Province

East Java

East Java

East Java is located in the easternmost third of Java island, boasting an area of 48,036.84 square kilometers, making it the largest province among the six provinces on the island of Java. The province comprises 29 regencies and nine municipalities, including Batu, Blitar, Kediri, Madiun, Malang, Mojokerto, Pasuruan, Probolinggo, and Surabaya. Notably, Banyuwangi is East Java’s largest regency, covering an area of 3,502.9 square kilometers, while Mojokerto is the province’s smallest municipality, spanning a mere 20.22 square kilometers. Furthermore, East Java’s capital city, Surabaya, is the second-largest city in Indonesia and serves as a major industrial and business center.

As of 2023, the total population of East Java stands at 41.53 million people, experiencing a 0.77 percent population growth from 2020 to 2023. The majority of this population are Javanese and Madurese. Ethnic diversity is evident in East Java, particularly among the Javanese, who belong to various sub-ethnic groups scattered across the region, except in Situbondo and Bondowoso. As for the Madurese, they predominantly inhabit Madura island and parts of Tapal Kuda in the eastern region, with the Madurese Pendalungan group being prevalent in certain areas. Additionally, minorities of Madurese can be found in most cities, mainly engaged in the informal sector. Other indigenous groups include the Kangean and Bawean people on their respective islands, the Tenggerese in the Tengger Mountains, the Osing in parts of Banyuwangi, and the Samin in some remote areas of Bojonegoro.

In addition to the native population, East Java is home to a diverse range of ethnicities. The Chinese community is notably significant, particularly in urban areas, alongside Arabs, Pakistanis/Punjabis, Indians, and Korean Indonesians. Balinese communities are also present in various villages across Banyuwangi and are minorities in most districts of East Java. Moreover, East Java hosts a sizable expatriate population, predominantly in Surabaya and other industrial zones.  

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East Java’s economy

East Java’s economy has experienced consistent growth over the years. According to data from the East Java Central Statistics Agency (BPS), the province recorded Rp 1.8 trillion of Gross Domestic Regional Product (GRDP) in 2023, making it the second-largest province in Indonesia in terms of GRDP after DKI Jakarta.

In terms of industries, East Java boasts several major players. PT Pal in Surabaya stands out as the largest shipyard in Indonesia, while PT Pindad in Malang specializes in combat equipment, and PT INKA in Madiun stands as the largest railway industry in Southeast Asia. Additionally, in the energy sector, Bojonegoro plays host to the Cepu Block, one of Indonesia’s largest oil producers.

Moreover, PT PJB also manages power generation in East Java, including hydroelectric, coal-fired, and gas-fired power plants, supplying electricity to the Java-Bali grid. Therefore, it comes as no surprise that the province’s economic growth in 2023 was mainly supported by the electricity and gas sector, contributing Rp 6.2 billion to the GRDP, followed by the transportation and storage sector with Rp 60.3 billion, as well as other service activities contributing Rp 26.4 billion.

A special economic zone (SEZ) is also being developed in East Java, specifically in Gresik. Benefiting from its geographical advantage, with Madura island serving as a natural breakwater, the Gresik SEZ is a tsunami and earthquake-free industrial zone. The SEZ is said to focus on primary activities such as nickel and steel smelting, electronics, petrochemicals, and energy. It is estimated that the Gresik SEZ will provide employment for approximately 199,818 people by 2030.

Furthermore, East Java hosts national strategic projects (PSNs) in various sectors including toll roads, airports, railways, dams, energy, as well as clean water and sanitation. However, the most prominent sectors of the province’s PSNs are toll roads and dams. Notable toll roads listed in East Java’s PSNs include the Pandaan-Malang toll road, Pasuruan-Probolinggo toll road, Probolinggo-Banyuwangi toll road, Krian-Legundi-Bunder-Manyar toll road, flyover from and to the Teluk Lamong Terminal, and the Ngawi-Kertosono-Kediri toll road. Meanwhile, dams such as the Bendo dam, Gongseng dam, Tukul dam, Semantok dam, Bagong dam, and Karangnongko dam are also included as PSNs.

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Latest News

April 16, 2026

Surabaya — The North Kolaka regency administration is stepping up efforts to accelerate regional industrialization by actively courting international investors through a two-day investment roadshow in Surabaya.

The “Kolaka Utara Industry, Trade and Investment Visit”, held on April 15–16, is part of a broader push to promote downstream processing of key commodities, particularly cocoa and coconut, as the region seeks to move up the value chain.

The visit was led by North Kolaka Regent Nur Rahman Umar, accompanied by the regency’s industry office head Andi Haerul Rijal. The event was facilitated by the EDC Forum, with Tenggara Strategics serving as a knowledge partner.

Surabaya was chosen for its strategic role as a hub for foreign consulates and trade offices covering eastern Indonesia, providing direct access to international investor networks.

Focus on downstream industries

During a series of meetings, the regent emphasized that the initiative aims to invite investors and business actors from partner countries to establish concrete collaborations.

The primary focus is on developing downstream agribusiness industries, particularly cocoa processing. Targeted products include cocoa powder, cocoa liquor and cocoa butter.

Beyond cocoa, North Kolaka is also promoting investment opportunities in other commodities such as coconut, cloves, essential oils and palm sugar. Opportunities are also open in tourism, fisheries and mining.

Engaging international partners

The delegation began its engagements with representatives from the Australian Trade and Investment Commission (Austrade) and the Taipei Economic and Trade Office (TETO) in Indonesia.

Austrade highlighted potential areas for cooperation between Indonesia and Australia, including resource-based industries, industrial capacity building, and investment and technology support.

Meanwhile, TETO outlined its role in facilitating economic cooperation between Indonesia and Taiwan, focusing on trade, investment, technology transfer and industrial partnerships, particularly in manufacturing and modern agribusiness.

The delegation also met with representatives from Germany through EKONID, the German-Indonesian Chamber of Industry and Commerce. Discussions focused on potential collaboration in coconut processing, including technology transfer, product quality improvement and access to European markets.

Dutch interest in cocoa sector

The first day concluded with a meeting at the Netherlands Business Support Office (NBSO) in Surabaya, where discussions centered on the region’s cocoa potential.

North Kolaka has approximately 75,000 hectares of cocoa plantations, but only around 25,000 hectares are currently optimally managed. With strong demand for cocoa in Europe, the Dutch side expressed interest in facilitating partnerships between North Kolaka and chocolate industry players in the Netherlands, particularly for downstream processing.

Toward concrete agreements

The roadshow serves as a precursor to the Kolaka Utara Industry, Trade and Investment Coffee Morning scheduled for May 11 in Surabaya, where the regency aims to deepen engagement with potential partners.

Regent Umar expressed hope that the initial meetings would lead to more intensive communication and concrete cooperation.

“We hope these initial connections can be followed up with tangible partnerships. With support from consulates and trade offices, we also expect business actors from partner countries to attend and explore direct collaboration,” he said.

The administration is targeting the signing of Letters of Intent (LoIs) across several strategic sectors as a first step toward realizing investment commitments.

Through this proactive approach, North Kolaka aims to reposition itself from a raw commodity producer into a value-added industrial hub, with the goal of boosting regional economic growth and improving local livelihoods.

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