Capital that sustains citizens

Amidst increasingly fierce global competition, Surabaya is offering an interesting lesson. The city is attempting to demonstrate that investment is not merely about the capital that arrives, but about the benefits that remain.

Surabaya (ANTARA) - There are cities that pursue investment simply to chase numbers. There are also cities that strive to make investment a pathway to expanding prosperity. Surabaya, East Java, appears to have chosen the second path.

This choice was reaffirmed through the recent hosting of the Anugerah Investa Surabaya (AIS) 2025 at the Surabaya City Hall, themed ‘Surabaya: A World-Class Investment Gateway’.

At first glance, this event may appear to be a mere ceremony for presenting awards to business actors. However, upon closer inspection, AIS carries a much larger message. Investment is no longer viewed solely in terms of the magnitude of incoming capital, but as an instrument to create jobs, strengthen micro, small, and medium enterprises (MSMEs), and reduce poverty.

This perspective is noteworthy as it develops amidst intensifying competition between regions vying for investment. Many local governments are racing to offer fiscal incentives, ease of licensing, and the development of industrial zones. Unfortunately, many investments stop at statistical records; capital investment values increase, yet the benefits are not fully felt by the surrounding community.

Surabaya is attempting to introduce a different metric. In AIS 2025, companies are not judged solely on the amount of capital invested. Compliance with regulations, business legality, and commitment to absorbing local labour are primary indicators. Furthermore, partnerships with MSMEs are included as part of the assessment.

This approach reflects a paradigm shift in investment that is currently being developed in many countries. International organisations such as UNCTAD, in recent World Investment Reports, have emphasised the importance of sustainable investment—investment that does not merely generate economic profit but also creates social and environmental benefits.

Indonesia is also moving towards a similar concept. Through the Ministry of Investment/BKPM, the government continues to encourage quality investment: investment capable of creating added value, expanding employment opportunities, increasing national industrial capacity, and strengthening the local economy.

In this context, Surabaya’s steps hold strong relevance. The city is not merely becoming a destination for capital, but is striving to ensure that every investment leaves a footprint of prosperity.