Indonesian Political, Business & Finance News

East Java Government Appreciates GIIAS Surabaya 2026 for Strengthening Regional Manufacturing

| Source: ANTARA_ID Translated from Indonesian | Economy
East Java Government Appreciates GIIAS Surabaya 2026 for Strengthening Regional Manufacturing
Image: ANTARA_ID

The Provincial Government of East Java has expressed appreciation for the staging of the GAIKINDO Indonesia International Auto Show (GIIAS) Surabaya 2026, which is seen as strengthening the manufacturing sector as the main pillar of the region’s economy.

Acting Head of the East Java Industry and Trade Office, Iwan, said that holding GIIAS in Surabaya also helps drive industrial activity and economic dynamism in East Java.

“East Java’s economy grew by 5.84 percent year-on-year in the second quarter of 2026, the highest growth on Java and exceeding national economic growth,” Iwan said at the opening of GIIAS Surabaya 2026 in Surabaya on Wednesday.

He explained that the manufacturing sector is the largest contributor to East Java’s economy with a share of 31.27 percent, followed by trade at 18.49 percent and agriculture at 10.87 percent.

Strengthening the manufacturing sector, including the automotive industry, is important because it is sensitive to geopolitical and geo-economic dynamics that can affect economic activity in East Java, he said.

The potential of East Java’s automotive industry is also reflected in international trade performance, which shows an increase in export value in recent years, he added.

In detail, the export value of East Java’s automotive industry was recorded at 447.17 million US dollars in 2023, then 442.25 million US dollars in 2024, and rose to 510.22 million US dollars in 2025.

“The export value jumped significantly to 510.22 million US dollars, with the main destination countries being Japan, the United States and Timor-Leste,” he said.

According to him, based on BPS data, the trade balance for East Java’s automotive industry products also shows that import value remains far smaller than export value.

This condition, he continued, demonstrates the great potential for East Java’s automotive industry to improve its competitiveness in both domestic and international markets.

He therefore expressed hope that the automotive industry can grow independently and sustainably through increasing local content, strengthening the domestic supply chain, and mastering industrial technology.

In addition, human resource development and consistent policy support are key to boosting the competitiveness of East Java’s automotive industry, he added.

“Our hope is that through this event East Java can innovate and develop ideas as well as value engineering to increase product added value and competitiveness in the automotive industry,” he said.

Meanwhile, GAIKINDO Chairman General Putu Juli Ardika said East Java plays an important role in national vehicle sales as it consistently ranks third.

“East Java has a very important role in national vehicle sales, where based on car sales data up to April 2026, East Java consistently ranks third nationally, contributing 9.1 percent of national sales,” he said.

He noted that the size of the market potential is also reflected in the number of passenger cars in East Java, which reached 5.58 million units based on Statistics Indonesia data as of 23 February 2026.

GIIAS Surabaya 2026 is therefore an important platform for introducing automotive technology developments while expanding the national market by capitalising on East Java’s market potential, he added.

Putu said GIIAS Surabaya has been an important host city for the GIIAS The Series over the past 10 years, and this year marks the largest staging with an area of 15,000 square metres.

“This year it involves 37 motor vehicle brands and 25 automotive supporting industry brands, including 14 new brands and those returning to join GIIAS Surabaya 2026,” he said.

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