East Java-Saudi Arabia Trade Talks Yield USD 438 Million

RRI.CO.ID, Surabaya - A high-profile trade and investment mission between East Java and Saudi Arabia has yielded a massive IDR 6.7 trillion USD 438 million) in potential transactions following a business forum in Jeddah, highlighting the expanding economic footprint of Indonesia's second-most populous province in the Middle East.

The cross-border initiative, held on Thursday, September 24, 2026, aimed to deepen bilateral economic integration by matching East Javan exporters with Saudi Arabian buyers across key commercial sectors, including halal consumer goods, industrial supplies, and logistics infrastructure supporting the Hajj and Umrah pilgrimages.

East Java Governor Khofifah Indar Parawansa underscored that the multi-trillion-rupiah agreement reflects vast untapped synergies between the province’s manufacturing ecosystem and the growing demand in the Gulf market.

"From the curation process, repeated online business matching sessions, to one-on-one meetings, the recorded value of potential transactions reached IDR 6.7 trillion," Governor Khofifah stated in an official release received in Surabaya on Friday, September 25, 2026, as quoted by Antara.

Khofifah stressed that following the business matching sessions, both sides must immediately iron out technical details regarding supply capacities, product specifications, and regulatory compliance to ensure smooth execution.

"Hopefully, what has become a mutual commitment can be promptly followed up while remaining mindful of the regulatory dynamics in both countries. With hard work and the spirit to continuously strengthen trade and economic relations between the two nations, God willing, all signed transaction commitments can be realized," she added.

The trade delegation presented a wide range of commodities, spanning wood charcoal briquettes, automotive spare parts, sheet glass, paper products, batteries, industrial chemicals, refined palm oil, livestock feed, dairy, coffee, tea, spices, and processed foods.

Special emphasis was placed on East Java’s traditional textiles and embroidery, which local officials believe hold significant potential to capture high-end fashion markets across Saudi Arabia and the broader Middle Eastern region.

"East Java's traditional textiles and embroidery are of very high quality and possess extraordinary potential. Hopefully, we will gain the opportunity to enter the Saudi Arabian and Middle Eastern markets even more broadly, particularly for embroidery-based fashion products," she noted.

Beyond consumer goods, East Java pitched its industrial infrastructure to support the massive annual logistical demands of Islamic pilgrimages. The province currently boasts 13 industrial estates, two Special Economic Zones (SEZ), one dedicated halal industrial zone, 37 sea ports, seven airports, and 12 toll road corridors.

Furthermore, East Java's halal infrastructure is anchored by the Halal Industrial Park Sidoarjo (HIPS), supported by 15 halal inspection bodies (LPH), 85 halal companion institutions (LP3H), and over 16,000 certified halal process assistants.

"This halal ecosystem is vital because what we are offering is not merely products. We want to build a value chain supported by industrial estates, production processes, certification, human resources, all the way to distribution," Khofifah said.

Official trade data indicates that between January and June 2026, East Java’s exports to Saudi Arabia reached USD 24.28 million, contributing to a regional trade surplus of USD 50.40 million.

The successful Jeddah business forum brought together around 50 major Saudi Arabian enterprises and business leaders, paving the way for sustained trade expansion throughout the remainder of 2026. ***