Yogyakarta has been developing a convention hall, a hotel and a showroom since 2018, which is one of the Investment Coordinating Board (BKPM)’s 47 national projects, with an investment of IDR 115.9 billion.
Yogyakarta is a special provincial region in Indonesia, which is ruled by a sultan who also serves as the governor of the province. The province is an important center for classical Javanese fine arts and culture such as traditional dance, batik, drama, literature, music, poetry, silverware, visual arts and wayang puppetry. Yogyakarta is the center of Indonesian education and home to a large student population with many schools and universities such as the Gadjah Mada University, one of the biggest and prestigious university in the country. The population of the province was around 7.94 million in 2021, according to Statistics Indonesia (BPS).
Meanwhile, the BKPM is the main government institution that deals with investment projects all over Indonesia and implements policies on investments and coordinates projects across the nation. The board was established in 1973. Investment Minister Bahlil Lahadalia has chaired the board since 2021.
Investment opportunities
Yogyakarta province offers eight investment opportunities whereas the convention hall, showroom and hotel are one of them. The province has one industrial center, two airports, 120 educational institutions, 78 hotels and 72 hospitals.
The convention hall – which connects to a showroom and a hotel – has a high potential for investments as it is located in the area of Yogyakarta International Airport. Around the area of the project, there are a lot of entrepreneurs whose products are ready for export. The planned showroom will help them display their products for incoming tourists so they can earn higher revenue. It will be highly ideal for investors since the showroom is connected to a hotel and a convention center.
Potential natural disasters
With the active volcano Mount Merapi nearby, Yogyakarta is facing potential natural disasters especially earthquakes and volcanic eruptions. According to the Meteorology, Climatology and Geophysics Agency (BMKG), there are potential areas prone to earthquakes in the megathrust zone in South Java. The agency advised the provincial administration to strengthen building structures in the area to minimize damages. Megathrust is a plate subduction zone with a shallow depth of less than 50 kilometers.
Head of National Search and Rescue Agency (Basarnas) Vice Marshal FHB Sulistyo said during the 2016 INSARAG Asia Pacific Regional Earthquake Response Exercise that Yogyakarta was like a “market” of natural disasters starting from earthquakes, volcanoes, tsunamis, floods and landslides. As a note, the Mount Merapi last major eruption occurred in 2010, claiming the lives of 353 people.
