EN.malanginspirasi.com – A Public Discussion themed “Mitigation and Solutions for Socio-Economic Impacts on East Java Due to Geopolitical Tensions Between America-Israel and Iran” was held at Gedung Negara Grahadi in Surabaya on Wednesday afternoon, 25 March 2026. Regent of Malang Drs. H. M. Sanusi, M.M., together with his wife Hj. Anis Zaidah, Chairperson of the TP PKK Malang Regency, attended the event.
The forum, initiated by East Java Governor Khofifah Indar Parawansa, brought together regents and mayors from across the province. It was immediately followed by a Halal Bihalal gathering in celebration of Eid al-Fitr 1447 H.
Governor Khofifah used the occasion as a strategic platform to strengthen synergy between the provincial government and regency/municipal administrations in formulating integrated, adaptive, and responsive policies amid global geopolitical dynamics.
The discussion was moderated by East Java Deputy Governor Emil Elestianto Dardak and featured speakers including Secretary of the Coordinating Ministry for Economic Affairs Susiwijono Moegiarso (via online link), Head of Bank Indonesia’s East Java Representative Office Ibrahim, and Universitas Airlangga Development Economics lecturer Gigih Prihantoro.
Governor Khofifah stressed that geopolitical tensions could disrupt supply chains, cause energy price fluctuations, and exert inflationary pressure — risks that must be addressed collectively.
“We understand that global geopolitical dynamics have the potential to create wide-ranging impacts on the energy, food, and logistics sectors. These are real risks that we must anticipate together,” she said.
She emphasized the need to turn challenges into opportunities by strengthening regional resilience and adaptive capacity.
“Today’s challenge is not merely about surviving, but about making East Java a resilient, adaptive region capable of seizing opportunities amid global dynamics,” she asserted.
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East Java’s Economic Strength
As one of the nation’s key economic engines, East Java contributes 25.29% to Java Island’s economy and 14.40% to the national economy. In 2025, the province’s Gross Regional Domestic Product (GRDP) reached Rp3,403.17 trillion with economic growth of 5.33%, supported by approximately 23.8 million workers.
Investment performance remains strong, accounting for 7.5% of national investment and ranking third nationwide. In Q4 2025, investment grew 31.6% quarter-on-quarter and 11.4% year-on-year. Tanjung Perak Port serves 24 out of 41 sea toll routes and supplies nearly 80% of logistics to 19 provinces in Eastern Indonesia, backed by 7 airports, 37 ports, and 12 toll road sections.
East Java is also the national food granary, recording the highest rice and paddy production, with government rice reserves reaching 825.36 tons — the largest in Indonesia — plus the country’s biggest livestock population.
“Therefore, maintaining food security is no longer an option but a strategic necessity. East Java must not only withstand food crises but also serve as a pillar of national food resilience,” Khofifah stated.
To bolster resilience, the provincial government is developing a comprehensive food ecosystem from upstream to downstream through increased production, land optimization, accelerated subsidized fertilizer distribution, and the Jatim Agro-Hub program.
Price stabilization is carried out via market operations and cheap markets across all 38 regencies and cities, along with optimization of the Regional Government Food Reserve (CPPD).
In the energy sector, supplies of fuel (BBM) and LPG remain safe and stable, including during the 2026 Eid holiday period. The province is accelerating New and Renewable Energy (EBT) development, which has now reached 709.13 MW capacity. Energy efficiency and regional spending are being optimized in line with Presidential Instruction No. 1 of 2025 through Work From Home arrangements, reduced official travel, and virtual meetings.
Support for MSMEs and Vulnerable Groups
Support for MSMEs has been strengthened through credit relaxation and restructuring, while social protection for vulnerable groups is enhanced via PKH Plus, disability assistance, labor BLT, and capital assistance for the poor.
Governor Khofifah urged the public to avoid panic buying, as the government guarantees that subsidized fuel stocks and prices remain under control.
Coordinating Ministry for Economic Affairs Secretary Susiwijono Moegiarso noted that although global dynamics have broad effects, Indonesia’s economy — underpinned by strong domestic consumption — has kept the impact relatively manageable, including in East Java.
He also highlighted longstanding structural distortions and opened dialogue on a more proportional solution for the Tobacco Excise Revenue Sharing Fund (DBHCHT).
The event demonstrates the East Java Provincial Government’s commitment to building synergy and mutual cooperation in facing global uncertainty while reinforcing the region’s economic resilience.
