Tens of trillions of rupiah in investment commitments were made during the 2019 West Java Investment Summit (WIJS) recently held by the provincial administration in cooperation with the local office of Bank Indonesia.
West Java Governor Ridwan Kamil said as many as 23 business partnership agreements had been signed by domestic and foreign companies during the investment summit, with commitments totaling Rp 53.8 trillion (US$3.8 billion).
The large investment commitments made during the summit on Friday indicate that West Java, which is home to large industrial zones, remained one of the country’s top investment destinations, he said.
The annual investment summit has become an effective business forum for business players in the country, including industrial estate developers and foreign investors, to explore opportunities and form business partnerships, Ridwan said at the event.
Ridwan expected the commitments to be followed up with concrete action that would create at least 30,000 jobs for residents. Three types of investment commitments were made during the summit: investment in the manufacturing industry, investment in regional development projects, and public-private partnership (PPP) investment in infrastructure projects.
He claimed that the investment commitments had risen sharply from the same event last year, partly due to his visits to various countries in the first year of his tenure as West Java governor, where he met executives of large companies to promote investment opportunities in the province.
The partnerships signed during the investment summit include a Rp 2 trillion partnership between PT West Java International Airport-Aerocity Development and China-based Homnicen for the development of the Business II and Creative Technology Center; a Rp 3.6 trillion partnership between PT Tirta Gemah Ripah, PT Adaro Tirta Mandiri, Adhi Karya, and PT Manila Water Indonesia for the development of drinking water treatment in West Java; and a Rp 2 trillion partnership between five notable hotel groups including AccorHoyels, Sahid Group and Sintesis for the development of the Pangandran special economic zone.
Meanwhile, West Java Capital Investment and One-Stop Integrated Services Agency (DPMPTSP) head Dadang Mohamad Masoem said investments in the industrial sector in the province provided 71,573 jobs for the residents. He said West Java was popular among investors as the province was home to well-developed infrastructure, especially compared to other provinces.
“Our integrated online service has also helped improve the overall investment climate,” he said.
According to data from the West Java DPMPTSP, the industrial sector has garnered the largest amount of investment in the province. Dadang said that was partly due to the fact that the province was home to 25 industrial parks.
Ridwan said the escalation of the trade war between the United States and China also opened up opportunities for West Java to attract investors, especially from China, who planned to relocate their [factories] to avoid the impact of the trade conflicts.
Ridwan went on to say that the province had attracted Rp 68 trillion in total investment as of the middle of this year. The private investment, he said, was a source of funding for various development projects throughout the province alongside the PPP scheme and zakat.
“Our regional budget only covers 10 percent of development funds,” he added.
Bank Indonesia West Java head Doni P Joewono said the province needed to explore alternative economic sectors in the wake of the country’s weak exports.
“We need to seek alternative growth avenues. Our exports have seen negative growth despite the fact that 99 percent of manufacturing products have been exported. Viable economic growth can now be achieved through investments and government spending,” he said, adding that he also fully supported the province’s tourism and creative economy sectors. (rfa)
By: Arya Dipa