Surabaya: Indonesia’s Strategic Business and Cultural Hub in East Java

Essential Information About Surabaya

Located on the eastern coast of Java Island, Surabaya is the capital of East Java and stands as Indonesia’s second-largest city after Jakarta. Historically a vital maritime trading hub, the city continues to thrive today as a central pillar for Indonesian commerce, industry, and education.

Surabaya at a Glance

For those looking to understand the city’s scale and profile, here are the key facts and figures:

Category	Details
Official Name	City of Surabaya (Kota Surabaya)
Location	East Java, Indonesia
Population	Approximately 3 million (2023)
Land Area	350.54 km²
Elevation	0 – 20 meters (Coastal city)
Climate	Tropical Savanna (Avg. temperatures: 27°C – 32°C)
Languages	Indonesian (Official), Javanese (Local dialect)
Religions	Islam (~85%), Christianity (~12%), Buddhism, Hinduism, and others
Currency	Indonesian Rupiah (IDR)
Main Industries	Trade, Manufacturing, Shipping, Finance, and Service Sectors

Geography & Climate

Strategic Location

Surabaya is located in northeastern Java, facing the Madura Strait. The city layout is highly functional:

• North: The industrial heart and maritime hub.

• South: The center for modern commerce and high-end residential living.

• Key Asset: Home to Tanjung Perak Port, Indonesia’s critical gateway for international trade.

• Connection: Linked to Madura Island via the iconic Suramadu Bridge.

Tropical Weather Guide

Surabaya follows a Tropical Savanna climate. Expect high temperatures and humidity year-round.

• Dry Season (May – October): Hotter ($28°C–34°C$) but with lower humidity and minimal rain.

• Rainy Season (November – April): Slightly cooler ($26°C–32°C$) with frequent tropical squalls and high humidity.

• Average Rainfall: Approximately 1,600mm annually.

Surabaya stands as a powerful economic engine that perfectly blends industrial scale with a rich cultural soul.

Business and Industrial Characteristics of Surabaya

Surabaya is Indonesia’s second-largest city and a vital economic hub. Key sectors include trade, shipping, manufacturing, finance, and healthcare. Recently, the city has seen significant growth in infrastructure and the IT industry.

1. Surabaya’s Economic Role

As the “Gateway to East Java,” Surabaya serves as a critical logistics link between domestic and international markets.

• Commercial Hub: Headquarters for many major domestic and multinational corporations.

• Bridge to the East: The primary trade link between Java and Eastern Indonesia (Bali, Kalimantan, Sulawesi, Papua).

• Strategic Port: One of the nation’s largest import-export hubs.

• Industrial Concentration: Home to numerous integrated industrial estates.

2. Key Industry Sectors

(1) Trade and Shipping

Surabaya is a premier maritime city and a center for national logistics.

• Port of Tanjung Perak: Indonesia’s second-largest port after Jakarta. It functions as the logistics backbone for East Java and Eastern Indonesia.

• International Trade: High container volume trading with Japan, China, Singapore, and Malaysia.

• Main Exports: Industrial goods (auto parts, textiles), agricultural products (coffee, rubber), seafood, and mineral resources (coal, nickel).

• Key Partners: Japan, South Korea, China, Singapore, and the USA.

(2) Manufacturing

The city is a top-tier industrial center with specialized zones.

• Focus Areas: Automotive and machinery (high Japanese investment), food processing (coffee, seafood), textiles (Batik and apparel), and chemicals/construction materials.

• Leading Companies: PT Semen Indonesia (Cement), PT Wings Group (Consumer Goods), and PT PAL Indonesia (Shipbuilding).

(3) Finance and Services

Surabaya is a crucial financial hub for Indonesia.

• Banking: Major presence of Bank Mandiri, BCA, and BNI.

• Retail Market: Rapidly growing consumer market with massive malls like Pakuwon Mall, Tunjungan Plaza, and Galaxy Mall.

(4) Tourism and Hospitality

Beyond business, Surabaya is a hub for historical and natural tourism.

• Top Spots: Surabaya Zoo, Heroes Monument (Tugu Pahlawan), and Ciputra Waterpark. It is also the main transit point for Mount Bromo.

• Hospitality: High demand for business luxury hotels such as Shangri-La, JW Marriott, and Sheraton.

(5) Education and Healthcare

The city serves as the intellectual and medical center for East Java.

• Institutions: Airlangga University (Medical/Economics) and ITS (Science/Technology).

• Medical Facilities: Dr. Soetomo Hospital (Public) and Siloam Hospitals (Advanced Private Care).

3. Future Outlook and Challenges

Growth Areas

• Smart City Initiatives: Strengthening digital infrastructure.

• IT Expansion: Rise in startups and tech ventures.

• Transport: Development of new urban rail and mass transit plans.

Key Challenges

• Traffic Congestion: A side effect of rapid urbanization.

• Environment: Managing air quality and waste systems.

• Infrastructure Gap: Keeping pace with the fast-growing population.

 

 

History and Culture: The Soul of Surabaya

Surabaya is the heart of East Java. Historically, it is Indonesia’s most vital port city, evolving from the legendary Majapahit era to a modern industrial powerhouse.

1. A Journey Through Time

• Ancient Roots (13th–15th Century): Surabaya served as the primary gateway for the Majapahit Kingdom. It was a global hub for spice and textile trades with China and India.

• The Sultanate Era (16th Century): The city became an independent Sultanate before falling under the Mataram Sultanate in 1625.

• Colonial Period (17th–19th Century): Controlled by the Dutch VOC in 1743. It transformed into a plantation hub for sugar, tobacco, and coffee.

• The Turning Point (1945): After the Japanese occupation, the iconic Battle of Surabaya broke out on Nov 10, 1945. This fierce resistance against Allied forces earned Surabaya the title “City of Heroes” (Kota Pahlawan).

• Modern Growth: Today, Surabaya is a leader in Smart City technology and the center of Indonesia’s eastern economy.

2. A Multicultural Melting Pot

Surabaya is defined by its diverse ethnic harmony:

• Javanese: The majority, upholding traditional values.

• Madurese: Known for their strong entrepreneurial spirit in trade and food.

• Chinese & Arab Communities: Both have shaped the city’s business landscape and Islamic heritage for centuries.

Languages Spoken:

• Indonesian: Official/Business.

• Javanese (Suroboyoan): Daily slang.

• Madurese: Regional dialect.

3. Arts and Traditions

• Iconic Architecture: The Rumah Joglo with its distinct wooden roof.

• Traditional Wear: Unique Surabaya Batik patterns and the Blangkon headgear.

• Performance Arts:

  • Ludruk: Folk theater filled with humor and social satire.

  • Reog: A powerful East Javanese lion-mask dance.

  • Gamelan: The rhythmic soul of Javanese music.

4. Religious Values and Spirit

With 85% of the population being Muslim, the Al-Akbar Mosque stands as a grand spiritual landmark. A core cultural value is “Siri’”, which emphasizes protecting the honor of the family and community.

5. Signature Flavors (Gourmet)

Surabaya’s food is bold, savory, and often spicy:

• Rawon: Beef in a rich, black nut (kluwek) broth.

• Lontong Balap: Rice cakes with bean sprouts and savory sauce.

• Sega Tempe: Spiced fermented soybeans—a local staple.

• Kerupuk Surabaya: Famous crispy fish or shrimp crackers.

 

 

Surabaya Gourmet Guide: What to Eat

Surabaya is a paradise for food lovers. Its culinary scene blends Javanese traditions with bold spices and rich coconut milk. Here are the must-try dishes and where to find them.

1. Iconic Signature Dishes

• Rawon (Black Beef Soup): Surabaya’s most famous dish. The dark broth comes from Kluwek (black nuts), creating a deep, nutty flavor. Served with white rice and salty eggs.

  • Top Picks: Rawon Setan (famous late-night spot), Depot Anda Fitri.

• Soto Ayam Surabaya: A refreshing yellow chicken soup flavored with turmeric. It is typically topped with vermicelli, boiled eggs, and crispy shallots.

  • Top Picks: Soto Ayam Lamongan Cak Har, Soto Ayam Ambengan Pak Sadi.

• Sega Tempe Pecel: A healthy vegetarian favorite. Steamed vegetables and fried tempe (fermented soybeans) are drenched in a savory, spicy peanut sauce.

  • Top Picks: Warung Pecel Bu Kris, Depot Bu Rudi.

• Rujak Cingur: A unique Surabaya “salad.” It mixes vegetables and fruits with Cingur (beef muzzle) in a rich peanut-shrimp paste sauce.

  • Top Picks: Rujak Cingur Delta Plaza, Rujak Cingur Genteng Durasim.

• Nasi Krawu: A Madurese-influenced specialty. It consists of fluffy white rice topped with flavorful shredded beef and spicy sambal.

  • Top Picks: Nasi Krawu Bu Tiban, Nasi Krawu Mbuk Su.

2. Sweets & Refreshing Drinks

• Kue Lapis: A colorful, steamed layer cake made from coconut milk and tapioca flour. It has a delightful chewy texture and vibrant look.

  • Top Picks: Kartika Sari Surabaya.

• Es Degan: The perfect cure for Surabaya’s heat. This is fresh young coconut water served with tender coconut meat, syrup, and ice.

  • Top Picks: Es Degan Pak No.

3. Popular Street Food

• Bakso Surabaya: Savory beef meatballs served in a clear, hot broth. The local version is famous for its springy texture and spicy sambal kick.

  • Top Picks: Bakso Pak Sabar, Bakso Klenger Ratu Sari.

• Sate Ayam Madura: Skewered grilled chicken coated in a thick, sweet peanut sauce. It is a local staple due to the large Madurese community in Surabaya.

  • Top Picks: Sate Ayam Ponorogo Pak Seger.

• Roti Maryam & Martabak: Thick pan-fried flatbreads. You can choose the Sweet version (chocolate/cheese) or the Savory version (spiced meat and eggs).

  • Top Picks: Martabak Har.

 

 

Top Shopping & Retail Destinations in Surabaya

Surabaya is a hub for massive shopping complexes. Whether you seek luxury global brands or local wholesale bargains, these malls offer the best in shopping, dining, and entertainment.

1. Tunjungan Plaza (The Iconic Mega-Mall)

Known as “TP,” this is Surabaya’s most famous landmark, consisting of six interconnected wings (TP1–TP6).

• Key Highlights: A massive selection of international brands (ZARA, H&M, Uniqlo, Gucci), diverse restaurants, and high-end cinemas (XXI).

• Best For: Travelers wanting a “one-stop” experience in the city center.

• Facilities: Cinema, bowling alley, and game centers.

• Location: Jl. Basuki Rahmat No. 8-12, Central Surabaya.

2. Pakuwon Mall (The Modern Luxury Hub)

Located in the upscale West Surabaya district, this modern mall caters to a high-end lifestyle.

• Key Highlights: Home to luxury boutiques (Louis Vuitton, Dior, Chanel) and premium dining options.

• Family Friendly: Features large indoor play areas for children and a massive supermarket.

• Best For: Luxury shoppers and families residing in the Pakuwon City area.

• Location: Jl. Puncak Indah Lontar No. 2, West Surabaya.

3. Galaxy Mall (The Lifestyle Center)

The premier shopping destination in the eastern part of the city.

• Key Highlights: A balanced mix of fashion brands (Adidas, Nike, Mango) and a wide range of restaurants and cafes.

• Tech Hub: Known for its extensive IT and electronics section.

• Best For: Gadget enthusiasts and lifestyle shoppers in East Surabaya.

• Location: Jl. Dharmahusada Indah Timur No. 35, East Surabaya.

4. Grand City Mall (The Convention Hub)

A sophisticated mall integrated with a major Convention Center for exhibitions and concerts.

• Key Highlights: Features high-end boutiques and serves as a venue for international business events.

• Entertainment: Equipped with a cinema and live music venues.

• Best For: Visitors attending business conferences or live events.

• Location: Jl. Gubeng Pojok No. 1, Central Surabaya.

5. Royal Plaza (The Budget-Friendly Choice)

A favorite among locals for its affordable fashion and diverse food court.

• Key Highlights: Anchored by Matahari Department Store and Hypermart.

• Best For: Cheap fashion, affordable mobile accessories, and local street food.

• Access: Very popular with local residents in South Surabaya.

• Location: Jl. Ahmad Yani No. 16-18, South Surabaya.

6. ITC Surabaya (The Gadget Specialist)

The go-to destination for mobile phones, laptops, and technical services.

• Key Highlights: Wholesale prices for the latest gadgets and a large market for used smartphones.

• Services: Numerous specialized shops for device repairs and parts.

• Best For: Buying electronics or getting your tech fixed at a lower price.

• Location: Jl. Gembong No. 20, Central Surabaya.

7. Pasar Turi (The Traditional Wholesale Market)

A legendary wholesale hub where you can find products at true local prices.

• Key Highlights: Vast collections of textiles, household goods, and traditional handicrafts.

• Souvenirs: An excellent place to buy Batik and local gifts in bulk.

• Pro Tip: Bargaining is expected here to get the best price.

• Location: Jl. Pasar Turi No. 1, Central Surabaya.

 

 

 

Recommended Hotels in Surabaya: Top Stays for Every Traveler

Surabaya offers numerous high-quality hotels that provide a comfortable environment for travelers and business professionals. Here is a curated selection of clean, secure, and well-equipped hotels with excellent service.

1. Shangri-La Surabaya (★★★★★)

Top-Rated Luxury with Authentic Japanese Dining

• Overview: One of the most highly-regarded luxury hotels in Surabaya, featuring spacious rooms and elegant interiors. It is popular among Japanese guests and ideal for both business and leisure.

• Facilities: Spa, outdoor pool, and a fully equipped fitness center.

• Key Highlights: * Home to “Nishimura” Japanese restaurant—perfect for those craving authentic flavors.

  • Top-tier security makes it a preferred choice for VIPs and business executives.

  • Excellent accessibility with a reliable airport shuttle service.

• Address: Jl. Mayjen Sungkono No. 120, Surabaya, Jawa Timur 60256.

2. JW Marriott Hotel Surabaya (★★★★★)

Premium Service in the Heart of the Business District

• Overview: Known for its luxurious design and world-class service. It is strategically located in central Surabaya, near major shopping malls and business areas.

• Facilities: Outdoor pool, spa, fitness center, and multiple onsite restaurants.

• Key Highlights:

  • Features the Japanese restaurant “Imari” for added peace of mind for Japanese travelers.

  • Renowned for its high-quality breakfast buffet.

  • English-speaking staff provide attentive and professional service.

• Address: Jl. Embong Malang No. 85-89, Surabaya, Jawa Timur 60261.

3. Hotel Majapahit Surabaya – MGallery (★★★★★)

A Historic Heritage Stay

• Overview: Established in 1923, this historical hotel offers a colonial-era atmosphere with beautiful gardens and classic architecture. It provides a quiet, high-end environment for a relaxing stay.

• Facilities: Well-equipped spa and pool facilities within a serene setting.

• Key Highlights:

  • Perfect location for sightseeing (near Tunjungan Plaza).

  • Combines historic charm with the latest modern amenities.

• Address: Jl. Tunjungan No. 65, Surabaya, Jawa Timur 60275.

4. Four Points by Sheraton Surabaya (★★★★☆)

Ultimate Convenience with Direct Mall Access

• Overview: Located in central Surabaya and directly connected to Tunjungan Plaza, this hotel is perfectly equipped for business travelers.

• Facilities: Fitness center and swimming pool available.

• Key Highlights:

  • Unbeatable convenience for shopping and dining via mall access.

  • A quiet environment providing a high-end experience at a reasonable price.

• Address: Jl. Embong Malang No. 25-31, Surabaya, Jawa Timur 60261.

5. HARRIS Hotel & Conventions Surabaya (★★★★☆)

Stylish, Functional, and Great for Business

• Overview: Features a simple and stylish design. It offers excellent cost-performance and great access to the central business district.

• Facilities: Extensive meeting rooms and convention facilities.

• Key Highlights:

  • Friendly, English-speaking staff.

  • Onsite restaurants offer good quality at reasonable prices.

• Address: Jl. Bangka No. 8-18, Surabaya, Jawa Timur 60281.

6. Best Western Papilio Hotel Surabaya (★★★★☆)

Modern Comfort and Airport Accessibility

• Overview: A modern, clean hotel with excellent access from the airport, making it ideal for transits.

• Facilities: Outdoor pool, spa, and fitness center.

• Key Highlights:

  • Comfortable stays at affordable rates.

  • Diverse breakfast options that cater well to Japanese palates.

  • Smooth transit via their airport shuttle service.

• Address: Jl. Ahmad Yani No. 176-178, Surabaya, Jawa Timur 60235.

7. Swiss-Belinn Manyar Surabaya (★★★☆☆)

Great Cost-Performance for Long Stays

• Overview: A simple, clean, and comfortable hotel in East Surabaya, offering great value for money, especially for long-term guests.

• Facilities: Essential amenities provided in a quiet and calm environment.

• Key Highlights:

  • Affordable rates with high standards of service and friendly staff.

  • Located in a vibrant area with many local restaurants and cafes to explore.

• Address: Jl. Manyar Kertoarjo No. 100, Surabaya, Jawa Timur 60285.

 

 

Best Tourist Destinations in Surabaya

Surabaya offers a diverse array of attractions, including historical landmarks, beautiful natural scenery, and modern urban areas. Here are the most recommended tourist spots to explore:

1. Historical & Cultural Spots

(1) Heroes Monument (Tugu Pahlawan)

An iconic monument symbolizing Surabaya.

• Features: Built to commemorate the Battle of Surabaya on November 10, 1945. It is a place to honor the heroes of the Indonesian Independence War.

• Highlights: A 41-meter tall monument. The onsite Museum Sepuluh Nopember (Independence Museum) displays historical documents and artifacts. The surrounding area is rich with historic buildings.

• Recommended Points: Ideal for learning about the history of Indonesia’s independence movement. Taking photos in front of the monument is a popular activity.

• Address: Jl. Pahlawan, Surabaya.

(2) Hotel Majapahit Surabaya

A legendary luxury hotel in Surabaya.

• Features: A beautiful hotel with colonial architecture founded in 1923. It is a historical site that served as a stage for the Indonesian independence movement.

• Highlights: Stunning colonial-era architecture and gardens. The interior displays historical materials from the Independence War.

• Recommended Points: You can enjoy the atmosphere at the cafe or restaurant even without staying overnight. Conveniently located in central Surabaya.

• Address: Jl. Tunjungan No. 65, Surabaya.

(3) Ampel Mosque (Masjid Ampel)

The oldest mosque in Surabaya.

• Features: One of the oldest mosques in Indonesia, established in the 15th century. It houses the tomb of Sunan Ampel, an Islamic missionary.

• Highlights: A design that fuses Javanese and Arabic architectural styles. The surrounding Arab Quarter offers a deep sense of Middle Eastern culture.

• Recommended Points: Perfect for learning about Islamic culture and Surabaya’s history. Nearby traditional markets offer Arabic cuisine and various goods.

• Address: Jl. Ampel Masjid No. 53, Surabaya.

2. Nature & Beach Spots

(4) Kenjeran Beach (Pantai Kenjeran)

Surabaya’s primary beach resort area.

• Features: The closest beach to the city center and a popular recreational spot for locals. Known for beautiful sunsets, strolling, and picnics.

• Highlights: Scenery of the harbor lined with traditional fishing boats. The nearby Sanggar Agung Temple is also worth a visit.

• Recommended Points: Easily enjoy a beach resort atmosphere. Local seafood dishes are available at nearby stalls.

• Address: Jl. Pantai Kenjeran, Surabaya.

(5) Madura Island (Pulau Madura)

A beautiful island connected by a bridge.

• Features: Accessible via the Suramadu Bridge. It features quiet rural landscapes and beautiful beaches.

• Highlights: The culture of traditional bull racing (Karapan Sapi) and seafood restaurants along the beach.

• Recommended Points: A great place to relax away from the city’s hustle and bustle. Experience local culture and lifestyle.

• Access: Approximately 30 minutes by car via the Suramadu Bridge.

3. Nature & Adventure

(6) Mount Bromo (Gunung Bromo)

An active volcano accessible from Surabaya.

• Features: One of Indonesia’s most famous volcanoes, renowned for its magnificent scenery and sunrises.

• Activities: Watching the sunrise from viewpoints on early morning tours and hiking to the volcanic crater.

• Recommended Points: A breathtaking spot you should visit at least once in a lifetime. Easily accessible by joining a tour.

• Access: Approximately 3 hours by car from Surabaya.

(7) Mangrove Ecotourism Surabaya

An ecotourism spot to connect with nature.

• Features: A natural park where you can explore mangrove forests by boat. Enjoy wildlife and beautiful greenery.

• Activities: Strolling through the mangroves on wooden boardwalks or exploring the forest by small boat.

• Recommended Points: Highly recommended for nature lovers. Conveniently located near the city center.

• Address: Jl. Raya Wonorejo No. 1, Surabaya.

4. Golf Courses in Surabaya

(8) Ciputra Golf Club & Hotel

The largest golf course in Surabaya.

• Features: A vast 27-hole golf course with an attached golf resort hotel.

• Recommended Points: The well-maintained course is enjoyable for both beginners and advanced players. Relatively close to central Surabaya for easy access.

• Address: Jl. Citra Raya Utama, Surabaya.

(9) Graha Family Golf & Country Club

A golf course with excellent access from the city.

• Features: An 18-hole championship course with full clubhouse and restaurant facilities.

• Recommended Points: Located near the city center, allowing for play in a short amount of time. Ideal for business use.

• Address: Jl. Mayjen Yono Suwoyo, Surabaya.

 

Flight Information: Traveling from Japan to Surabaya (SUB)

Currently, there are no direct flights operating from Japan to Surabaya (Juanda International Airport, SUB). Therefore, it is common to use connecting flights via the following routes. (Semarang)

1. Popular Transit Routes

• Via Jakarta: Take a direct flight from Japan (Tokyo Narita International Airport, NRT) to Indonesia’s capital, Jakarta (Soekarno-Hatta International Airport, CGK), and then transfer to a domestic flight to Surabaya. (Semarang)

• Via Denpasar (Bali): Fly directly from Japan to Denpasar, Bali (Ngurah Rai International Airport, DPS), and transfer to a domestic flight to Surabaya. (Semarang)

• Via Singapore: Fly directly from Japan to Singapore Changi International Airport (SIN) and connect to a flight bound for Surabaya. (Semarang)

2. Airlines and Flight Duration

• Operating Airlines: Major carriers providing flights between Japan and Indonesia include All Nippon Airways (ANA), Japan Airlines (JAL), Garuda Indonesia, Singapore Airlines, and Scoot.

• Estimated Flight Time: * Direct flight from Japan to Jakarta: Approximately 7–8 hours.

  • Domestic flight from Jakarta to Surabaya: Approximately 1 hour and 25 minutes.

3. Airfare and Pricing

Ticket prices vary significantly based on the booking period and season.

• Price Reference: For example, a round-trip ticket from Tokyo (Narita) to Surabaya was found starting from ¥42,907 according to a 2025 survey.

4. How to Book

You can search for and book the most suitable flights using online travel booking platforms such as Skyscanner or Expedia.

Important Notes

• Check Specifics Upon Booking: Layover times and flight schedules vary depending on the airline and the specific date of travel. We highly recommend checking the exact details at the time of your reservation.

• External Price Factors: Please be aware that airfares are subject to change due to fluctuations in currency exchange rates and fuel surcharges.

• Verify Latest Information: For the most up-to-date flight schedules and pricing, always refer to the official airline websites or a trusted travel booking platform.

Business and Industrial Challenges in Surabaya

As Indonesia’s second-largest city and the economic heart of East Java, Surabaya thrives in manufacturing, trade, IT, and services. However, rapid growth has brought several challenges that impact the business environment. Below is a detailed analysis of these hurdles:

1. Infrastructure Development Delays

• Transportation Infrastructure: * Traffic Congestion: Chronic congestion on major roads and industrial zones reduces logistics efficiency.

  • Road Gaps: Infrastructure development has not kept pace with the emergence of new industrial estates.

• Port Capacity:

  • Tanjung Perak Port Congestion: As a vital hub for Eastern Indonesia, the port struggles to expand fast enough to meet rising trade volumes.

  • Processing Delays: Increased container volume has led to longer customs and cargo handling times.

• Utilities Supply:

  • Power Stability: High demand in industrial areas occasionally leads to an unstable electricity supply.

  • Water Supply: Ensuring a steady supply of industrial-grade water remains a challenge in suburbs and certain industrial zones.

2. Workforce and Human Resources

• Shortage of Skilled Talent: There is a gap between industry demand and available skills in high-tech fields like IT, engineering, and advanced manufacturing.

• Training Limitations: * SME Constraints: Many small and medium enterprises lack the resources for internal employee training.

  • Slow Digital Literacy: Limited IT skills among the general workforce hinder Corporate Digital Transformation (DX).

3. Economic and Investment Environment

• Investment Barriers: * Complex Permitting: Foreign Direct Investment (FDI) faces intricate regulatory processes and complicated land acquisition.

  • Startup Funding: Limited access to Venture Capital and strict bank lending criteria for local SMEs (UMKM).

• Bureaucratic Issues: * Transparency: Delays in administrative and tax processing remain a bottleneck for growth.

  • Anti-Corruption: While efforts are ongoing, further progress is needed to improve business transparency.

4. Environmental Concerns

• Pollution: Industrial zones face challenges with air and water quality due to insufficient emission regulations.

• Urbanization Issues: * Waste Management: Rapid city growth is outpacing waste processing capacity.

  • Loss of Green Space: Urban expansion has led to a decrease in parks and forests.

5. Delays in Digitalization

• IT Infrastructure: While e-commerce is growing, high-speed internet penetration is inconsistent, particularly in rural areas where cash is still king.

• Slow DX Adoption: Manufacturing and SMEs are lagging in implementing efficient digital inventory management and online marketing.

6. Challenges in the Tourism Industry

• Infrastructure & Access: Public transportation to major spots like Mount Bromo and Madura Island remains inconvenient.

• International Marketing: * Information Gap: There is a lack of English-language signage and tourist information.

  • Global Recognition: While domestic tourism is strong, Surabaya needs better digital promotion to attract more international visitors.

 

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