East Java offers JIIPE as investment destination for Finland

East Java Deputy Governor Emil Elestianto Dardak received a courtesy call from Finnish Ambassador to Indonesia H.E. Jukka-Pekka Kaihilahti at the Shangri-La Hotel in Surabaya City, East Java. The visit on Apr. 29, 2025, is a strategic moment to strengthen Finnish-Indonesian bilateral cooperation, especially in the fields of investment, trade, forestry, and sustainable industrial development.

In the meeting, Emil offered the Java Integrated Industrial and Ports Estate (JIIPE) Special Economic Zone (SEZ) in Gresik Regency as a leading investment destination for Finland. The SEZ is a modern integrated industrial area equipped with a seaport and designed to support an environmentally friendly industrial ecosystem.

"The JIIPE SEZ is a symbol of East Java's commitment to creating a globally competitive investment environment. We invite Finland to participate in its development," said Emil.

East Java recorded deficits for its balance of trade (BoT) with Finland from 2020 to 2023 based on data from the Indonesian ministries of Industry and Trade. But the province succeeded in recording US$11.91 million BoT surplus with the Nordic country, as exports from East Java to Finland reached US$31.7 million while imports reached US$19.79 million.

East Java's main export commodities to Finland include copper, paper and cardboard, electrical machinery and equipment, vehicles and their components, as well as rubber and wood products. Meanwhile, imported goods from Finland include mechanical machinery, pulp, plastic, adhesives, enzymes, and pharmaceutical products.

Finland is recorded as the 56^th largest investor into East Java, with a total investment value of US$250,000, spread across three companies in the chemical, pharmaceutical, as well as the trade and repair sectors. Emil conveyed the readiness of the East Java Provincial Government to facilitate further exploration on cooperation between the province and Finland, including in a follow-up visit to the Finnish Embassy in Jakarta.

In response, Kaihilahti welcomed East Java's invitation to cooperate and expressed Finland's deep interest in the forestry and forest product manufacturing sectors, including in their technology, marketing, and sustainability. He also mentioned the energy, agriculture, and mineral processing sectors as having promising potential for bilateral collaboration.

"We see great opportunities in East Java for collaboration in the fields of sustainable forestry and smart cities, including education and digitalization," said Kaihilahti.

He added that on a delegation of Finnish companies planned to visit the JIIPE SEZ, which has collaborated with several industrial partners such as PT Freeport Indonesia (PTFI).

"We want to explore the collaborations that has been executed through large Finnish companies such as Konecranes, Wärtsilä, and Metso, as well as explore new potential [cooperations]," he explained.

Examples of cooperation between Finnish and Indonesian parties is the use of Finnish technology in the Freeport smelter project and various industrial facilities in the JIIPE SEZ.