The economic growth of East Java in the second quarter of 2023 reached 5.24% year-on-year, surpassing the national average and securing the second position on Java Island. Head of the OJK Regional 4 in East Java, made this announcement during the Media Update and Knowledge Sharing event held with members of the press in Solo on October 17, 2023. He highlighted that East Java is the second-largest contributor to Java Island's economy, accounting for 25.23% of its economic activity. This contribution plays a significant role in sustaining Indonesia's consistent economic growth above 5% since 2022. On a spatial scale, Java Island contributes 57.27% to Indonesia's Gross Domestic Product (GDP), with a 5.18% year-on-year growth rate, and East Java contributes 1.33% to this growth. The main drivers of economic growth on Java Island in the second quarter of 2023 were the Information and Communication Technology, Trade, and Business Services sectors. Subcomponents like transportation, personal goods and services, communication, recreation, and culture were the primary forces behind boosting Household Consumption. Meanwhile, the Export component contracted due to the decrease in key foreign export commodities, such as animal and vegetable fats, wood and wood products, and organic chemicals. In the second quarter of 2023, the Manufacturing Industry sector contributed the most to East Java's Regional Gross Domestic Product (PDRB) at 30.17%, with a growth rate of 3.99% year-on-year.
Within the manufacturing industry, food and beverage production, transportation equipment manufacturing, leather and leather product manufacturing, and basic metal industries were the primary drivers of category performance. The subcategory of food and beverage manufacturing also experienced increased production due to the Ramadan and school holiday seasons. The Trade sector accounted for 18.75% of East Java's PDRB, with a 6.44% year-on-year growth rate supported by increased motor vehicle sales and improving economic conditions. Additionally, trading activities driven by household needs for festive occasions increased compared to the previous year. Throughout the second quarter of 2023, Indonesia's economic performance was influenced by increased public mobility, religious holidays, collective leave, and adjustments in fuel prices that encouraged higher consumer spending and production activities.
