Indonesian Political, Business & Finance News

East Java pushes for new industrial zones beyond Ring 1 to spur investment

| Source: ANTARA_ID Translated from Indonesian | Economy
East Java pushes for new industrial zones beyond Ring 1 to spur investment
Image: ANTARA_ID

The East Java provincial government is pushing for the development of new industrial estates beyond the Ring 1 area through regulatory and infrastructure support to broaden investment and create jobs. Deputy Governor Emil Elestianto Dardak stated that the province hopes the Draft Law on Industrial Estates will provide affirmation for infrastructure development leading to new industrial zones, thereby increasing investment appeal.

According to Emil, building infrastructure to industrial estates is a crucial factor in boosting investor interest, particularly in areas currently being developed such as Tuban, Lamongan, and Ngawi. He assessed that developing industrial estates outside Ring 1 would promote more equitable investment distribution while opening new economic growth centres across various regions of East Java.

Beyond the industrial sector, Emil also encouraged central government support for the development of the creative economy. He noted that local governments require flexibility in engaging expert personnel with specific competencies, including in the fields of digital promotion and social media. Emil further proposed government support for opening new transport routes, such as Bali–Jember and Malang–Lombok, through an intervention scheme in the initial stages to enhance connectivity and drive growth in the tourism sector.

In the business sector, Emil reported that the distribution of People’s Business Credit (KUR) in East Java has reached more than IDR 31 trillion to approximately 690,000 debtors. This achievement demonstrates the growth of micro, small, and medium enterprises (MSMEs), which must be balanced with a strengthening of the business ecosystem. The East Java Provincial Government is also promoting the development of the Trowulan historical tourism area while prioritising cultural heritage preservation. Emil added that beyond area management, strengthening the creative economy through films themed on the Majapahit Kingdom could enhance tourism appeal while reinforcing regional economic growth.

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