XPND Surabaya

East Java’s Rising Stars: 5 Industries Foreign Investors Should Not Ignore in 2026

The capital city of Indonesia has been the default entry point for foreign investors in Indonesia, but now the center of its gravity is quietly shifting to East Java. The now rising economic engine of East Java is powered by new highway corridors, deep-sea ports, Industrial Estates and a government support and agenda that actively welcomes foreign Capital. From Surabaya to Gresik and Sidoarjo, the number of logistics are accelerating, factories are rising and supply chains are reshaping. Now the question for foreign investors is no longer whether to enter Indonesia, but where to begin, and how East Java is the answer.

As the opportunity in East Java is not similar, growth is differs in specific sectors due to several reasons. The first one is the infrastructure readiness, then regulary direction and export demand.

To proceed with seamless operations, choosing the right industry means to avoid years of friction.

Below are five industries that are rapidly growing in East Java in 2026 where foreign investors are already securing permits, land, and talent ahead:

1. Manufacturing & Industrial Processing

East Java has become a magnet for factories migration from West Java and East Java. Electronics, Components, Machinery, Automative and Consumer goods are rapidly increase in number, cased by strong labor availability, lower land costs, a various Industrial zones scattered in Sidoarjo, Gresik, Pasuruan and Mojokerto, as well as major port of Tanjung Perak presents.

2. Logistics, Warehousing & Port-Related Services

East Java has become Indonesia’s eastern logistics nerve center, fueled by Tanjung Perak Port, new highway roads, as well as the Industrial corridors.

For foreign investors that interested to enter this sector, they must navigate the custom access, import license, OSS classifications and specific permits tied to port.

3. Food & Beverage Processing

East Java’s proximity to export routes and raw materials is ideal for packaging, food processing, and export-oriented F&B Manufacturing.

Product registration, Halal Certification, BPOM and environmental compliance required to be planned correctly that aligns with the regulation.

4. Renewable Energy & Environmental Solutions

Supported by industrial demand and government policy, green manufacturing, water treatment, solar components and waste management are thriving in East Java.

The sector is rich with opportunity, but also dense with regulatory layers as the advance license, environmental assessments and technical approvals need to be understood.

5. Healthcare & Life Sciences

Private Healthcare services, medical devices, and pharmaceuticals are expanding rapidly across East Java, driven by regional medical hubs and population growth.

This sector combines the need of product registration, distribution permits, professional licensing with sometimes joint ventures with local entities.

Choosing the Right Business from the Start

For foreign investors, not only it is importance to identify the opportunity, but how to enter it correctly. A wrong KBLI, Delayed environmental approval, and missing advance license can delay the environmental approval and freeze an entire operation.

At XPND Indonesia, our Surabaya-based team helps foreign companies translate ambition into structure. From choosing the right industry classification to securing every operational permit, we ensure that your entry into East Java is not only legal, but strategic.

In a region moving this fast, the advantage belongs to those who arrive prepared.