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Manufacturing, agricultural sectors can spur East Java's growth

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Jakarta Globe - June 21, 2024

Vinnilya, Jakarta – East Java should continue to boost both its manufacturing and agricultural sectors to unlock economic growth, according to its former vice governor Emil Dardak.

Emil, who was number two in power in the provincial government for the 2019-2024 term, said that the manufacturing sector was pivotal to East Java's economy.

"The manufacturing sector is the largest contributor to the province's economy with a share of over 30 percent," Emil told reporters on the sidelines of the Investor Daily Roundtable in Surabaya on Friday.

Emil said special economic zones (SEZs) –particularly those in the manufacturing sector– could drive the province's growth. However, developing such SEZs require commitment, be it from an infrastructure standpoint, manpower, and permits.

While manufacturing could be a major growth driver, it is also best for the East Javan economy to be driven by basic sectors, namely agriculture. Emil revealed that agriculture accounted for 11-12 percent of the province's gross regional domestic product, but the sector absorbed a third of the region's workforce.

"I would say that the farmers' welfare is key to creating socio-economic stability. I doubt investments can run smoothly without socioeconomic stability. That is why we need to pay attention to the people's welfare, particularly those in need," Emil said.

Emil then listed some strategies that could make East Java's agricultural sector more competitive. This includes improving farmers' access to subsidized fertilizers as well as mentoring during harvest season for better yield. But these initiatives need to be well-coordinated, according to Emil.

He added: "We can also try to be more alert to disruptions such as natural disasters. We must quickly address landslides. These are all necessary for the continuity of the economy."

Source: https://jakartaglobe.id/business/manufacturing-agricultural-sectors-can-spur-east-javas-growt

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