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

February 13, 2025

Sumenep Regency's realized investment reached Rp2.7 trillion in 2024, exceeding the Rp2.5 trillion target for the eastern Madura Island region. The Sumenep Regency Government is optimistic that investment will continue to grow in 2025, accordingly setting the investment target higher at Rp2.8 trillion for 2025.

Sumenep Regency Investment and One-Stop Integrated Services Office (DPMPTSP) Head Abdul Rahman Riadi, revealed that the sectors that most attract investors to Sumenep are micro, small, and medium enterprises (MSMEs), tourism, as well as agriculture.

He added that the ease of processing business permits is one of the driving factors for increased investments to Sumenep Regency. Currently, permits for medium to small scale businesses could be processed directly at the district level, while large businesses could process theirs at Public Service Malls (MPP).

"We continue to strive to create a welcoming investment climate by improving infrastructure and simplifying the [business] licensing process," said Rahman on Jan. 15, 2025.

In addition, the government is actively promoting the natural and cultural potential of the region to attract investors, such as beach tourism, culinary offerings, and local crafts. Sumenep hopes the various strategies it pursued would help it continue to be an investment-friendly area, which will in turn open up more jobs and encourage sustainable regional economic growth.

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