Surabaya, Tuesday, August 12, 2025 — The East Java Provincial Government, along with the East Java Economic Society, officially opened the 2025 East Java Economic Conference (EJAVEC) on Tuesday (August 12). Themed "Increasing Productivity, Innovation, and Economic Capacity in East Java Amidst Various Global Challenges," the conference brought together academics, researchers, businesspeople, and policymakers to discuss strategic regional economic issues within the context of global competitiveness.
One of the keynote speakers, Prof. Ari Kuncoro, a Professor at the University of Indonesia, emphasized that in the modern context, global economic battles are no longer solely determined by military technology, but by mastery of supply chains and logistics. He argued that a country seeking to become a major power must be able to dominate the global supply chain, not through destructive domination, but through efficiency and negotiation strategies.
Prof. Ari cited the trade relationship between the United States, Singapore, and China, where Singapore plays a strategic bridge. He also highlighted East Java's potential as an alternative location for global industry, for example, if a major company like Tesla seeks a new production base when Vietnam or Thailand faces obstacles.
Furthermore, he explained that East Java still has ample "productivity room," particularly in the food, textile, clothing, footwear, and leather industries. Optimizing logistics infrastructure—such as railways, toll roads, and inter-island connectivity—is considered crucial for East Java to emulate the success of industrial corridors in other countries like Vietnam and China.
Prof. Ari emphasized that process innovation is no less important than product innovation, given the high production costs in some sectors. Indonesian businesses, he said, need to utilize data analysis, anthropology, and cultural understanding of trading partner countries to strengthen their negotiating positions. "For example, Walmart can ask for price reductions of up to 9 percent. Indonesian producers must understand the available bargaining space," he said.
He also warned that mass layoffs can reduce people's purchasing power. Conversely, providing training to workers even when production is temporarily suspended can maintain worker dignity while preparing for economic recovery.
Closing his presentation, Prof. Ari emphasized the importance of storytelling and negotiation skills that combine an understanding of culture, language, and international trends. "Deregulation alone is not enough, but also the ability to open the right conversations with global partners," he concluded.
Prof. Ari's message
Ari aligns with the sustainable development agenda, particularly SDG 8 (Decent Work and Economic Growth), SDG 9 (Industry, Innovation, and Infrastructure), and SDG 17 (Partnership for the Goals). By strengthening productivity, innovation, and global skills, East Java has a significant opportunity to strengthen its competitiveness and become a significant player on the international stage. Author: Sevanya Fildzah Setiawan (E-Radio FEB UNAIR)