Surabaya Seeking to Strangthen Trade and Service Sectors

Surabaya, E Java (Antara) - The Surabaya city government is seeking to strengthen the trade and service sectors as the engine of the city's economic growth. Surabaya Mayor Tri Rismaharini said on Sunday the city had begun abandoning the industrial sector to boost its economic growth. Many industrial estates in Surabaya had changed from production bases to warehouses. "Many companies have started relocating their plants to buffer cities such as Sidoarjo, Gresik, Mojokerto, Pasuruan and Jombang," she said. To strengthen the trade and service sector, the city government would improve the quality of human resources. "Workers in Surabaya must have adequate skills. They must be certified so their skills will be recognized and they can be employed in different jobs," she said. Economist Rudi Purwono of Airlangga University (Unair) in Surabaya said the trade, hotel and restaurant, transportation and manufacturing sectors had significantly contributed to the city's original income. The three sectors contributed at least Rp1 trillion to the city's tax receipts, he said. The city also had high per capita income at Rp84 million per annum based on the current prices and Rp32 million per annum based on the constant prices, he said. Last year the city's inflation rate was recorded at 7.52 percent. Although the inflation rate was relatively high it remained manageable, he said. The city government had now allocated 25 percent of the city budget which reached Rp7 trillion for capital spending. This meant the city government was committed to improving infrastructures, including the Middle East Ring Road (MERR II-C), he said. (*) Reporting by Abdul Hakim