East Java Provincial Government Prepares Integrated Strategy for Mitigating Global Crisis
Governor of East Java, Khofifah Indar Parawansa, held a public discussion with regents and mayors across East Java at the Negara Grahadi Building in Surabaya. The discussion, themed ‘Mitigation and Solutions for the Socio-Economic Impacts on East Java Due to Geopolitical Tensions between America-Israel and Iran’, also served as a momentum for halal bihalal in the atmosphere of Eid al-Fitr 1447 Hijriah.
This forum became a strategic space to strengthen synergy between the East Java Provincial Government and district/city governments in formulating integrated, adaptive, and responsive policies towards global developments, particularly geopolitical tensions that could potentially affect the energy, food, and logistics sectors.
The discussion, directly moderated by the Deputy Governor of East Java, Emil Elestianto Dardak, featured speakers from technocrats and academics, including the Secretary of the Coordinating Ministry for Economic Affairs Susiwijono Moegiarso (virtually), the Head of Bank Indonesia East Java Representative Ibrahim, and Development Economics Lecturer at Universitas Airlangga Gigih Prihantoro.
“We understand that global geopolitical dynamics have the potential to have a broad impact on the energy, food, and logistics sectors. This is a real risk that we must anticipate together,” said Khofifah, in a written statement, Thursday (26/3/2026).
Nevertheless, Khofifah emphasised that global challenges must be addressed by strengthening resilience as well as increasing regional adaptive capacity.
“Today’s challenges are not just about surviving, but about how to make East Java a resilient, adaptive region capable of seizing opportunities amid global dynamics,” she asserted.
As one of the national economic drivers, East Java has a strategic role with a contribution of 25.29 percent to the Java Island economy and 14.40 percent to the national economy. In 2025, East Java’s GRDP reached Rp 3,403.17 trillion with economic growth of 5.33 percent, supported by around 23.8 million working population.
East Java’s investment performance also shows a positive trend with a contribution of 7.5 percent to the national level and ranking third nationally. In the fourth quarter of 2025, East Java’s investment grew 31.6 percent quarterly and increased 11.4 percent annually, reflecting strong investor confidence.
In the logistics sector, East Java serves as a national distribution hub. Tanjung Perak Port serves 24 out of 41 sea toll routes and supplies nearly 80 percent of logistics to 19 provinces in eastern Indonesia, supported by 7 airports, 37 ports, and 12 toll road sections.
East Java is also the national rice barn with the highest rice and paddy production in Indonesia. The government’s rice reserves in the region reached 825.36 tonnes, the highest nationally, supported by the largest livestock population in Indonesia.
“Therefore, maintaining food security is no longer a choice, but a strategic necessity. East Java must become a region that is not only resilient to food crises but also a pillar of national food security,” she said.
To strengthen this resilience, the East Java Provincial Government continues to develop a food ecosystem from upstream to downstream through increased production, land optimisation, acceleration of subsidised fertiliser distribution, and strengthened distribution through the Jatim Agro-Hub programme.
Price stabilisation is carried out through market operations and affordable markets in 38 districts/cities, as well as optimisation of Regional Government Food Reserves (CPPD) to maintain supply and affordability of prices.
In the energy sector, Khofifah assured that the availability of fuel oil and LPG in East Java is safe and controlled, including during the 2026 Eid momentum. Nevertheless, she reminded that global energy price volatility remains a future challenge.
As a long-term strategic step, the East Java Provincial Government continues to accelerate the development of New Renewable Energy (NRE). To date, East Java’s NRE capacity has reached 709.13 MW from various sources, such as solar, water, biomass, to waste-to-energy processing.
In addition, energy efficiency policies and regional spending are continuously optimised in line with Presidential Instruction Number 1 of 2025, through the implementation of work from home (WFH), efficiency in official travel, and optimisation of virtual meetings.
In maintaining community economic resilience, the East Java Provincial Government also strengthens support for MSMEs through credit relaxation and restructuring policies, to maintain business continuity amid production cost pressures.
Meanwhile, social protection for vulnerable groups continues to be strengthened through various programmes, including PKH Plus, assistance for persons with disabilities, direct cash assistance for labourers, and capital support for poor and vulnerable communities.
“We also invite all elements of society not to engage in panic buying. The government guarantees stock availability and controlled subsidised fuel prices,” she stated.
Khofifah also emphasised that the key to facing these global challenges is synergy and mutual cooperation among all stakeholders.
“I believe that with strong synergy, East Java will not only be able to survive but also seize opportunities to strengthen regional economic independence,” she revealed.
Meanwhile, the Secretary of the Coordinating Ministry for Economic Affairs of the Republic of Indonesia Susiwijono Moegiarso conveyed that global dynamics impact all countries, including Indonesia. However, the national economic structure supported by domestic consumption makes the impact relatively more controlled, especially in East Java.
Susiwijono emphasised that the dominance of household consumption in the Gross Domestic Product (GDP) structure is an important factor in maintaining regional economic resilience, although several leading sectors remain potentially more quickly affected.
In addition, Susiwijono highlighted the challenge of longstanding structural distortion (LS