This history originated from the ideas of Indonesian students who study in Rotterdam, the Netherlands, including Fadjar Notonagoro and Sumitro. They realize that Indonesia does not yet have any economic universities, so students must study abroad. Their vision began the establishment of the Krisnadwipayana Economic College in Surabaya which was founded by Dr. Ong Eng Djie, who was then serving as Minister of Finance of the Republic of Indonesia. Although this tertiary institution must be closed after operating for one and a half years, it has instilled seeds for the development of further economic education.

On January 1, 1954, the Surabaya Economic Higher Education Foundation (PTES) was officially established, which was then confirmed through the Notary Deed of MR.Drs. Liem Hie Hian on July 22, 1954.

This foundation gathered prominent figures from various fields, including government officials, business leaders, and community leaders. The founders of the foundation include Mas Goenadi Widjoasmoro (Head of Surabaya Financial Inspection), Liem Djing Lioe (Oei Tiong Ham Concern agent), Raden Mas Soeparto (Surabaya Resident), and several other important figures.

PTES officially started its academic activity on 15 September 1954, with the opening ceremony held at the Hall of the Faculty of Medicine, Universitas Airlangga. In this early period, lectures were held in several locations, including the Maritime Building (now Tunjungan Plaza), Agrarian Building/BPN, and a loan room at the Faculty of Medicine, Universitas Airlangga. This tertiary institution initially only opened one department, namely the company's economy. In 1957, PTES established important cooperation with the Faculty of Economics, University of Indonesia in Jakarta, which then opened the way for the development of general economic programs.

Thanks to the persistent struggle led by R. Samadikoen, Soewondo, and Wilono, PTES reached an important milestone on September 1, 1961, when he officially joined as the Faculty of Economics, Universitas Airlangga through a Ministerial Decree No.31/1961. The faculty defended the existing program and added the accounting department in 1963, with the support of the University of Indonesia.

This era is marked by significant educational reforms. In 1975, the Faculty introduced its first non -degree program - Corporate Administrative Expert Education (PAAP). A major change occurred in 1979 when the faculty switched from the package system to the semester credit system, which significantly increased the graduation rate. The names of the majors are modernized, with the general economy into the study of development and the company's economy into management. The faculty continues to expand its program, adding a special tax program (1984/1985) and marketing management (1985/1986).

The Faculty underwent its first national accreditation in 1996, with the study of development, management and accounting initially received accreditation B. In 2000, both accounting and development studies succeeded in achieving A accreditation, reflecting the institutional commitment to academic excellence. This period was also marked by significant infrastructure development, including the construction of extension buildings in 1996 and business education centers in 2000-2001. The faculty adopts technological advances by building computer laboratories, internet facilities, and digital resources to support the needs of modern education.