Banyuwangi's Economy Grows by 5.65%, These Are the Driving Sectors
Data from the Central Statistics Agency (BPS) records that Banyuwangi’s economic growth continued to rise in 2025, reaching 5.65 per cent, higher than that of East Java and the national level. This growth is attributed to the policies of Banyuwangi Regent Ipuk Fiestiandani in the business sector.
“In 2025, Banyuwangi’s economy grew well, supported by growth in all business sectors,” said the Head of the Banyuwangi Central Statistics Agency, Abdus Salam, in a written statement on Wednesday (8/4/2026).
Based on BPS data, cumulatively from January to December 2025, the economy in Banyuwangi experienced growth of 5.65 per cent. This is higher than East Java’s 5.33 per cent and the national 5.11 per cent.
Abdus stated that the sector with the highest growth in 2025 compared to 2024 was the services sector, particularly tourism, which surged to 8.64 per cent, followed by the transportation and warehousing sector at 8.4 per cent.
“The tourism sector experienced the highest growth in line with the increase in tourist visits, both domestic and international, which rose by 8.26 per cent from the previous year. This was followed by the transportation services sector, which increased by 8.4 per cent, due to improved mobility across various modes of transport including trains, buses, and aeroplanes,” explained Abdus.
In addition, according to Abdus, Banyuwangi’s economic growth was also supported by three main contributing sectors: agriculture, trade, and construction.
“Structurally, agriculture in Banyuwangi remains the highest economic contributor, with growth of 4.36 per cent from the previous year. One indicator is the production of milled dry grain, which increased by 15.83 per cent compared to the previous year,” said Abdus.
Abdus added that realisations of foreign direct investment (PMA) and domestic investment (PMDN) also rose cumulatively in 2025.
“In 2025, there was no sector of employment that experienced contraction in Banyuwangi; all grew,” stated Abdus.
The Chairman of the Indonesian Young Entrepreneurs Association (HIPMI) Banyuwangi, Ferdy Elfian, said that the growth of business sectors in Banyuwangi is inseparable from the appropriate policies.
“Regent Ipuk’s policies, which position tourism as the main umbrella or driver of the regional economy with a focus on sustainable and community-based tourism (village tourism), are very apt,” said Ferdy.
“The result is that tourist visits to Banyuwangi continue to rise. Many people come to Banyuwangi, creating opportunities for many communities, especially young people in villages, to engage in the tourism sector. These policies also continue to grow the creative economy in Banyuwangi,” added Ferdy.
Furthermore, Regent Ipuk’s attention to the agriculture sector, which encourages young people to become interested in farming by providing stimuli through the Jagoan Tani programme and others, has also had a positive impact.
“Now, many young people in Banyuwangi are interested in entering the world of agriculture and its derivatives,” concluded Ferdy.