investment opportunities in semarang

Semarang Opens 4 Major Investment Opportunities in 2019

InCorp Editorial Team

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Searching for profitable sectors to invest in Semarang can be a concrete strategy when looking for new investment opportunities in Indonesia. While Jakarta, Bali and its nearby areas continue to lead the growth in economy and business opportunities, a significant shift of investments is also observed in Semarang.

In addition, businesses in Bogor, Jakarta, Depok, Bekasi and Tangerang have started to develop factories in Semarang, as the wages in Central Java are lower compared to Jakarta.

Semarang is an active trading and administrative area with most of its industrial estates, business hubs and offices gathered in the low land. Not only the area, with the beautiful view of the town and the sea in the hilly sides, is attractive for tourists, but also to foreign investors who support Semarang’s economic growth.

In this article, we will show you the 4 major investment opportunities in 2019 and explain why Semarang is considered the Pro-Investment Area in Indonesia.

Investment-friendly System in Semarang

Investments in Semarang have never been easier than now — with the implementation of an investment-friendly system through e-government. This does not only simplify the whole investment and licensing process, but it also allows investors to follow the process online.

A total of 148 online service application systems were created and integrated to facilitate the evaluation system of investments. This service is expected to provide convenience, speed, accuracy, comfort and security guarantees for entrepreneurs.

In addition, the elimination of nuisance permits, environmental permits and recognition of digital signatures are the efforts of the government to accelerate the processing of permits in Semarang.

Not to mention, Semarang, just like many other cities in Indonesia, has now implemented the online single submission (OSS) system, allowing all permits to be taken care of, no matter where the investors are.

Continue reading Online Single Submission System and Its Effect on Company Registration.

Semarang Awarded as the Pro-Investment Area

Semarang has taken considerable steps in implementing bureaucratic reform and building an investment-friendly e-government system.

The city has reaped the rewards, and on November 26, 2018 Semarang received the Pro-Investment Area Award at the 2018 Central Java Investment Business Forum (CJIBF) held in Jakarta. The 2018 Forum was very effective in offering investment opportunities in Central Java directly to investors, both domestic and foreign.

The achievement of Semarang as the Pro-Investment Area is not without reason.

Semarang has built a conducive investment climate and significantly increased the amount of investment from the private sectors. In 2017, the investment figure reached IDR 20.5 trillion in Semarang, which was much higher than the IDR 1 trillion in 2011.

Therefore, it is optimistic that Semarang City would become investment heaven in Central Java and Indonesia in the very near future.

Four Investment Opportunities in Semarang in 2019

investment opportunities in semarang indonesia

On October 17, 2018, Semarang Mayor Hendrar Prihadi announced the four big dreams as new opportunities to investors at the Semarang Business Forum (Sembiz) at Patra Semarang Hotel and Convention.

Construction of Light Rail Train (LRT)

The Semarang’s city government has confirmed that a light rail system directly linked to Ahmad Yani Airport, in connection with the integration of urban mass transportation, will be built. This is one of the four biggest projects — with a total investment value of IDR 1.2 trillion — and will be constructed with a total of nine corridors.

According to the Deputy Mayor of Semarang Hevearita Gunaryati, Semarang will build the first corridor — Corridor 9, also known as Phase 1 of the LRT tourism corridor. This first corridor is 6km long with the route of the Ahmad Yani-Madukoro Airport – Bulu Market.

Tourism will increase significantly with the construction of the first LRT in Semarang. This is due to the increased capacity of Ahmad-Yani-Madukoro Airport with the newly inaugurated terminal building.

Not to mention, with the support of infrastructure in the surrounding areas, Semarang will become not only the final destination but also a tourist hub in various regions of Central Java. As a result, the economy in the tourism sector of Semarang is bound to accelerate.

Development of Simpang Lima Underground

The studies on Simpang Lima Underground of four floors is ongoing. Simpang Lima has been considered the “diamond” area of Semarang, and the development of the underground will transform the city into an Atlas City icon in Central Java.

The Detailed Engineering Design (DED) was already announced in 2018 – two floors of the underground will be for hotels, and another two floors will be used for road connectors. The two road connectors in this project are Jalan Pandanaran-Jalan Ahmad Yani connection and Jalan Pahlawan-Jalan Gajahmada connection. The total value of this project is estimated at IDR 1.2 trillion.

Construction of Semarang Expo Center

The government of Semarang also supports the development of the Semarang Expo Center. This will mark a milestone for the city and ensure the continuous improvement in various sectors such as infrastructures, facilities and transportation.

The investment will deliver real economic benefits to the people of Semarang, as well as the Central Java. Upon completion, this Expo Center will not only boost city and national fair attendance to record numbers but will provide a year-round event space — attracting businesses and investors from across the world.

Waste Power Plant at Jatibarang

In cooperation with the administration of Semarang and Central Java, the Danish government is set to build a waste power plant (PLTSa) that utilises methane from the waste to generate electricity. The power plant will be built at Jatibarang Final Dumping Site (TPA) in Semarang.

The project has completed the planning stage and tender stage and will be proceeded for construction. The investment of this project is believed to have a total value of IDR 1 trillion and will continue to attract more investors. This is because it not only serves as an excellent solution to the waste problem but also transforms waste into valuable power that is beneficial to the nation.

The Jatibarang Final Dumping Site is situated in the west of Semarang and the south of Jatibarang Village. It covers 46 hectares of land, and 60% of it is used as a solid waste dumping site, while 40% of it is used for leachate pond infrastructure, borrow pit and covering land for landfill stock, and green belt. This dumping site can take in 4.15 million cubic meters of solid waste.

Cekindo applies professional experience and global market insights to help ensure a proven tailored fit for your market entry in Indonesia. Interested in investment opportunities in Semarang? Contact us now.

Mauliddia Antari Nusa

Branch Manager - Semarang Office at InCorp Indonesia

Lidya provides market entry consultations for FDI in Indonesia with various perspectives in fields such as garment and textile manufacturing, furniture, farming, and engineering. In addition, Lidya has extensive experience advising expats' stay permits in Indonesia.

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