Governor Khofifah Receives Indonesian Ambassador to Australia in Canberra and Australian Business Actors

SURABAYA – East Java Governor Khofifah Indar Parawansa received a working visit from the Ambassador of the Republic of Indonesia to Australia in Canberra, Y.M. Dr. Siswo Pramono, accompanied by Australian business actors and the Indonesian Leather Entrepreneurs Association (APKI) at the Negara Grahadi Building in Surabaya on Tuesday (31/3/2026) evening.

The Governor stated that the arrival of this delegation is highly strategic for strengthening bilateral cooperation between East Java and Australia, particularly for the development of East Java’s leather industry.

“This is a new hope for us; Mr Ambassador is helping us build connectivity and open opportunities for better development in the leather industry,” said Governor Khofifah, accompanied by Deputy Governor Emil Elestianto Dardak.

Additionally, it opens concrete and sustainable collaboration opportunities, especially in the processing and trade sectors, including the leather industry, which has significant potential for joint development.

“Mr Ambassador is providing space for East Java to access leather because our leather industry needs a larger supply, and he is helping with connectivity for provision, both for industry and for rambak,” she explained.

Khofifah revealed that East Java is one of the main national leather industry centres, concentrated in Sidoarjo, Magetan, Pasuruan, and surrounding areas. This industry covers several sectors, from leather tanning, footwear production, bags, and derivative products.

“Therefore, support for raw materials in the leather industry is still very much needed,” she added.

This visit is expected to serve as an entry point and hope for industry players facing several challenges, including limited quality raw leather supplies, the need for production technology modernisation, and demands for improved quality standards to meet export markets.

“Mr Ambassador conveyed that Australia is a beef supplier to the Middle East, so its standards are already halal-certified, and the slaughtering there is carried out in accordance with sharia principles. This is important for us as Muslims, ensuring the process is halal,” she clarified.

In the future, cooperation with Australia is expected to become increasingly strategic, particularly in providing high-quality raw leather materials, technology transfer for processing, and investments in downstreaming the leather industry.

Thus, it is hoped that the leather industry in East Java can open greater market opportunities both domestically and internationally, supported by halal raw materials.

“Because what we are bringing in is not consumer goods but raw materials that will be produced,” she said.

Khofifah assessed that relations between Indonesia and Australia need to be continuously directed towards concrete, mutually beneficial cooperation, oriented towards strengthening industrial supply chains.

Trade relations between East Java and Australia show a complementary character, although in recent years they have recorded a trade balance deficit for East Java.

“And I think this will also be a positive thing for increasing the productivity of the leather industry in East Java so it can develop further,” she stated.

Meanwhile, investment trends in East Java continue to rise in line with the region’s economic stability, ease of licensing through OSS, and investment policy support from the Provincial Government.

This is reflected in the GRDP growth of 6.66%, indicating high investor confidence in East Java as a strategic investment destination.

Geographically and economically, East Java serves as the Center of Gravity and New Gateway of the Archipelago, supplying nearly 80% of eastern Indonesia’s logistics. This is supported by 2 Special Economic Zones (SEZs), 13 Industrial Zones, 1 Halal Industrial Zone, 7 airports, 37 ports, and 12 toll road sections.

“The strategic location and robust logistics infrastructure make East Java further strengthen its position as the main centre for trade, education, and connectivity in the Eastern Indonesia region. This position makes East Java a potential partner for friendly countries, including Australia,” she explained.

The number one person in East Java emphasised that East Java is ready to be a strategic partner for Australia in Indonesia, with advantages in industry, trade, and regional connectivity sectors. The East Java Provincial Government hopes this momentum can be followed up concretely and sustainably, especially in developing the leather industry in East Java.

“Hopefully, this visit will further strengthen the good relations that have been established and become the beginning of more productive collaboration that benefits both parties’ communities,” she hoped.

Meanwhile, the Ambassador of the Republic of Indonesia to Australia in Canberra, Y.M. Dr. Siswo Pramono, said that Indonesian business with Australia in the cattle sector is quite significant.

His visit this time, bringing Australian business actors and the Indonesian Leather Entrepreneurs Association (APKI), is part of a tour organised to invite APKI to see abattoirs or animal slaughterhouses in Australia that are specifically for halal products.

“We support the leather industry in Indonesia, both for shoe leather, bags, and so on, as well as for food,” said Siswo Pramono.

He assured that the animal slaughterhouses in Australia specifically for halal products already implement sharia-compliant animal slaughter procedures. Thus, their halal status can be guaranteed. Because Australia itself is a beef supplier to the Middle East region.

“This is what we are bringing here to create synergy; this is the second tour—the first tour we brought friends from here to see in Australia, and this second tour we brought Australian entrepreneurs to see the potential in Indonesia,” he said.

“So we buy the leather, but they will invest in our leather industry, so it’s a win-win,” he added.

Also present at this visit was the Minister Counsellor for Economic Affairs.