Central Java's economic growth is estimated to reach the range of 4.6% to 5.4% year on year (Yoy) in 2022. This is in line with the sloping case of the Omicron variant of the Covid-19 case, followed by several policies from Bank Indonesia and the government, as well as the global economic recovery. "With assumptions and considerations, we are optimistic that the Central Java economy will grow by around 4.6% to 5.4%, better than 2021 which was 3.32%. This is driven by the acceleration of vaccination, policy stimulus from Bank Indonesia, the government, and improvement in the global economy which will increase Central Java's foreign exports," said Head of Central Java Bank Indonesia Representative Rahmat Dwi Saputra to the media after the event at the Alila Hotel Solo, last weekend. Rahmat said that the Central Java economy, which grew 3.32% last year, was better than 2020, which contracted 2.65% (yoy). He is optimistic that growth will continue in 2022, driven by increased investment from national strategic projects and the private sector.
"Investment in the first quarter of 2022 is still good because there are several national strategic projects underway. But if we look at the private sector, new investment is still increasing in Central Java," he explained. Regarding this new investment, he continued, among others, PT Parkland, a footwear company from South Korea, invested US$ 75 million to build a footwear industry in Pati.
There are also PT BIG and PT Hwa Seung as well as textile manufacturers (PT SAI Apparel) which are said to be expanding by realizing investment in the construction of a new factory. A number of foreign companies will also conduct ground breaking in 2021 and will continue construction in 2022 including PT KCC Glass, Cosmos Indo Ink, Rumah Keramik Indonesia, Energik Volts Motor Indonesia, Window Shutter Indonesia, and Tawada Medical Equipment Manufacturer at KIT Batang. "Many have added to the market in Central Java. This industrial area is also expanding its business, in terms of investment there is an increase and it encourages economic growth."
"This is also because there is no infrastructure in Central Java that can beat the rest of Indonesia: the railway line around Central Java has been corrected, the international airport has been added to Kulonprogo, Sudirman Airport is in Purbalingga, then there are many industrial areas, toll roads are connected; markets, cafes in Semarang if we think about it. seen from outside Central Java, it means that there is community mobility around Java," he said. Meanwhile, he added, the most encouraging economic growth in Central Java is the processing industry. On the other hand, trading is also said to still have an increase even though it is limited. "Indeed, the government's incentives for PPnBM and PPN DTP for houses are still ongoing and this is still encouraging public consumption and trade," he added.
