Jakarta, East Java Ink Strategic Pact to Bolster National Supply Chain
Reported by Aldi Geri Lumban Tobing | Translated by Nugroho Adibrata
Jakarta’s Agency of Industry, Trade, Cooperatives, and SMEs (PPKUKM) is doubling down on food security and economic stability through a strategic alliance with the East Java Provincial Government.
Our top priority is locking in supply security for the people of Jakarta
The partnership links Indonesia’s two largest economic powerhouses. Jakarta remains the nation's primary driver, accounting for 29.31% of Java’s Gross Regional Domestic Product (GRDP) and 16.62% of the national GDP.
East Java ranks as the second-largest contributor, with its GRDP reaching Rp 3,403.17 trillion in 2025. Officials expect this synergy to have a ripple effect, strengthening economic stability across the entire country.
Tax Incentive Strategy Boosts Jakarta's Economic GrowthJakarta PPKUKM Agency Head, Elisabeth Ratu Rante Allo emphasized that Jakarta relies heavily on East Java’s top-tier commodities to meet the city’s demands.
She described the current trade mission as a boots-on-the-ground effort to trim the supply chain, ensuring consumer prices remain stable. This initiative also serves as a springboard for small and medium-sized enterprises (SMEs) from both provinces to scale up through Government-to-Business (G-to-B) and Business-to-Business (B-to-B) networking.
"Our top priority is locking in supply security for the people of Jakarta," she expressed, Thursday (3/5).
Beyond immediate sales, Ratu emphasized that the government is pushing for deeper cross-sector ties, specifically targeting downstream investment and elevating SME products to meet global standards.
“We are opening the doors wide for East Java partners to help anchor Jakarta’s trade ecosystem,” she stated.
Trade between the two provinces currently clocks in at Rp 89.21 trillion ($5.7 billion). A previous 2021 mission inked Rp 750.44 billion in commitments across 103 deals. She expects the 2026 partnership to maintain this growth trajectory through sustainable cooperation.
This partnership is designed to foster a robust investment climate and boost regional revenues, ultimately driving public welfare through higher-quality products and services," she noted.
The commitment was formalized during a "Trade and Investment Mission" held at the Menara Peninsula Hotel in Jakarta.
Jakarta City Secretary Uus Kuswanto emphasized that the capital—a central hub for national consumption—leans heavily on East Java for staples such as rice, shallots, bird’s eye chilies, and seafood.
"This relationship highlights a hand-in-glove supply chain between East Java’s production capacity and Jakarta’s trade and service sectors," Kuswanto added.
