Developing countries have been known as a perfect place for investors all over the world with its relatively low wage to reduce cost production, a large population with its substantial target market, and easy access toward resources. When it comes to the prospective country for investors in Asia, Indonesia undeniably has made it into the top list, ranked 4th as the top destination for global investment after China, USA, and India.
With its fast-growing economy, the type of Indonesian business model has grown into a wide variation of business that does not merely depend on human resources or labor, unlike in the past that mainly focuses on infrastructure.
Central Java: The Next Big Province for Investment in Indonesia
Semarang Business Forum
The year 2019 had been an excellent year for Semarang, thanks to Semarang Business Forum which brought up the investment with a total of US$ 3.02 trillion, consisting of investment in multiple sectors.
The biggest investment from Semarang Business Forum came from the industrial sector, one with Taizhou Fuling Plastic Co. Ltd as foreign investors. Brantas Abipraya, the state-owned enterprise, also showed similar interest in this sector.
Another investment was toward the healthcare, hospitality, trading, and property sectors. Therefore, with that tremendous amount of investment combined with the number of growing startups, it is a fact that Semarang is currently the next big city.
The question is, why does it have to be Semarang instead of Jakarta or other big cities? The reason might lie beneath the strategic location that Semarang offers.
Located in the heart of Java islands near the Indonesian maritime track, this city has easy access to international trading as well as well-developed access to Jakarta and Surabaya since its located right in the middle of the two.
Not only that, but Semarang also proves itself to be one of the most prospective cities due to the number of startups that have been built in this city. According to startupranking.com, 31% of Indonesian startups are based in Semarang. The survey was conducted in 2017 and the number keeps on growing as for now.
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Investment in Kendal Industrial Park
Foreign investment also showed its interest in another part of Central Java which is the Kendal Industrial Region. It was the Taiwan External Trade Development Council with the amount of investment of $170 million back in 2019.
Kendal Industrial Park itself is a whole innovation initiated by the Indonesian government to improve Central Java’s economic sectors.
Aside from its relatively minimum wage compared to other big cities in Indonesia, the availability of location, safety, as well as the ease of investment process offered by Central Java’s government also contribute toward the increased interest of foreign investment.
The Central Java’s government also states that they are ready to provide reliable and well-prepared labor from vocational schools with its curriculum that can be adjusted toward the industries’ needs.
Moreover, the Central Java’s Government also facilitates startups by creating a startup ecosystem that supports startups’ development in Central Java, especially Semarang.
Business Incorporation in Semarang with Cekindo
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