Semarang, June 26, 2025– Central Java possesses strong potential to accelerate the transition to renewable energy and develop a low-emission economy. Economically, the province demonstrates its competitiveness through five leading industrial zones. In 2023, the manufacturing sector emerged as the largest contributor to Central Java’s Gross Regional Domestic Product (GRDP), accounting for 34.03 percent.
Central Java has also become an attractive investment destination for countries such as Singapore, Japan, and China. Between 2020 and 2024, total realized investments, including Foreign Direct Investment (FDI), Domestic Investment (DI), and contributions from Micro and Small Enterprises (MSEs), reached Rp88.44 trillion.
Moreover, Central Java has set a renewable energy mix target of 21.32 percent by 2025. However, by 2024, it had only reached 18.58 percent. To accelerate progress toward this target and attract more investment in the renewable energy sector, Central Java can leverage its abundant technical renewable energy potential, estimated at up to 201 GW.
To support the province’s green economic transformation, the Institute for Essential Services Reform (IESR), in collaboration with the Central Java Provincial Investment and One-Stop Integrated Services Office (DPMPTSP), held the Central Java Renewable Energy Investment Forum: Unlocking Renewable Energy and Green Industry Investment Potential in Central Java on June 26, 2025, in Semarang. Organized annually since 2022, the forum convenes stakeholders, investors, and industry players.
In his speech delivered by Sujarwanto Dwiatmoko, Assistant for Economy and Development, the Governor of Central Java, Ahmad Lutfi, emphasized that the Central Java Government continues to encourage and facilitate new renewable energy investment plans through such investment forums. These efforts aim to achieve future energy sovereignty.
“In Central Java, we continue to promote an energy transition that is equitable, rooted in local wisdom, and involves active community participation. One example is the Energy Independent Village Program, which recognizes villages and communities that have successfully developed renewable energy potential in their areas. We also encourage the entry of green investment through DPMPTSP and invite industries to participate by adopting renewable energy sources, such as rooftop solar power systems for factory operations,” he said.
Fabby Tumiwa, Executive Director of IESR, stated that Central Java has significant solar energy potential, estimated at 194 GW. According to IESR’s analysis, the potential for financially viable solar power projects reaches 13.5 GW, spread across 12 regions in Central Java, including the regencies of Wonogiri, Boyolali, Semarang, Brebes, Kudus, Rembang, Wonosobo, and Banjarnegara. However, the 2025–2034 RUPTL (Electricity Supply Business Plan) only targets the development of 3.8 GW of solar power in Central Java by 2034.
Geographically, Central Java lies along a key corridor of the national economy. Its strategic location offers convenient access to major ports such as Tanjung Emas, Tanjung Perak, and Tanjung Priok. This advantage is further enhanced by the toll road network, adding value to the green industry supply chain.
Fabby Tumiwa also highlighted the global trend of accelerating renewable energy investment, which is growing two to three times faster than fossil fuel investments.
“Global investors are increasingly directing their funds toward green assets, those aligned with Environmental, Social, and Governance (ESG) principles, and are beginning to move away from polluting fossil fuel projects. Investment flows have also started to shift toward the Asia-Pacific region,” Fabby stated in his speech.
Fabby outlined five priority actions that the Central Java Provincial Government can take to support the region’s development as a competitive green industry hub. First, develop a Green Investment Roadmap 2025–2035 that integrates renewable energy targets, industrial transformation strategies, and green infrastructure development plans. Second, establish a dedicated green investment unit to serve as a one-stop service center for investors, equipped with streamlined procedures and supporting incentives.
Third, launch the Green Industrial Park initiative in strategic locations. These industrial zones should promote the adoption of renewable energy, circular economy practices, and green manufacturing technologies, including by micro, small, and medium enterprises (MSMEs).
Fourth, strengthen partnerships with financial institutions to provide a range of innovative green financing schemes. Fifth, invest in human resource development through green skills training programs and collaborative research with universities.
To help investors identify renewable energy investment opportunities in Central Java, IESR, in collaboration with the Central Java Provincial Government, has published the Book of Prospect. This document features 16 renewable energy project profiles, complete with data and infographics highlighting an investment potential of approximately USD 8.26 billion (IDR 132 trillion) across various regions in Central Java.
