REPUBLIKA.CO.ID, SURABAYA -- As the second largest Indonesian metropolitan city with a positive trend of economic growth, Surabaya is an interested place to invest, an economist said.

"Investment confidence index is highly dependent on the economic growth of a region. As Surabaya has a positive trend of economic growth, the city of heroes is a promising place to invest," Rudi Purwono of Airlangga University (Unair) said in a press conference at the office of the Surabaya city government recently.

A lot of progress achieved in the development of infrastructure facilities has confirmed Surabaya as a service and trade city, he said.

Because of the progress the East Java provincial capital sits atop the list of 100 business cities according to the SWA magazine, he said.

According to SWA, five indicators determine whether a city is investment friendly, namely regional gross domestic product, local original income, supporting facilities, retail business and market and annual investment, he said.

He said there are many sub-indicators to declare an investment friendly city, including the local people's purchasing power, economic structure and inflation rate.

"The factors can not be ruled out because they have a great impact on economic growth," he said.

Rudi who is also a deputy dean of the university's school of economics and business noted that at least three main components have supported the Surabaya economy, namely trade, hotel and restaurant and transportation sectors.

The three sectors have significantly contributed to the local original income. "Admittedly, much of the income has been contributed by the tax sector. But on the other hand, this shows a positive trend of the business world," he said.

"For example, if the city administration receives Rp1 trillion in taxes, then how much is the total turnover of business players in this city?" he said.

He said the city's annual per capita income now stands at Rp84 million based on the current prices and Rp32 million based on the constant prices.

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 Indonesian inflation rate shows an upward trend due to the government's fuel subsidy policy and the rupiah's depreciation against the dollar, he said.

Overall, Surabaya is considered self-reliant and capable of supporting business pillars, he said.

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