ASIATODAY.ID, SEMARANG – Central Java is emerging as a new industrial frontier in Asia as global investors seek competitive manufacturing bases amid shifting global supply chains.
Singapore-based Impact of Asia Limited (IOA) Global Pte Ltd is exploring a strategic partnership with the Central Java provincial government to attract high-tech manufacturing investment from China and Europe while strengthening technology transfer, vocational education, and workforce development.
The initiative reflects a broader trend in Asia, where investors are increasingly looking for locations that offer not only production capacity but also skilled talent, industrial infrastructure, and long-term business stability.
Executive Chairman of IOA Global Pte Ltd, Daryl Tan Chen Ming, said the company’s visit to Central Java marked the beginning of a long-term cooperation effort to identify investment opportunities with its business networks, particularly in Fujian and Xiamen, China.
“This is an initial visit. Our partners will come in October so we can finalize what areas of cooperation can be developed together,” Daryl said after meeting Central Java Governor Ahmad Luthfi at the Governor’s Office.
One of the potential investors is a high-tech footwear manufacturer from Fujian, China, which is considering establishing a production facility in Central Java.
IOA Global also plans to introduce investors from China and several European countries to explore industrial locations, infrastructure readiness, government support, workforce availability, and investment opportunities in the province.
“This is a long-term commitment and project. It is not only about investment but also education,” Daryl said.
Building a Future-Ready Industrial Ecosystem
The planned cooperation goes beyond manufacturing facilities, focusing on developing an integrated industrial ecosystem through technology transfer and human capital development.
Fujian, one of China’s leading manufacturing regions, has built strong capabilities in technology-based industries. Collaboration with Central Java could support the province’s transition toward higher-value manufacturing while improving the competitiveness of Indonesian workers.
The cooperation framework includes industrial skills training, technology development programs, and opportunities for Indonesian students and young professionals to receive education and training in China.
Chinese experts could also participate in knowledge transfer and technical training programs in Central Java to support the adoption of advanced manufacturing technologies.
IOA Global is also exploring partnerships between educational institutions in Central Java and Xiamen.
Daryl said his family has developed around 120 schools and universities in Xiamen over more than a century, creating opportunities for student exchanges, lecturer exchanges, research cooperation, and knowledge sharing.
“Education cooperation can bring both regions to a higher level and create long-term value for future generations,” he said.
Central Java Strengthens Investment Appeal
Central Java Governor Ahmad Luthfi said the provincial government is committed to providing investment certainty, facilitating licensing processes, and supporting investors throughout their business development plans.
The province is offering industrial estates and special economic zones to accommodate various investment sectors, particularly manufacturing and technology-driven industries.
“Labor-intensive industries remain one of our priorities because they create broad employment opportunities. Central Java has nearly 1,500 vocational schools, polytechnics, and training centers ready to support industrial demand,” Luthfi said.
With strategic infrastructure, expanding industrial zones, and a growing skilled workforce, Central Java is strengthening its position as one of Southeast Asia’s promising investment destinations.
Singapore Remains Key Investment Partner
Singapore continues to play an important role in Central Java’s economic development.
Government data shows Singapore’s cumulative investment in Central Java from 2022 to the first quarter of 2026 reached Rp32.158 trillion, making Singapore the province’s second-largest foreign investor.
In the first quarter of 2026, Singapore became the largest contributor to foreign direct investment in Central Java, with investment value reaching Rp3.333 trillion, accounting for around 25.8 percent of total foreign investment during the period.
The growing cooperation involving Singapore, China, Europe, and Central Java highlights Indonesia’s increasing role in Asia’s evolving industrial landscape.
As global companies diversify supply chains and seek resilient manufacturing bases, Central Java is positioning itself as a strategic gateway — connecting international capital, advanced technology, and Indonesia’s expanding workforce. (AT Network)
Follow Us at Google News, Instagram, WA Channel, and LinkedIn