East Java Business Report
East Java’s economy is really influenced by three main business sectors, namely agricultural, industry and trade, hotel and restaurant sectors. In compliance with sectored contribution, agricultural sector colours the economy. This is due to the fact that the role of these three sectors have been more than 70 %. In the last three years, industry sector activity also plays more important role in economic development, that is, increasing processing industry, trading sector, hotel and restaurant, although their growth rates were still low but have increased East Java economy as a whole.
Important industries and which their role have been striking, among others are shipping industry, cement, metal, petrochemical, electronic, food processing, pharmaceutical, machine tools and agriculture industry. In last five years, industry sector shows the increased average at 6.81%. Apart from that, various type of infrastructures needed like transportation and communication as well as electricity and energy are directed to be developed. The important transportation infrastructures are Suramadu bridge connecting Surabaya City and Madura Island, East Java Province Mega Project, Juanda Airport development, seaport development, telecommunication network, and the accomplishment of the Paithon project on electrical generator.
Geography
The area reaches 46,428.57 km², located at 111º0’-114º4’ East Longitudinal and 7º12’-8º48’ South Latitude. Its government administration consists of 38 Regencies/Cities, namely 29 Regencies and nine Cities are as follows :
Regencies :
Sidoarjo, Mojokerto, Lamongan, Gresik, Bangkalan, Jember, Bondowoso, Situbondo, Malang, Pasuruan, Pacitan, Ponorogo, Madiun, Magetan, Ngawi, Sampang, Pamekasan, Sumenep, Banyuwangi, Lumajang, Probolinggo, Trenggalek, Tulungagung, Blitar, Kediri, Jombang, Nganjuk, Bojonegoro, Tuban.
Cities :
Surabaya, Mojokerto, Malang, Pasuruan, Madiun, Probolinggo, Kediri, Blitar and Batu.
Widest Regency is Banyuwangi (5,782.68 Ha/Km²)
Average temperature between 23°C-37°C
Heaviest rainfall occurs between September - April
Demography
East Java is one province with the big population in Indonesia. In 2001, total population was 34,525,588 people, consisting of 49% male and 51% female.
The greatest number of population is resided in Malang Regency : 2,382,258 people.
From 2000 to 2001, population growth was increased with the rate of 0.69%.
In 2001 workforce was recorded 18,397,997 people.
The Economy
Gross Regional Domestic Product (GRDP)
In year 2001, GRDP in this province totalled Rp. 58.739 millions with the largest contribution came from processing industry sector (26.44%), followed by trade sector, restaurant and hotel (21.32%) and services (11.02%).
In last five years, the contribution from both sectors showed their steady improvement.
Export-Import.
In 2000 the total export value was US$ 5,472 millions, while import value was US$ 4,862 millions. This highest import value is caused by the surging investment activity in this province.
Import commodity, among others are capital goods such as machineries and spare-parts, textile raw material, mineral, transportation infrastructure etc.
Export commodities, among others are coffee, chocolate, tobacco, wood, plywood, textile etc. The increased of export value from 1998-2000 was US$ 4,863,600,000 (1998), US$ 4,250,500,000 (1999) and US$ 5,472,700,000 (2000). Meanwhile, the increased of the import value in 1998-2000 was US$ 3,732,867,150 (1998), US$ 3,653,901,771 (1999) and US$ 4,862,365,509 (2000).
Minimum wage rate.
In 2000 the provincial minimum wage rate by sector was around between the lowest Rp 7,330/day and the highest Rp 11,023/day.
Natural Resources
Agriculture.
Around 36% from national rice consumption is supplied from East Java. This shows that agriculture is an important economic activity. The important agriculture commodity out of paddy, among others is cassava.
There are also many important sugar processing factories here, managed by state-owned companies which contribute around 60% from national sugar production. As a whole, 122 plantation area are managed by government and 226 managed by private, producing important commodities like coffee, clove, chocolate, rubber, kapok, tea and some other commodities. For fishery products, they reached 312,182 tons.
Forestry.
This province is a major producer of the highest quality teakwood. Teak production reaches about 298,473 m³ a year. Meanwhile, non teakwood kind of product is around 406,154 m³ a year. The total forest area is estimated 1,363,203 ha, consisting of production forest (52%), conservation forest (32%), natural forest (11%) and the rest is national park forest. In addition to producing wood, the forests in East Java also produce cajuput oil, turpentine, silk and some other commodities.
Mining.
Around Madura Island and in the northern part of this province are found quite big oil and gas deposits. Recently, several foreign oil companies and domestic companies have operated in these sites. Besides oil and gas, East Java is also known as a rich area of mining materials like phosphate, kaolin, marble and limestone.
Infrastructure
Road
Road transportation network in East Java is one of the integrated network with Surabaya as the centre, with total of road length is about 27,232.27 km, consisting of 1,899.21 km state road, 1,439.18 km provincial road, 21,935.45 km Regency road and 931.45 km Sub District road, 63.07 km toll road. Besides, 964.22 km railways transportation network in this province will continue to be developed. The government of East Java Province is also planning to build Surabaya-Madura bridge crossing Madura strait.
Airport
In this province, there are 4 domestic and international airports, among others are Juanda airport (Domestic and International) as one of international gate in Eastern Indonesia. This airport can be reached within 25 minutes from city centre with 3000 metres of landing length and its width is 60 metres. Pegerungan airport is special airport with its landing length of 915 m and its width is 23 m, Trunojoyo Airport as a general airport with its landing length of 850 m and its width is 23 m, and Abdulrahman Saleh airport (Navy Airport) with its landing length of 1984 m and its width is 40 m. In 2001 the total of incoming domestic passengers were 1,265.932 people and the total of outgoing passengers were 1,244,589 people. The total incoming international passengers were 305,694 people and outgoing passengers were 305,524 people.
Seaport
It has 7 large seaports, of which the largest is named as Tanjung Perak Seaport in Surabaya, can be leaned by a 35.000 s/d 45.000 DWT ship, with its import loading services capacity reachs 18,204,014 tons, while 3,334,878 tons for export loading services. Its pier is 8,575 m, and 1,06,52m2 for container heaping. This pier is the second important seaport after Tanjung Priok, Jakarta.
Telecommunication
In 2001, there were 1,336,740 Telephone Line Units (SST) and they have been connected to the consumers at 1,205,137 SST. Meanwhile, the capacity of cellular telephone network is 475 SST.
Energy and Electricity
Electrical capacity of the power generation in East Java Province, its installed power is 6,803 MVA, consisting of 6,003 MVA from PLTA and 800 MVA from PLTU. From this installed power, the connected power reaches 13,135,046 Mw/Kw.
Fresh Water.
38 Regencies/Cities in East Java have a cleaned water facility done by concerned region water companies. Installed capacity is 16,027.09 litres per second, whilst the used of cleaned water production is 10,338 litres per second. Meanwhile, cleaned water capacity supplied by private companies is 4210 litre/second (outside of PAM capacity)
Industrial Zone
There are several ready Industrial Zones are available, as follows :
- SIER and Berbek Industrial Zone : 332 ha in Surabaya and Sidoarjo.
- PIER Industrial Zone : 500 Ha in Pasuruan
- Gresik Industrial Zone : 135 Ha in Gresik
- Maspion Industrial Zone : 450 in Gresik
- Dharmala RSEA Industrial Zone : 200 Ha in Ngoro Mojokerto
Besides, there are industrial zone located outside industrial zone, 37 in Regencies and Cities in East Java, for industrial location.
Supporting Infrastructure
Bank and Insurance
There are 614 Government Banks, 81 Private Banks and 96 offices/insurance companies.
Hotel.
In year 2001, there were 65 star-hotels with 7,587 rooms and 606 non-stars hotel with 592 rooms
Health Facility.
There are 40 Government Hospitals with 7,920 beds, 64 Private Hospitals with 4,941 beds and 930 Public Clinics.
Education and training.
Government; Various education facilities in this province, starting from Elementary Schools (22,142), Junior High Schools (2,945), Senior High Schools (1,006), Vocational Schools (742), Universities (7) and Polytechnic (4).
Private; 6,928 Elementary Schools, 2,105 Junior High Schools (2,105), 757 Senior High Schools, 64 Universities, 35 Academies, and 4 Polytehnics.
Development Planning
In physical target planning which will be reached in 2001/2002/2003, road infrastructure development has played an important rank. For that reason, it has introduced some programs like construction/road rehabilitation of 203 km, to make the airport in Juanda wider, seaport in Tanjung Perak Surabaya
Suramadu bridge construction which is connecting City of Surabaya and Madura Island is a mega project in East Java.
Water construction planning of 5000 litres/second (Umbulan Cleaned Water) in Pasuruan Regency is also being developed.
Investment Opportunities
Agriculture.
Food crops cultivation like paddy, nuts, seaweed, vegetables cultivation, fruits cultivation, herbal medicine cultivation and art crops cultivation.
Fishery.
Ocean fishing and beach fishing, fish cultivation and pond, shrimp cultivation.
Animal Husbandry
Cultivation and greasing of cows, various types of poultry.
Plantation.
Cashew-nuts and tobacco cultivations.
Forestry.
Various wood and spices cultivations.
Industry.
Food and beverages industry, textile, shoes, leather, dowel, furniture, wood, paper, pharmacy, chemical, non metal mineral, basic mineral and materials from metal.
Mining.
Mining business of limestone, onyx, kalsit, trass, dolomit, pirophilit, quartz sand and marble.
Tourism
Tourism facility business like hotel, restaurant and tourism transportation also recreation places development.
Source: bkpm.go.id
Add comment August 24th, 2006