Indonesian Political, Business & Finance News

Khofifah Leads East Java-Riau Trade Mission, Secures IDR 1 Trillion in Transactions

| Source: DETIK Translated from Indonesian | Trade
Khofifah Leads East Java-Riau Trade Mission, Secures IDR 1 Trillion in Transactions
Image: DETIK

East Java Governor Khofifah Indar Parawansa personally led the East Java-Riau Trade and Investment Mission, held at the Novotel Pekanbaru Hotel Ballroom on Wednesday (8/7/2026). The trade mission, also attended by Riau Provincial Secretary Syahrial Abdi, succeeded in recording committed transactions worth Rp 1,066,031,400,000.

The recorded transactions demonstrate the strengthening synergy between businesses in the two provinces in expanding trade, reinforcing inter-regional supply chains, promoting domestic market integration and boosting investment.

This year’s figure represents an almost threefold increase compared with the East Java-Riau Trade and Investment Mission held on 5 March 2020 in Pekanbaru, which generated Rp 362.12 billion in committed transactions across 51 trade deals.

Governor Khofifah explained that the East Java-Riau Trade Mission was the fifth trade mission organised by the East Java Provincial Government during 2026.

According to her, each trade mission is always directed at strengthening inter-regional partnerships through collaboration involving regional governments, regional apparatus, the business community and various supporting institutions.

“For 2026, this is the fifth trade mission. What we consistently build is the strengthening of inter-provincial partnerships. That is why we continue to carry the spirit of growing together, advancing together, developing together, and prospering together,” Khofifah said in a written statement on Wednesday (8/7/2025).

Trade missions serve as a strategic instrument for matching the potential and needs of different regions, expanding business networks, strengthening national supply chains and building mutually beneficial economic cooperation.

“This trade mission is not merely a forum bringing sellers and buyers together. More than that, it is an effort to match the potential and needs of both regions, expand business networks, strengthen inter-regional supply chains, and build mutually beneficial economic cooperation,” she said.

According to Khofifah, each region has strengths, needs and potential that complement one another. Therefore, inter-regional trade is one of the important foundations for strengthening national economic integration.

“We want to connect regions that possess commodities with regions that need supplies, shorten distribution chains, expand markets for flagship products, and at the same time strengthen the use of domestic products. This is the essence of the Trade Mission we continue to build,” she affirmed.

The committed transaction value of Rp 1,066,031,400,000 comprised East Java sales of Rp 704,881,400,000 and purchases from Riau Province of Rp 361,150,000,000.

East Java’s flagship commodities on offer included processed poultry and beef, milk, poultry meat, goat/mutton, day-old chicks, cigarettes, rice, chillies, shallots, garlic, fish feed, shrimp feed, shrimp fry, fertiliser, Madura cattle breeding stock, green bean coffee, dory fillets, steel raw materials, sambal, cooking spices, various seafood, vacuum frying machines, canned sardines, palm sugar and loose-leaf tea.

In return, East Java obtained various strategic commodities from Riau Province, including vaname shrimp, coconut shell charcoal, crested coconuts, pulp and dried sea cucumber fins.

Khofifah said this trading pattern demonstrates the mutually complementary economic relationship between the two provinces. East Java supplies various food commodities and industrial products, whilst Riau supplies a number of strategic raw materials needed by East Java’s industries.

“East Java’s pulp demand is very high. Nearly 99 per cent of East Java’s pulp needs are supplied by Riau Province. That is why, in terms of trade, we still run a deficit with Riau. However, this situation actually shows the strength of the economic ties between the two provinces, as well as the enormous opportunity to continue expanding two-way trade in a more balanced manner,” she explained.

Furthermore, Khofifah stated that the ten largest transactions in the East Java-Riau Trade Mission came from various strategic sectors. The largest transaction was conducted by PT Kharim Mandiri Indonesia of Kediri City with PT Unggas Riau Perkasa of Kampar Regency, worth Rp 202.196 billion per year, covering sales of processed poultry, processed beef, milk, poultry meat, day-old chicks and mutton.

Next, PT Ayo Tani of Kediri Regency conducted a deal with PT Riau Multi Trade of Pekanbaru worth Rp 108.5 billion per year for rice, shallots, chillies, palm sugar and loose-leaf tea. PT Ayo Tani of Kediri Regency also traded with PT Riau Pangan Bertuah of Pekanbaru with a transaction value of Rp 101.4 billion. This was followed by the Dian Mulyo cigarette factory of Trenggalek Regency with Kholis Romli of Sukamara, worth Rp 79.2 billion per year in cigarette sales.

Other major transactions were conducted by PT Suri Tani Pemuka of Sidoarjo Regency with PT Anagi Mandiri Sejahtera of Kampar Regency, worth Rp 71.11 billion per year in fish feed, shrimp feed and shrimp fry. Then CV Satriya Abdi Buana of Surabaya purchased 1,200 tonnes of crested coconuts from PT Korindo Komplit Karbon of Pekanbaru, worth Rp 43.2 billion per year.

In addition, CV Riki Utama Mandiri/RUM Seafood conducted a two-way transaction with the Generasi Mandiri Production Cooperative in Bengkalis, involving sales of dory fillets and purchases of vaname shrimp worth Rp 32.825 billion per year. CV Sinar Jaya Sae of Gresik Regency sold dolomite and NPK fertiliser to the Al-Amin Islamic boarding school cooperative in Pekanbaru, worth Rp 24.27 billion per year.

Furthermore, CV Satrya Abdi Buana purchased coconut shell charcoal from PT Salju Coco Mandiri of Tembilahan worth Rp 24 billion, and CV Jawara Ternak of Sumenep sold Madura cattle breeding stock to the Pekanbaru abattoir worth Rp 20.8 billion.

“The transactions that took place demonstrate the strengthening economic relationship between East Java and Riau. The business matching forum not only connects market needs with each region’s production potential, but also opens up investment opportunities and long-term business partnerships that are expected to further strengthen the national supply chain,” she affirmed.

On that occasion, Khofifah also outlined East Java’s economic performance, which continues to show a positive trend. In the first quarter of 2026, East Java’s economy grew by 5.96 per cent year-on-year, higher than national economic growth.

East Java is also the second-largest contributor to the economy on Java Island, with a contribution of 25.16 per cent, and contributes 14.40 per cent to the national economy.

East Java’s economic structure is supported by the manufacturing sector at 31.45 per cent, trade at 18.77 per cent and agriculture at 10.51 per cent. In the trade sector, throughout 2025 East Java recorded a trade balance surplus of Rp 210.1 trillion, continuing into the first quarter of 2026 with a surplus of Rp 54.25 trillion.

Based on 2024 Inter-Regional Trade of Indonesia data, East Java’s total inter-regional trade reached Rp 333.83 trillion. Specifically with Riau Province, trade between the two provinces reached Rp 9.43 trillion, comprising East Java’s purchases from Riau of Rp 9.17 trillion and East Java’s sales to Riau of Rp 257.36 billion, meaning East Java’s trade balance with Riau still records a deficit of Rp 8.91 trillion.

“This situation shows the strength of the economic ties between East Java and Riau, as well as the considerable room to expand more diverse and balanced two-way trade. Through this Trade Mission, we want to strengthen trade synergy, open up investment opportunities, and build sustainable business partnerships,” she explained.

Khofifah expressed hope that the results of the Trade Mission would not stop at the signing of transaction commitments, but would truly be realised as sustainable business cooperation.

Beyond the economic aspect, according to Khofifah, the Trade Mission also serves as a space to foster closer ties between regions through cultural exchange and strengthened cross-sector collaboration. Presentations of traditional textiles (wastra) from East Java and Riau Province during the series of events symbolised the close bonds of kinship and a shared commitment to building Indonesia through inter-regional collaboration.

“This is our way of weaving Indonesia together, our way of stitching the archipelago, so that no one is left behind. We want to advance together, grow together, develop together, and prosper together,” she said.

She added that the synergy between the two provinces is expected to continue developing not only in trade and investment, but also to be expanded into education, agriculture, livestock, investment and tourism, so that the productivity of both regions can continue to increase.

Cumulatively, over the 2019-2026 period, the East Java Provincial Government has conducted 52 domestic trade missions with total committed transactions reaching Rp 40.21 trillion from 2,250 transactions involving 2,602 businesses.

“This success proves that East Java’s flagship products are highly competitive, both in domestic and global markets. This collaborative spirit must continue to be strengthened together,” she said.

As a means of reinforcing sustainable synergy, the East Java-Riau Trade and Investment Mission was also marked by the signing of several Cooperation Agreements (PKS) between regional apparatus and business organisations from both provinces.

In closing, Khofifah expressed her appreciation to the Riau Provincial Government and all stakeholders who supported the organisation of the East Java-Riau Trade Mission.

“On behalf of the East Java Provincial Government, we extend our gratitude to the officials of the Riau Provincial Government, all business players, Kadin, HIPMI, IWAPI, Bank Indonesia, OJK, BPS, regionally owned enterprises, and all parties who worked in synergy to make this trade mission a success. We hope this collaboration will continue to develop, not only in the economic and trade sectors, but also in various other development sectors, so as to further strengthen the partnership between East Java and Riau,” she concluded.

Meanwhile, Riau Provincial Secretary Syahrial Abdi said the East Java-Riau Trade Mission is a strategic moment for strengthening inter-regional synergy and collaboration.

“Through this Trade Mission, we are optimistic that the economic ties between East Java and Riau will grow ever closer, not only through increased trade transaction values, but also through a wider range of commodities, more businesses getting involved, new investment opportunities opening up, and the establishment of sustainable business partnerships, to drive economic growth and improve the welfare of communities in both provinces,” he concluded.

View JSON | Print