Province

Central Java

Overview Economy

Central Java

Covering a total area of 34,337 square kilometers in the middle of the island of Java, Central Java is a province comprising 29 regencies and six municipalities, including Magelang, Surakarta, Salatiga, Semarang, Pekalongan, and Tegal, with Semarang serving as Central Java’s administrative capital. The province also encompasses the Special Region of Yogyakarta, which remains under its jurisdiction.

As of 2023, Central Java has a total population of 37.5 million people with a population density of 200 people per square kilometer, according to data from the Central Java Central Statistics Agency (BPS). Out of this population, the majority adhere to Islam with/ Oftentimes, those who adhere to Islam are classified into two groups: the Santri, who strictly adhere to Islamic teachings and Sharia law, and the Abangan, who identify as Muslims but retain strong influences from Javanese spiritual beliefs, known as Kejawen, in their customs and practices. Other religions practiced in the province include Christianity, Catholicism, Hinduism, Buddhism, Khonghucu, and indigenous belief systems. Cities such as Semarang, Magelang, Surakarta, and Salatiga boast Christian populations.

In Central Java, the predominant ethnic group is the Javanese, making the province a renowned cultural epicenter of Java, with Surakarta hosting the royal palace of Java. A notable minority population consisting of the Chinese community has seamlessly integrated with the Javanese, with many conversing in Javanese with distinct accents in their daily interactions. This palpable influence is especially evident in cities such as Semarang and Lasem, the latter often referred to as the Le Petit Chinois or Little China Town, situated in the northeastern corner of Central Java. Other notable ethnic groups residing in Central Java are the Sundanese, Batak, Madura, Lampung, Betawi, Malay, Minangkabau, and other ethnic groups.

Show more

Central Java’s economy

Central Java's economy, with a Gross Regional Domestic Product (GRDP) totaling Rp 1.102 trillion in 2023, thrives on diverse sectors. Among the leading contributors are the manufacturing industry sector, having contributed Rp 361 trillion, the construction sector with Rp 115 trillion, and the wholesale retail and trade sector – including automotive and motorcycle repair – with Rp 161 trillion in contributions to the province’s GRDP.

The Indonesian government is also developing a Special Economic Zone (SEZ) in the region of Kendal. The Kendal SEZ specializes in export-oriented industries, import substitution, high-tech products (HTP), and specialized applications supporting Industry 4.0 and Industry 4.0-based logistics. With projections indicating an investment potential of Rp 72 trillion and the creation of 20,000 job opportunities by 2025, the Kendal SEZ stands as a promising investment destination.

Show more

Latest News

January 13, 2025

PT Kawasan Industri Terpadu Batang (KITB) has successfully attracted 28 companies to build factories in the Grand Batang City integrated industrial area in Batang Regency, Central Java Province by the end of 2024, with a combined investment value reaching Rp18.7 trillion. KITB President Director Ngurah Wirawan stated that the 28 companies are spread across ​​400 hectares (ha) of land that is being developed by KITB in 2024.

"We have opened 400 ha of land this year from a total land area of ​​4,300 ha. Next year we will open another 250 ha of land, and then expand further in multiple stages for the following years," he said at the KITB Editor Circle event on Dec. 15, 2024.

Ngurah said that KITB's land reserves currently reach 3,100 ha, and a total of 1,500 hectares have been utilized.

Joko Widodo, then the incumbent president of Indonesia, inaugurated Grand Batang City as a national strategic project (PSN) on July 26, 2024 through Presidential Regulation (Perpres) No. 106/2022 on Investment Acceleration through the Development of the Batang Integrated Industrial Area in Central Java Province.

The development of Grand Batang City was also accelerated through the construction of several facilities, including land transportation access, electricity, and docks. KITB is still awaiting for President Prabowo Subianto to sign the Government Regulation (PP) which would make Grand Batang City a Special Economic Zone (SEZ) into effect.

"It's like an exam, we have had a trial and passed so we just have to wait for the certificate," he said.

Ngurah said that KITB will later be the only SEZ that works on three sectors at once, namely industrial processes and manufacturing, logistics and transportation, as well as tourism.

The combined realized investments to SEZs last year reached Rp242.5 trillion as of the third quarter (Q3) of 2024 based on National SEZ Council data. Meanwhile, the total number of workers employed in all SEZs as of Q3 2024 reached 151,260 people who are employed by 394 businesses.

Read more
December 11, 2024
November 29, 2024
November 1, 2024
November 1, 2024
October 14, 2024
October 11, 2024
September 11, 2024
September 9, 2024
Load more