The Bandengan beach tourism project in Jepara regency, Central Java, began in 2018. It has been part of the Investment Coordinating Board (BKPM)’s 47 priority projects. The investment of this project worth IDR 33.2 billion.
Central Java province offers many untapped opportunities, including in Jepara. The province area spans 32,801 square kilometers (sqm) and its capital is in Semarang. Data in 2019 recorded Central Java had a population of 34.55 million. The province overall has two investment opportunities, 8 industrial regions, 5 airports, 11 ports, 127 educational facilities, 358 hotels and 283 hospitals.
Jepara regency is located in the north west of Semarang. It has an area of 24.67 sqm. The regency in 2019 had a population of 1.258 million.
Founded in 1973, the BKPM is a government institution dealing with investment projects all over Indonesia and is responsible for implementing policies regarding investments and coordinating projects in the country. Investment Minister Bahlil Lahadalia has chaired the board since 2021.
Opportunities behind Bandengan beach
Bandengan beach has been developed since 2018 with an investment of IDR 33.2 billion. The beach – also known as Prawean beach or Tirta Samudra beach – will become the economic driver of the regency in the future by cooperating with a third party to develop the beach with needed facilities to attract tourists.
The project has many potentials to develop its beach, especially the village adjacent to it. In order for this plan to be realized immediately, tourist facilities are being prepared.
Its potential consists of white sand beaches facing Panjang Island and Kartini Island. The beach provided facilities to take a rest, and eat while enjoying local attractions and entertainments.
“We have received offers from tourism agencies, who are ready to bring in tourists to the beach complete with attractive tour packages,” said Bandengan village head H. Sumadi.
Uncertainties of the project
However, the project does not have an interest rate of return (IRR), a net present value (NPV) or even a payback period according to BKPM.
There are also rumors of the uncertainty of funds surrounding the project.
“There is news about the uncertainty of village funds in the future. If in the future the government really scraps the funds, the village administration must be creative in finding other sources of funds. So far, the village fund has been the supporter of the development,” Sumadi said on August 31, 2022.
