Three Reasons to Stabilize Your Supply Chain in East Java
East Java is quietly emerging as one of Indonesia’s most reliable supply chain hubs. Here’s why global tenants are moving here.
Supply Chain · Sari Wijaya · 5-minute read
Between 2021 and 2023, for the first time, East Java added more industrial tenants than the Greater Jakarta area (Jabodetabek). Three forces are driving this shift.
First, its proximity to Tanjung Perak—the second-busiest port in Indonesia—combined with the expansion of the toll road network, means that the shipment of goods in East Java is faster than in Bekasi or Karawang on an average day.
Second, the pool of skilled labor from Surabaya, Sidoarjo, and Malang keeps the turnover rate below 4% per year for most tenants—roughly half the average seen in the Greater Jakarta (Jabodetabek) area.
Third, the Halal certification corridor. With the harmonization between BPJPH and HIPS facilities, East Java has now become a natural springboard for Halal exports to the MENA region and ASEAN.