Province

Yogyakarta

Overview Economy

Special Region of Yogyakarta

In southern Java, the Special Region of Yogyakarta stands as a provincial-level autonomous region and is the only officially recognized diarchy within the government of Indonesia. With a land area of just 3,170 square kilometers, it is the second-smallest province-level entity in the country after Jakarta. The region’s capital city, also named Yogyakarta, remains the only Indonesian royal city still under the rule of a monarchy, namely the Yogyakarta Sultanate.

Furthermore, the Special Region of Yogyakarta is renowned as a significant center for classical Javanese fine arts and culture such as ballet, batik textiles, drama, literature, music, poetry, silversmithing, visual arts, and wayang puppetry. The region is also a renowned center of Indonesian education, home to dozens of schools and universities and the largest student population in the country.

As of 2023, the population of the Special Region of Yogyakarta amounted to 3.7 million people, with a density of 1,173 people per square kilometer. The major ethnic group residing in the region is the Javanese, followed by Sundanese, Malay, Chinese, Batak, Madura, and Minangkabau, among others. Meanwhile, in terms of religion, the majority of the population adheres to Islam, though a significant portion of the indigenous Javanese community is also Christian or Catholic. Other religious groups present in the Special Region of Yogyakarta include Buddhism, Hinduism, and various other beliefs.

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Special Region of Yogyakarta’s economy

The Special Region of Yogyakarta boasts a robust economy, with its Gross Regional Domestic Product (GRDP) in 2023 reaching Rp 118.6 trillion. Among the key contributors to this thriving economy are the manufacturing sector, agriculture, forestry, and fishing sector, and the accommodation and food service sector.

The manufacturing sector contributed Rp 13.4 billion to the region’s 2023 GRDP, dominated by contributions from the manufacture of food products and beverages, amounting to Rp 7.3 billion. The agriculture, forestry, and fishing sectors contributed Rp 8.3 billion, with Rp 3.2 billion coming from food crops. In addition, the accommodation and food service sector contributed Rp 11.1 billion, with Rp 9.2 billion coming from food and beverage services.

The region also hosts several national strategic projects (PSN) covering various sectors, including toll roads, airports, dams, railways, industrial zones, energy, as well as clean water and sanitation. These PSNs include the Yogyakarta-Bawen toll road, the Solo-Yogyakarta-YIA Kulon Progo toll road, the Yogyakarta-Kulon Progo airport, as well as the Development Program of the National Strategic Tourism Area (DPSP) Borobudur.

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Latest News

June 25, 2025

The Public Works Ministry and highway state-owned enterprise (SOE) PT Jasa Marga subsidiary PT Jasamarga Jogja–Bawen, as the involved toll road enterprise, are accelerating the construction of the Yogyakarta-Bawen Toll Road. The toll road's section is targeted to be completed in multiple stages starting from the fourth quarter (Q4) of 2025 until the end of 2027.

Public Works Minister Dody Hanggodo stated that the Yogyakarta-Bawen Toll Road will be the main driver of economic growth and connectivity in the Yogyakarta-Surakarta-Semarang "golden triangle" region.

"This toll road will accelerate movement and create new economic opportunities for the surrounding communities. In addition, we expect to increase tourist visits and encourage local economic growth with easier access to Borobudur and various other tourist destinations [provided by the toll road]," he explained on June 4, 2025.

Public Works Ministry Highways Director General Roy Rizali Anwar explained that Yogyakarta-Bawen toll road's investment value reached Rp14.26 trillion, with a construction cost of Rp10.65 trillion.

"This toll road crosses two provinces, namely Central Java and the Yogyakarta Special Region (DIY), and will be part of the Trans Java Toll Road network connecting the Semarang-Solo Toll Road with the Solo-Yogyakarta-Yogyakarta International Airport (YIA) Toll Road in Kulon Progo," he explained.

The Yogyakarta-Bawen Toll Road has a total length of 75.12 km which is divided into six Sections. Section 1 JC Sleman–SS Banyurejo is 8.8 km long with land acquisition progress of 96.73 percent and construction progress of 77.32 percent, Section 2 SS Banyurejo–SS Borobudur is 15.2 km long with land acquisition progress of 91.6 percent, and Section 3 SS Borobudur–SS Magelang is 8.1 km long with land acquisition progress of 73.2 percent.

Then, Section 4 SS Magelang–SS Temanggung along 16.65 km with land acquisition progress of 36.54 percent, Section 5 SS Temanggung–SS Ambarawa along 21.39 km with land acquisition progress of 11.25 percent, and lastly Section 6 SS Ambarawa-JC Bawen along 4.98 km which is connected to the Semarang-Solo Toll Road with land acquisition progress of 95.8 percent and construction progress reaching 61.4 percent.

"The sections that are already under construction, namely Sections 1 and 6, are targeted for completion in the second quarter (Q2) of 2026 the fourth quarter (Q4) of 2025, respectively. For other sections, we will also accelerate land acquisition process so that construction could begin immediately. It [the project] is expected to be able to be completed by 2027-2028," Roy elaborated.

Public Works Ministry Toll Road Regulatory Agency (BPJT) Wilan Oktavian said that support from other relevant stakeholders is very much needed for the smooth acceleration of the Yogyakarta-Bawen Toll Road's construction.

"We ask for support, especially from our colleagues in House of Representatives Commission V and local governments, so the development not only progresses quickly but also provides real benefits for the [affected] communities," he said.

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