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Export To Global Markets Growing, LPEI Enhances Competitiveness Of East Java Exporters

The rapid economic growth and export value of East Java place the province in a strategic position for the national economy. East Java contributes 14.46% to Indonesia's GDP and provides a contribution of 25.07% to the Gross Regional Domestic Product (GRDP) of Java Island.

According to the Central Statistics Agency (BPS), East Java's convincing economic growth reached 4.81% (YoY) in the first quarter of 2024. The export value of East Java in March 2024 increased by 39.10% compared to February 2024, with a total value of USD 2.51 billion.

The strategic value of East Java has prompted the Indonesian Export Financing Agency (LPEI) to hold a meeting for East Java exporters at the "LPEI Export Forum 2024" event in Surabaya on Tuesday (5/6). The forum, with the theme "Exploring the Export Market for East Java's Leading Products," is organized by LPEI in collaboration with the Directorate General of Financing and Risk Management of the Ministry of Finance, East Java Customs, and the East Java Provincial Department of Industry and Trade.

"Currently, East Java has more than 2,500 exporters who market their products to 200 countries, including the United States, Japan, Switzerland, Singapore, and China. This contribution is undoubtedly the result of solid collaboration between ministries, institutions, business actors, and all elements of East Java's export ecosystem," said Anton Herdianto, Chief of Region at LPEI.

The LPEI Export Forum discusses various issues related to exports, with a focus on the future development and prospects of East Java's exports, as well as presentations on government programs and LPEI products to support exporters, including the Special Export Assignment (PKE) programs such as PKE Trade Finance, PKE Industrial Zones, as well as PKE Pharmaceuticals and Medical Devices.

The Head of the East Java Department of Industry and Trade, Dr. Iwan, S.Hut., MM, explained that East Java has extraordinary potential in various sectors, especially agriculture, plantations, and fisheries.Until now, the main export markets for East Java have been China, the United States, and Japan, but there are still many export opportunities in other countries. Therefore, synergy between the government, business actors, and other strategic export partners is needed to make East Java a center for exporting superior commodities abroad."Increasing exports is the key to driving the economy. East Java is the second province with the largest export value in Indonesia after West Java. Exporting superior commodities helps businesses grow, increases regional income, generates foreign exchange for the country, and strengthens East Java's position as one of the pillars of the national economy," added Iwan.

In response to this, Anton Herdianto stated, "LPEI is here to provide support to exporters in the form of financing, guarantees, insurance, and consulting services. Our efforts are proactively aimed at providing the right solutions and meeting the expectations of exporters."In this forum, participants are equipped with various education and information regarding facilities and support from LPEI and the East Java Provincial Government. This includes training and capacity development programs, market access expansion trends and opportunities, as well as access to financing facilities to help exporters increase their business capacity.

Rini Satriani, Market Intelligence & Leads Management Chief Specialist at LPEI, provides insight that the growth of East Java's exports is expected to remain stable until 2025. The decline in exports to traditional countries such as the United States, Japan, and China is compensated by an increase in exports to Southeast Asia and the Middle East.

"Some countries with good economic trends require export products from East Java that they previously bought from other countries. Increasing market access is the key, and business matching can be one of the solutions to increase export transactions from East Java," explained Rini.