Jakarta. Banten has become a major destination for investors both from home and abroad so far this year, with the provincial government attributing to the province’s success in maintaining investment climate and developing the regional infrastructure.

Government data showed that Banten came in fifth place in terms of attracting the most investments so far this year -- just behind Jakarta, West Java, East Java, and Central Sulawesi. According to Banten’s investment service agency head Virgojanti, the province has posted Rp 83.44 trillion (around $5.3 billion) in overall investments in the first 9 months of 2024. This represents 85.3 percent of the Rp 97.79 trillion target that the government has set for the year.

“We still have about 15 percent to go until we reach that targeted Rp 97 trillion. But we shall remain optimistic,” Virgojanti said at the recent 2024 Banten Investment Forum in Tangerang.

The province has also witnessed an upward trend in its investments. In 2022, Banten secured Rp 80.2 trillion in investment, representing about 148 percent of the targeted Rp 53.9 trillion. Banten posted Rp 103.9 trillion the following year. This is equivalent to 173 percent of the targeted Rp 60 trillion. The investments that had come to Banten so far this year went to 20,001 projects. The investments created job opportunities for 114,000 locals year to date. The projects also employed approximately 815 foreign workers. 

Cilegon topped the list of the most popular investment destinations in Banten, recording about Rp 29.81 trillion, followed by Tangerang Regency (Rp 18.8 trillion), Serang (Rp 15.46 trillion), Tangerang City (Rp 11.17 trillion), South Tangerang City (Rp 5.98 trillion), Lebak regency (Rp 1.30 trillion), Pandeglang Regency (Rp 596 billion), and Serang City (Rp 322 billion).

"We should continue to keep up this performance by maintaining Banten’s conducive investment climate. But of course, the government can’t do it alone. We need to work together with entrepreneurs or investors, associations, academics, and the community. Advancing Banten’s progress will lead to a prosperous society,” Virgojanti said.

Nurul Ichwan, a deputy at the Investment Ministry, said that Banten contributed 6.7 percent of the investments that came to Indonesia. This is based on the accumulated data from 2019 until Q3-2024. Investments in Banten also soared 29.5 percent in 2023. The Rp 83.4 trillion investments that Banten has attracted so far also marked a 6.1 percent increase.

"This achievement is thanks to Banten's success in maintaining a conducive investment climate,” Ichwan told the same forum.

According to Ichwan, Banten plays a key role in developing the country’s industrial value chain. However, its development requires the support of other parties, particularly the private sector. 

Ichwan also talked about how Banten had economically transformed thanks to the province’s major development and improved services. This includes the development of Ciwandan Port and Merak Port, as well as industrial areas in Cilegon, Serang, and Tangerang. Banten has enhanced the services of the Soekarno-Hatta International Airport, including its cargo facilities. The province has also strengthened the urban infrastructure as part of the Greater Jakarta area. 

Other examples of economic transformation include the development of an integrated public housing system that comes with access to urban infrastructure services. The government has also worked to rejuvenate the region in an inclusive and integrated manner for a city without slums.

Banten has also made transformation efforts in the social, cultural, and environmental spheres. It has developed strategic agricultural areas in the northern part of the province. Efforts are underway to increase the resilience of hydrological hazard-prone areas.

Government Support
Acting Banten governor Al Muktabar promised to make sure that his government would facilitate investors who wish to do business in the province. The provincial government has set up a risk-based licensing system. Banten has also established task forces dedicated to helping businesses do their business both at the provincial and district/city levels.

The development of Banten’s downstream industries is key to boosting the province’s growth, according to Al Muktabar. The domestic processing of local raw materials into finished products of higher added value will not only create job opportunities but also woo investors to set up their factories in Banten.

"The government’s downstream industry development policy has had a significant positive impact on the national economy. Banten Province boasts abundant natural resource potential and has increasingly good infrastructure. The province is ready to become a modern and competitive downstream industrial center," Al Muktabar said.

The manufacturing and processing industries are still Banten’s largest economic contributor. Their shares in the economy stood at 30.25 percent in 2023. The sector, however, depends on imported raw materials and exports. When the US dollar exchange rate fluctuates, the sector faces risks of declining business and impacted jobs.

"We will continue to grow our investment potential and also work on other sectors. This includes the property sector for housing and offices. We will also develop trade and service sectors,” Al Muktabar said, adding that there is still a huge room for growth when it comes to investments.

The government will also optimize the realization of new investments in industrial areas and national strategic projects, as well as the local tourism and creative economy. The government vowed to develop a more reliable infrastructure to woo investors. 

To this end, the government is building the 83-kilometer Serang-Panimbang tollway. Other efforts include the reactivation of the Rangkasbitung-Labuan and Saketi-Malingping-Bayah railway lines. The government is mulling expanding the Jakarta Mass Rapid Transit (MRT) railway to reach the Banten town of Balaraja. The development of PIK 2 and BSD national strategic projects is also set to get investors’ attention. Investors also need not worry about water availability with the construction of the Karian and Sindangheula dams, according to Al Muktabar. As for energy supply, Banten already has several existing coal-fired power plants. The Java coal power plant even has a capacity of 2x1,050 megawatts.

"With government support for business actors, it is only natural that investors are actively involved in protecting the environment around their investment activities, while also empowering the local small and medium businesses. No less important is [for the investors] to comply with tax payments and other obligations," Al Muktabar said.

The acting governor also thanked the district/city government, businesses, as well as the community who had supported the regional development and programs.