Lampung considered as location for smart farming pilot project

Representatives of China Poly Group Corporation, one of China's largest state-owned enterprise (SOE), conveyed in a meeting with Lampung Governor Rahmat Mirzani "Mirza" Djausal that Lampung is considered to have great potential to be the location for a smart farming pilot project in Indonesia.

The meeting, which took place at Mahan Agung, official residence of Lampung's governors, was attended by Wang Baoan of Poly Group subsidiary Tainuo (Shandong) Energy Industry Co., Ltd. and Li Zhonyi of Poly Group subsidiary Poly Power Service Co., Ltd., as well as Indonesian Employers Association (Apindo) Lampung Province Chair Ary Mezari Alfian and Firmansyah Y. Alfian from the Alfian Husin Foundation.

The meeting is part of the strategic effort to strengthen cooperation between Lampung with Shandong Province, China, which covers various sectors such as investment, trade, agriculture, ports, digital technology, downstream industries, renewable energy, and tourism.

In the discussion, Wang expressed deep interest in Lampung's agricultural potential. He has even conducted a direct survey over 200-300 hectares (ha) of agricultural land in Tanjung Bintang District, South Lampung Regency, Lampung and assessed that the area has great potential for the development of a pilot project for agriculture based on advanced technology that is targeted to be expanded to reach 10,000 ha.

Wang added that the strategic cooperation is expected to open wider market access to China and position Lampung as a promising agricultural investment center. This project is even said to have the potential to become the forerunner of a new industrial area while strengthening modern infrastructure in Lampung.

“Lampung has great strength, both on land and sea. [Meanwhile,] Agricultural technology in Shandong is capable of producing three harvests a year with high productivity. We want to bring this system to Lampung as a contribution to Indonesia’s food security,” said Wang through a translator on Apr. 28, 2025.

In response, Lampung Governor Mirza welcomed the visit and investment interest. He emphasized that Lampung has many advantages in the agricultural sector, claiming that the province is the best shrimp producer in Indonesia and noted that it is one of the main national suppliers for commodities such as rice, corn, and cassava.

The governor highlighted the current agricultural conditions in Lampung, where around 80 percent of the planting process is still done manually and only 60 percent of the harvest undergoes an optimal drying process.

“This is a great opportunity for modernization. We are very open to synergizing with international investors,” Mirza said.

He also added that optimizing fertilizer application in the last planting season has succeeded in increasing harvest yields by 30 percent, showing the potential for increasing productivity through appropriate technological and input interventions.

Regarding market preferences, Mirza explained that medium-grade rice is quite in demand because its price is competitive with adequate quality, and noted that Lampung is the main supplier of rice to the Jakarta Special Capital Region (DKI).

“If the quality and efficiency continue to improve, Lampung can become a strategic food center, even for exports to neighboring countries such as Singapore,” he explained.

In terms of human resources, the governor stated that Lampung has a strong demographic advantage as the province with the seventh largest population in Indonesia, with 68 percent of the population in productive age.

“This is a great strength to support the agricultural sector and other industries. In addition, Lampung is also one of the safest provinces for investment,” he added.

Apindo Lampung Chair Ary added that the collaboration has both economic impact and strengthens regional diplomacy between Indonesia and China, especially with Shandong Province which he says has similar characteristics with Lampung.

As a follow-up, Apindo, Tainuo (Shandong) Energy Industry, and Poly Power Service are facilitating an official meeting between Lampung's Mirza and Shandong Governor Zhou Naixiang along with business delegations from both provinces. The signing for this strategic cooperation is planned for May 28, 2025.

After the meeting, the Chinese delegation is also scheduled to visit the Wan Abdul Rahman Forest Park as part of an investment plan in the ecotourism sector which includes the construction of telescopes, hotels, and other tourist facilities.

“I am very interested in inviting investors from China to Lampung. The potential is extraordinary, not only in agriculture but also in the development of tourism areas,” concluded Wang.