A delegation of Thai business leaders from various industries including education, food, manufacturing, and agriculture has been impressed by the dynamism and infrastructure developments in East Java, Indonesia.
Despite the positive impressions, there are concerns about the lack of direct flights between Bangkok and Surabaya, the second-largest city in Indonesia, which is dampening investor interest in the region.
East Java boasts a sizable potential market of 120 million people, along with attractive tax incentives and infrastructure projects like the new port. However, Thai investors are deterred by the need for connecting flights, prolonging the journey between Bangkok and Surabaya to up to 9 hours.
In an interview with Thai PBS World, Bobby Soemiarsono, the Acting Provincial Secretary of East Java, expressed intentions to advocate for direct flights between Bangkok and Surabaya, although approvals from the central government would be required.
Soemiarsono highlighted plans to collaborate with airlines to establish direct flights between the two cities, emphasizing the significance of adding Surabaya-Bangkok flights to their priority list.
Between 2010 and 2023, East Java has attracted $66.07 million in foreign direct investment, with Thailand being the 22nd largest FDI source. Singapore ranks at the top with $6.576 billion, according to Indonesia’s Ministry of Investment.
Investment from Thailand into East Java is steadily increasing, prompting the government to offer more incentives to draw further investments.
While Indonesia’s current President Joko Widodo has initiated policies fostering economic growth, investors anticipate regulatory enhancements with the incoming government to streamline business operations.
Thai Ambassador to Indonesia, Prapan Disyatat, anticipates enhanced economic collaboration between Thailand and Indonesia, especially with a new government in Thailand fostering broader engagement.
Thai delegates also expressed interest in investing in Indonesia due to its vast market potential and shared appreciation for Thai cuisine.
Nattaporn Runghajornklin, COO of Narathai Cuisine company, mentioned Indonesian customer requests to open a restaurant in Jakarta or Surabaya, highlighting the strategic importance of Indonesia due to its sizable population and cultural similarities with Thailand.
Further engagement in education opportunities also attracted interest, with Nisanart Dharmageisirattana, Director of The American School of Bangkok Green Valley, proposing curriculum reforms and exchange programs with schools in East Java to enhance learning experiences and cultural understanding.
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