Central Java, as the central node of Indonesia’s most important economic corridor—the “Java Island Economic Corridor,” is rapidly emerging as Indonesia’s new manufacturing capital, with the potential to become the next “Dongguan.”

During the decade before the pandemic, Central Java’s economy showed stable growth, with an average annual growth rate of up to 9%. Since the second quarter of 2022, the economic recovery has been even stronger, with a year-on-year growth of 5.66%, surpassing the national average growth rate of 5.44%.

Central Java and its surrounding areas have established several industrial parks to attract more enterprises and boost local manufacturing development.

Notably, the Batang Integrated Industrial Park, as the most influential representative park, has attracted many companies, including China State Construction Engineering Corporation and China Railway Construction Corporation.

These industrial parks not only provide a favorable investment environment but also enhance their appeal to foreign capital through tax reductions and other preferential policies.

With the completion of the cross-Java toll road, Central Java has become the logistics hub between the western and eastern parts of Java Island.
Convenient transportation and logistics facilities along the Java Island roads make Central Java an attractive investment location, providing excellent logistics support for enterprises investing in the province.

Central Java actively participates in international cooperation, especially with close ties to China. For instance, Semarang cooperates with Chinese companies to develop and layout industries within the ASEAN Industrial Park.

These collaborations not only promote local economic development but also provide more opportunities for Central Java to integrate with international markets.