The economic performance in the Bank Indonesia (BI) Malang working area is projected to remain stable, with growth expected between 5.1% and 5.9% (YoY) in 2025, mainly driven by household consumption and exports as conditions improve with major trading partners. BI Malang’s Representative Head, Febrina, explained that the economy will face several challenges, including global geopolitical uncertainties and potential increases in energy and raw material prices. Key growth drivers include regional economic growth, rising household consumption, private and government investment in infrastructure and social programs, increased public and private sector operational costs, growing tourism activity, and improved agricultural productivity. However, growth may be hindered by global economic policy changes, rising commodity prices, and potential agricultural sector setbacks due to weather conditions. According to BI Malang's analysis, all districts and cities within its jurisdiction are expected to experience positive growth, though influenced by seasonal factors.
Prof. Candra Fajri Ananda, a professor from Brawijaya University, stated that industries and services are the main drivers of economic growth in the BI Malang area, with higher growth rates observed in cities like Batu, Malang, and Probolinggo. Economic transformation from agriculture to industrial and service sectors (secondary and tertiary) has become a key factor for growth. He noted that Malang’s economy is driven by trade, processing industry, and construction, while agricultural and industrial sectors remain strong in areas like Probolinggo and Pasuruan. Addressing regional development challenges, Prof. Ananda emphasized the need for stronger investment policies and improved infrastructure synergies, particularly in transportation and logistics. He also called for green investment policies and environmental standards to strengthen export opportunities. Additionally, OJK Malang Head Biger Adzana Maghribi noted that the financial services industry in the area is growing positively, with sufficient liquidity and controlled risk profiles, despite global and domestic challenges.
