That value is, on Windows at least, the legacy codepage used for non-Unicode text. It's what the OS converts strings to and from when you use the old ANSI APIs. For any newer program it should have no effect (that being said, I still see enough programs that use the A and not the W variants of API functions, sadly).
For you Java program none of that should matter, as Java uses Unicode exclusively. If you want to write or read text files in the system's codepage, then you'll need it, however.
For the command prompt, however, that encoding is of no significant value, as the console by default uses the OEM encoding which mimics the one of the DOS ages (850 or 437 is pretty common).