Header Top Bar

WhatsApp Us +62 813 3355 7116
Why Central Java is the best place to retire in Indonesia

Retirement is a time to enjoy your life at your own pace, and finding the right place to do that makes all the difference. Central Java, located in the heart of Indonesia, is becoming a popular destination for retirees who want a peaceful, affordable, and culturally rich environment.

Whether you prefer a lively city atmosphere or a calm mountain town, Central Java has something for everyone. We will explore what makes this region special and how you can easily move there.

Why choose Central Java

Central Java is one of the best places to retire in Indonesia. Located in the center of Java Island, it’s surrounded by West Java, Yogyakarta, East Java, and the Java Sea. Semarang is its capital.

The region is home to famous heritage sites like the Borobudur Temple and offers a deep connection to Indonesia’s history and traditions. It combines rich culture with a calm, welcoming atmosphere that many retirees find comforting and inspiring.

The natural beauty of Central Java is just as impressive. From peaceful beaches to scenic mountains like Merapi, Merbabu, and Slamet, the province offers a cool and refreshing environment perfect for relaxing. With over 30 million residents, the area provides a vibrant yet laid-back lifestyle, fertile landscapes, and a lower cost of living, making it a satisfying option for retirement.

Why you should retire in Central Java

Why Central Java is the best place to retire in Indonesia

Central Java offers everything you need for a happy, worry-free retirement. Its peaceful and charming environment makes it a bright and comfortable settling place.

Here’s why it deserves a spot at the top of your retirement list:

1. Affordable Living Cost

Life in Central Java is much cheaper than in Jakarta or Bali. Housing, food, transportation, and healthcare cost less, so your money goes further.

Whether you prefer renting a house or buying property, the prices here are much more reasonable, giving retirees the freedom to live comfortably on a modest budget.

2. Quality Healthcare Services

Cities like Semarang and Solo have modern hospitals with trained doctors. Good medical care is available without spending too much, which is essential for your health and peace of mind.

3. Calm and Clean Environment

Many areas in Central Java, especially the highlands, have fresh air and cooler temperatures. It’s quiet and peaceful, perfect for relaxing and staying healthy.

4. Friendly Communities

Javanese people are kind, polite, and welcoming. The slower pace of life and strong community ties make it easy to build friendships and feel at home, even if you’re new to the area or don’t speak Bahasa Indonesia fluently.

5. Access to Travel and Leisure Activities

With its central location, traveling to other parts of Indonesia or Southeast Asia for getaways is simple from local airports. Locally, it also offers various scenic spots, including lakes, waterfalls, beaches, and ancient temples, perfect for retirees who love to explore.

6. Long-Term Residency Options

Indonesia offers a Retirement KITAS (limited stay permit), making it easy for foreigners over 55 to live there. Central Java, especially cities like Semarang, is increasingly supporting expat communities with services to assist in the visa process, house rentals, and settling in smoothly.

7 best places to retire in Central Java

Central Java offers many best places to retire in, each with a unique charm and lifestyle. Here are seven of the best cities and regions to consider:

1. Semarang

As the capital of Central Java, Semarang is a vibrant city that blends modern living with historical charm. It has good hospitals, shopping malls, international schools, and a growing expat community. The city’s colonial architecture, bustling food scene, and easy airport access make it a favorite for retirees who want convenience without the crowds of Jakarta.

2. Dieng Plateau, Wonosobo

Dieng Plateau is high in the mountains and offers a calm, refreshing atmosphere. The area is quiet and surrounded by natural beauty, with misty hills, volcanic craters, and green fields. It’s perfect for those who prefer cooler weather, scenic views, and a less busy lifestyle.

3. Karimunjawa

Karimunjawa is the best place for those who dream of retiring by the sea. This group of islands in the Java Sea is known for its clear waters, coral reefs, and relaxed island lifestyle. It’s ideal for beach lovers, divers, and anyone looking for peace and beauty in a tropical setting.

4. Yogyakarta

Although it has its special region, Yogyakarta has close cultural ties with Central Java, which is known for its arts, traditional crafts, and royal heritage. With a low cost of living, rich history, and youthful vibe, Yogyakarta is great for retirees who enjoy learning and staying active.

5. Wonosobo

This mountain town offers clean air, quiet streets, and stunning scenery. With fewer crowds and more space, Wonosobo is perfect for retirees who want a slower and simpler life.

6. Salatiga

Located between Semarang and Solo, Salatiga is known for its harmonious social environment where people live peacefully, regardless of religion or ethnicity. The city offers incredible weather, clean streets, and convenient access to major highways.

7. Solo

Known for its rich Javanese tradition, Solo has modern facilities, good healthcare, and an affordable lifestyle. Solo offers a deep cultural experience for retirees who love history and art but still want easy living.

Start a seamless retirement journey in Central Java with InCorp

Central Java is a great place to begin a peaceful and fulfilling retirement. To make the process easier and avoid the hassle of paperwork, InCorp Indonesia (An Ascentium Company) supports you with our reliable Retirement KITAS service, making your move smooth and worry-free.

Whether you plan to live in vibrant Semarang, unwind in the cool hills of Wonosobo, or enjoy island life in Karimunjawa, our experienced team will handle every step. You can focus on settling in and enjoying your retirement while we care for the rest.

Please fill out the form below, and let us help you start your new chapter with ease and peace of mind.

Written by Setiyani Prabowo [CSR, Semarang]

Get in touch with us.

Contact Us

What you'll get

A prompt response to your inquiry

Knowledge for doing business from local experts

Ongoing support for your business

Disclaimer

The information is provided by PT. Cekindo Business International (“InCorp Indonesia/ we”) for general purpose only and we make no representations or warranties of any kind.

We do not act as an authorized government or non-government provider for official documents and services, which is issued by the Government of the Republic of Indonesia or its appointed officials. We do not promote any official government document or services of the Government of the Republic of Indonesia, including but not limited to, business identifiers, health and welfare assistance programs and benefits, unclaimed tax rebate, electronic travel visa and authorization, passports in this website.

    Daris Salam

    COO Indonesia at InCorp Indonesia

    With more than 10 years of expertise in accounting and finance, Daris Salam dedicates his knowledge to consistently improving the performance of InCorp Indonesia and maintaining clients and partnerships.

Frequently Asked Questions

    A newly established PMA company in Indonesia is typically provided with import facilities, tax holidays, tax allowances, or investment allowances.

    • Import facilities
      Investors in Indonesia, particularly in manufacturing, may benefit from import tax exemptions for capital goods and raw materials through the Master List Facility. The imported goods must meet specific criteria, such as not being produced locally or not meeting industry demand despite local production.
    • Tax holiday
      The government offers CIT reductions of 50% or 100% for 5–20 years for listed pioneer industries, based on investment value. After this period, a CIT reduction of 25% or 50% applies for two fiscal years. Non-listed sectors can also apply by meeting criteria demonstrating pioneer industry status.
    • Pioneer industries are industries that have a wide range of connections, provide additional value and high externalities, introduce new technologies, and have strategic value for the national economy.

    • Tax allowance
      For companies in certain designated areas or regions, the government may provide the following tax concessions:
      Net income reduction up to 30% of the amount invested, prorated at 5% annually for six years, on condition that the assets invested are retained for the same duration.
      Accelerated depreciation and/or amortisation deductions
      An extension of tax losses carried forward for a maximum of ten years
      A 10% (or lower if treaty relief is available) withholding tax rate on dividends paid to non-residents
      The applicant eligible has to meet high-level-criteria for the above tax facilities:
      High investment value or for export purposes
      High manpower absorption
      High level of local content
    • Investment allowance
      The government offers a reduction in net income of up to 60% of the investment, distributed at 5% annually over six years of commercial production, contingent upon the retention of invested assets for the same duration. To qualify, applicants must meet business line eligibility criteria and employ a minimum of 300 Indonesian workers in the project.
    • Super deduction
      This facility could be granted to certain businesses, such as:
      60% reduction in net income of the amount of tangible fixed assets invested for labor-intensive industries, distributed throughout a certain time frame.
      Up to 200% reduction in the gross income of the amount spent for human resources development in certain competency activities.
      Up to 300% reduction in gross income of the amount spent for certain R&D activities in Indonesia.

    Foreign investors need to have a minimum of IDR 10 billion in authorized capital, IDR 10 billion in paid-up capital, and IDR 1 billion in personal shares for applying for Investor KITAS/ITAS in Indonesia.

    The government will check the minimum paid-up capital, IDR 10,000,000,000. Fulfilling this requirement is a must.

    Indonesian Company Law establishes a two-tier governance system with Directors managing day-to-day operations and representing the company, while the Board of Commissioners supervises and advises them. The articles of association may empower board of Commissioners to provide consent or assistance to Directors for specific legal acts.

More on Immigration