investment Promotion Deputy Nurul Ichwan emphasized that all investment stakeholders must follow the new norms established by the United Nations' Sustainable Development Goals (SDG), which for business actors is expressed as environmental, social, and governance principles.

"We cannot exclude ourselves from following those norms," he stated.

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