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

April 2, 2026

Daya Anagata Nusantara (Danantara) Investment Management Agency and the Indonesia Investment Authority (INA) have invested US$200 million, equivalent to Rp3.37 trillion (assuming an exchange rate of Rp16,868 per US$1), in the petrochemical project of PT Chandra Asri Pacific (Chandra Asri Group). The investment was formalized through the signing of a Conditional Share Subscription Agreement (CSSA) between Danantara, INA, and Chandra Asri Group.

The agreement marks the capital commitment phase to support the construction of the chloralkali–ethylene dichloride (CA-EDC) plant in Cilegon City, Banten Province, which is being developed and operated by Chandra Asri Group through its subsidiary PT Chandra Asri Alkali (CAA). Under the agreed investment structure, Danantara and INA will jointly invest US$200 million. The CA-EDC is valued at US$800 million or about Rp13.39 trillion. The petrochemical national strategic project (PSN) is scheduled to begin operations in 2027.

Danantara Chief Investment Officer Pandu Sjahrir stated that the agreement affirms Danantara's commitment to strengthening national strategic industries that provide high added value, create jobs, and accelerate Indonesia's economic growth.

"This collaboration is not only a response to the challenge of import dependence, but also a concrete step to accelerate downstreaming, a key driver of the Indonesian economy," Pandu said in an official statement on Mar. 3, 2026.

Acting INA CEO, CFO, and Chief Risk Officer Eddy Porwanto stated that the investment reflects INA's long-term mandate to mobilize capital in national priority sectors. He added that the collaboration between INA and Danantara as long-term investment partners aims to build a strong capital foundation to support the sustainable development of the strategic raw materials industries.

"This effort is expected to encourage downstreaming, increase domestic added value, and strengthen the competitiveness and resilience of the national industry," said Eddy.

Meanwhile, Chandra Asri Group President Director and CEO Erwin Ciputra welcomed the participation of Danatara and INA as strategic investment partners in the CA-EDC project.

"This support reflects our confidence in Chandra Asri Group's capabilities in developing this facility," he said.

Chandra Asri Group expects that the CA-EDC project will significantly reduce dependence on imports of strategic chemicals, strengthen the resilience of the national supply chain, and support downstreaming. Furthermore, Erwin stated that the facility's construction and operation  will also create new job opportunities for 3,000 workers during construction and 250 workers during operation, as well as provide a sustainable impact for the community and industry in Cilegon City and its surrounding areas.

In the first phase, the CA-EDC plant is targeted to have an annual production capacity of 400,000 tons of dry caustic soda and 500,000 tons of EDC. This facility is being developed with high technological and industrial safety standards to ensure operational efficiency, supply reliability, and adherence to sustainability principles. Caustic soda is used as a raw material in the soap and detergent production process, aluminium refining, and papermaking. EDC is a key raw material for the construction and packaging industries.

The presence of domestic caustic soda production capacity is expected to significantly strengthen import substitution and domestic supply security. EDC production is also expected to both support domestic industrial needs and has the potential to increase exports, contribute to Indonesia's foreign exchange earnings, and strengthen the national chemical industry's competitiveness.

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