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West Java

CONTENTS
Brief Information
Geography
Economy
Natural Resources
Investment Opportunities
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^ Brief Information

The province plays important role to the Indonesian economya as it has contributed 15.67% of the national economy. In 2001, the economic growth of west java figured out 4.06% (including oil & gas). The structure of the West Java economy has been shifting into industrial manufacturing from agriculture sector.

Based on the growth and contribution to the regional economy, the economic sectors fall into 3 categories, namely first substantial contribution and above average growth-rate sector such as industrial manufacturing, trade, hotel and restaurant sectors.

Second, agriculture sectors that contributed relatively high although it has diminishing contribution. The third, potential sectors such as transportation and communication. Industrial manufacturing has significantly generated the regional economy.

Almost 60% of Indonesian manufacturing industries are located in west Java. They accounted approximately 22.6% of the national industrial sectors. But, high dependent of imported materials makes the sector sensitive to the economic crisis. As a result, the industrial manufacturing policy is directed to strengthen the industrial structure on the basis of local materials, technology oriented, and having global and local competitiveness.

The growth of industrial sector is followed by trade and services sector, particularly those locate in the cities. The trade activities showed an increasing trend, 6% per annum and non-oil & gas export increased 8%. Meanwhile the export volume and value of trade and services are led to the enhancement of service capability and ability to fulfill the standard of services related to the sectoral needs and it is expected to play as regional economic locomotive.

There are several investment opportunities that can be optimalised, such as agro-industry, manufacturing, services, tourism and construction. Besides supported by complete infrastructure and huge natural resources, the province provides skilled and educated labor.

^ Geography

Geographically, the West Java province is situated between 5°50 - 7°50 South Latitude and 104°48 108°48 East Longitude.

The government administration is set into 22 Regencies/administrative cities, classified into 16 regencies and 6 administrative.

The largest is regency Sukabumi (3,160.51 sq km) and the smallest is Kota Cirebon (36.97 sq km).

The average rainfall ranges between 1,431 - 4,539 mm/year and its temperature varies between 15°C - 31°C.

^ Economy

GROSS REGIONAL DOMESTIC PRODUCTS

In 2001, the GRDP of West Java by business fields based on current price figured Rp 155,765,863.63, which is dominantly accounted by manu-facturing, agriculture and indus-trial/trade/hotel/restaurant in which, they contributed 31.16%, 18.97% and 16.62% respectively.

ECONOMIC GROWTH

The growth rate of the West Java's economy in 2001 reached 4.06% (including oil & gas).

INCOME PER CAPITA

The GRDP percapita based on current price was Rp. 5,301,973 (including oil & gas).

EXPORT-IMPORT

In 2001, the non-oil & gas export value accounted as much as US$. 114,186 thousand or 3.89%. The 2001 import volume showed a slight deacrease, compared with the previous, year afostrof figure. The import value as well as export value decreased as much as US$ 565,525 thousand (28.69%) and US$ 649,296 thousand (30,50%) respectively. The export Volume also declined as much as US $ 1,425,361 (34.82%).

MINIMUM WAGE RATES

In 2001, the minimum regional wage rate (UMR) was set between Rp. 245,000 - Rp. 379,000 monthly.

^ Natural Resources

AGRICULTURE

In 2002, the total area of ricefield reached 3,721,412 ha, with its production of 9,213,747 tons while horticulture commodities such as corn, soybean, peanuts, greenbeans, cassava and sweet potato yielded on 378,846 ha land area with its production of 2,541,882 tons. The average growth rate of vegetables production increased 4.65% (2,762,486 tons) per annum, comprised of red onion, potato, white lettuce, red chilly, tomato and other vegetable. The production of fruit such as mango, rambutan, oranges, stonefruit, pineapple, banana and other fruit, recorded an 8.80% growth rate with 2,762,486 tons.

PLANTATION

The plantation's main commodities are among others tea, clove, coconut, rubber, cacao, tobacco, coffee, and sugarcane. The total area of plantation spreads on 448,828.05 ha with its total production of 409,928.42 tons.

LIVESTOCK

The 2002 production of livestock that consisted of beef, buffalo, goat, sheep, babi, horse, chicken, hen, duck, egg, milk and dairy products, accounted 1,183,551 tons.

FISHERIES

The development of fishery production during the last 5 years has been promising, increasing averagely 6.87% per annum. The decreasing production was taking place in 2001 as much as 8.29% to 400,577.52 ton from 436,801.10 tons, due to the split up of the province into West Java and Banten Province.

FORESTRY

In 2002, the area of West Java's forest based on its function, 153,756 ha people's forest, 169,042 m³ production forest, and 2,002 ha conservation forest. The products of state forest are among others: 130,789 m³ teawood, 54,242 m³ forest wood, and 7,276 tons latex.

MINING

The 2002 mining activities produced primary mining products such as limestone, bentonite, zeolite, phospate, gipsum, trass and clay. Until 2000, the mining production recorded increasing trend as many as 34.3%, while oil and natural gas only recorded 0.55 % increase.

TOURISM

Considering its natural resources support, the West Java province has lots of enchanting tourism sights bringing the province as one of the Indonesia's prime tourist destinations. The regional government has planned to develop tourism potential resources through sustainable series of policies such as cultural development, tourism support and facilities, cultural and tourism conciousness programs, development of tourism assets and human resources etc.

^ Investment Opportunities

(this information is taken from Wikipedia and BKPM).

 

© 2006 Embassy of the Republic of Indonesia - Bangkok, Thailand Last Modified: August 2007