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

November 8, 2024

Bank Indonesia (BI) stated that Indonesian Sharia Economic Festival (FESyar) 2024 for Java Island in Surabaya City, East Java Province, recorded a high transaction commitment through business agreement activities or business matching at Rp23.59 billion.

BI East Java Province Representative Office Head Erwin G. Hutapea detailed on Sep. 17, 2024, that said transaction commitment included Rp7.41 billion in financing business matching and Rp16.18 billion in sales business matching. The transaction commitment was achieved from 92 offline and online business matching sessions during Fesyar Java 2024 from Sep. 13 to 15, 2024.

This business matching in the festival involved 27 financing institutions, encompassing 11 sharia banks and 15 zakat, infaq, sadaqah, and waqf (ZISWAF) institutions, three e-commerce platforms, and 20 potential buyers from both in and beyond Indonesia.

In addition, FESyar Java 2024 also recorded Rp4.7 billion of total micro, small, and medium enterprise (MSME) products sale involving 140 MSMEs online and 153 MSMEs offline. The sales were generated from 90,461 visitors coming to the festival.

FESyar Java 2024 itself is the last in the series of activities of the 11th Road to Indonesia Sharia Economic Festival (ISEF), which was held from Oct. 30 to Nov. 3, 2024 in Jakarta.

"We hope that the implementation of FESyar Java will continue to accelerate the development of sharia economics and finance at the regional level so that it could become one of the sources of national economic growth," Erwin stated.

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