Business Investment in Semarang: Which Sector Has Great Potential for 2023?

Semarang – a city in Indonesia that passes over without giving due attention, has excellent potential for business investment. The business potential is now recognized as the city welcomes more investments. 

The head of Dinas Penanaman Modal dan Pelayanan Terpadu Satu Pintu (One Stop Investment and Services Office) reveals excellent investments in Semarang have continued to increase throughout 2022. 

Semarang Has Great Potential to Attract Investors

Several sectors have seen more investment than others, including trade, construction, health, education, and industry. To further illustrate the investment trend, Semarang has seen an astounding 70% increase in investment. 

The increase happens specifically in the trade sector, 32% in the industrial sector, 22% in the tourism sector, and 11% in construction. The reason for such an increase is the geographical location of Semarang, which is close to Batang and Kendal industrial areas.  

Investment Regulations in Semarang 

It became a foundational reason expatriates chose to live in Semarang to do business in Indonesia. The investments in Semarang perceive through the development of residential, hotel, and apartment complexes. Other investors are also currently developing an industrial zone. 

The Semarang Government is also determined to streamline business processes by abiding by the regime introduced by the Omnibus Law. Further assistance will also address the issues that may arise on the investment. 

Semarang is to see an excellent capital injection in 2023. In this case, the Government of Semarang is preparing to issue a Regional Regulation regulating tax reductions, facilitating access to roads and lighting, and other stipulations to ease further and incentivize investors. 

InCorp Indonesia (formerly Cekindo) will help you to streamline your business process for investing in Semarang.

Government Support in Semarang

A Mayoral Regulation will be made before the Regional Regulation to address the same. 

Semarang Governmental Officials reveal that the regulations will also consider the benefits and advantages it holds over having airports, seaports, and toll roads that are highly accessible to attract the attention of big investors. 

Lastly, official levies are also regarded within the regulations and with certainty regarding the time for obtaining permits and licenses.

The entertainment sector is also receiving attention from investors as prominent actors like Raffi Ahmad are exploring the potential to collaborate with the Semarang Government.  

Read more: Why You Should Care About Preparing Growth Plans For Business

Valuable Business Sectors to Invest in Semarang for 2023

Notable business sectors that are integral to mention and discuss are the construction sector. Semarang welcomes the construction of a Superblock containing malls, hotels, and apartments with an investment value of IDR 2 trillion. 

Aside from that, Semarang is also anticipating the development in the industrial area of Tugu. The investment should have a multiplier effect so that the ongoing recession does not significantly impact Semarang. 

Priority Investments and Projects in Semarang for 2023

One of the priority projects for Semarang is the Waste Processing project in Jatibarang, whereby waste materials are further processed and transformed to become electrical energy that will benefit the citizens of Semarang. 

The project has excellent value and is one of the 4 (four) biggest ones to go through by the Semarang Government in the coming year. Apart from that, the city is also preparing to conduct a Semarang Expo Center. 

Tram train lines are also reactivated and are considered a big project. Particular areas like the Simpang Lima area are heading to become diamond areas by revitalizing the Baiturrahman Mosque, arranging hotel availability, and focusing on construction. 

1. Industrial Estate

Industrial areas like Kendal and Batang are committed to providing investors with the best service and opportunities. The aim is to improve infrastructure and welcome investors for Semarang to become a new economic corridor for Indonesia. 

The availability of infrastructure, gas networks, and varied modes of transportation poses a unique attraction for potential investors. The Semarang Government aims to inform industrial estate players regarding the advantages of investing in Indonesia. 

2. Infrastructure

Semarang is ambitious in developing its tram lines and underground public spaces. These two projects are to start in 2023, along with other equally large projects. 

The reactivation of the tram line in Semarang is valued at IDR 300 billion and is a project conducted along with PT KAI. Even though Semarang has an optimistic view of 2023, the Semarang Government still has homework to complete regarding investment. 

It aims to collaborate with the Central Government and private entities in the city’s development. The Semarang Government sets targets to achieve periodically and seeks to use the regional budget for the development of the people.

Setting Up a Business with InCorp Indonesia

Due to the positive trajectory, business actors looking to advance their investments in other parts of Indonesia should focus on Semarang. 

They may do so by seeking the help of InCorp Indonesia (an Ascentium Company) to assist with administrative and cumbersome processes on Company Registration and Business Licensing. InCorp Indonesia can advise you on the most suitable way to enter the market effectively.