Province

Aceh

Overview Economy

Aceh, an Islamic province

Situated on the northern end of Sumatra Island, Aceh province is one of the first regions in Southeast Asia to Islam. It is also recognized as the only region in Indonesia where the criminal justice system enforces Islamic law for both Muslims and non-Muslims.

Aceh is committed to religious conservatism, making it the only Indonesian province implementing Sharia law. This strict adherence traces back to its early embrace of Islam. The enforcement of Sharia Law prompted the Indonesian government to grant Aceh a special autonomous status. However, this special status was, in part, a measure to appease the Free Aceh Movement (GAM), a group involved in a nearly three-decade-long insurgency to achieve independence.

In addition to being granted special autonomy status, Aceh has established its local political party, officially recognized and registered by the Indonesian government. This recognition has allowed them to take part in the 2024 election.

Due to Aceh’s geographical location being bordered by the Indian Ocean to the north and west, and the Strait of Malacca to the east, the province is prone to natural disasters.

In December 2004, the western coastal areas of Aceh, including cities such as Banda Aceh, Calang, and Meulaboh, bore the brunt of the tsunami resulting from the 9.3 magnitude Indian Ocean earthquake. Although figures may differ, the tsunami in Aceh claimed the lives of more than 170,000 individuals, leaving approximately 500,000 people without homes.

The occurrence of the 2004 tsunami in Aceh is viewed as a period of tranquillity for both the Free Aceh Movement (GAM) and the Indonesian government. Subsequently, the conflict was formally concluded through the signing of a peace agreement in Helsinki, Finland.

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Aceh’s economy, leading sectors

According to Statistics Indonesia, Aceh’s Gross Domestic Product (GDP) reached Rp 36.6 trillion as of the third quarter of 2023. Alongside this economic growth, the region is home to a population of 5.4 million people, spanning an area of 56 thousand square kilometers and encompassing a total of 23 regencies and cities.

Previously, Aceh boasted substantial reserves of oil and natural gas, a sector that played a crucial role in propelling the province's economy. By 2023, this significance has waned, marking a shift in the economic landscape. Now, the leading sectors in the province are agriculture, fishery, and transportation.

Furthermore, investment in Aceh holds immense potential, driven by its strategic geographical advantage in the marine and fisheries sector. As of the third quarter (Q3) of 2023, this sector contributed 27 percent to the Gross Regional Domestic Product (GRDP), amounting to Rp 9.87 trillion. With primary commodities such as palm oil and coffee, Aceh’s agricultural sector also beckons investors to explore the 299,701 hectares of available land for business ventures.

Adding to its appeal is Aceh's location bordering the Malacca Strait, a key international waterway linking the Indian Ocean and the Pacific Ocean. The government's substantial investment in upgrading transportation infrastructure for sea, air, and land routes further enhances the region's attractiveness. In Q3 2023, the transportation sector accounted for 7 percent of the GRDP, totaling Rp 2.46 trillion.

Ultimately, Aceh stands as a promising investment destination, leveraging its unique geographical advantages to foster growth in the marine, fisheries, and agricultural sectors. The province's commitment to enhancing transportation infrastructure not only increases its appeal but also creates opportunities for investors.

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Latest News

December 4, 2025

Luthfi, Head of the Communications and Digital Ministry's Class II Radio Frequency Spectrum Monitoring Center in Banda Aceh City, Aceh Province, stated that around 70 percent of the telecommunications infrastructure in Aceh is still in good condition. The total number of telecommunications infrastructure sites in Aceh is 3,414. But the sites that are still in good condition has not yet operated optimally.

"There are several reasons why the telecommunications network in Aceh is not operating optimally, including the electricity supply and damage to transmission lines caused by the floods," he said in Banda Aceh City on Dec. 2, 2025.

Luthfi explained that the impacted telecommunications infrastructure is being monitored directly by the Communications and Digital Ministry's telecommunications monitoring center team 24/7. 

"This information is submitted to management every 12.00 Western Indonesian Time (WIB)," he said.

Luthfi added that the report will change periodically depending on the electricity supply and repairs made by cellular operators.

"Based on information from cellular operators, they are currently working hard and are attempting to reach areas with affected cellular sites," he said.

A Banda Aceh Class II Radio Frequency Spectrum Monitoring Center team is also currently collecting data on cellular network infrastructure sites with generators so they can be operational immediately to facilitate communication access in disaster-affected areas.

"We have also coordinated with the Aceh Regional Secretary and the Aceh Disaster Mitigation Agency (BPBA) regarding fuel for generator operations. Alhamdulillah, Pertamina will assist," he said.

Luthfi added that the Communications and Digital Ministry has also distributed 20 Starlink internet satellites, six of which are for Aceh Tamiang Regency and the rest for other affected regencies.

"We have handed over the Starlinks to the Aceh Government, and they will be distributed to disaster-affected areas to facilitate communication disruptions caused by the disaster," he explained.

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