Province

Bangka Belitung

Overview Economy

Bangka Belitung, heaven of tin mining and natural tourism

Located off the eastern coast of Sumatra, the archipelagic province of Bangka Belitung comprises several smaller islets along with its two main islands, Bangka and Belitung. Following its formal recognition as a separate province from South Sumatra in 2000, Bangka Belitung became the 31st province of Indonesia.

As of 2023, Bangka Belitung is home to a population of 1.52 million people, marking the province as the least populous in Sumatra island. The communities are comprised of seven big religions, Islam (48.92 percent), Buddhism (24.19 percent), Confucianism (14.59 percent), Christianity (6.08 percent), Catholicism (2.76 percent), Taoism (4.16 percent), and Hinduism (0.08 percent).

Bangka Belitung’s natural landscape is characterized by rainforests, mangrove forests, foliage, and oceans, which are home to a diverse array of marine life, including sea turtles, manta rays, and coral reefs filled with tropical species. One of the province’s most renowned natural features is the granite rock formations that dot the countryside. Additionally, Bangka Belitung boasts beaches such as Tanjung Tinggi Beach in Belitung, renowned for its golden sands and blue waters, and Parai Beach in Bangka, famous for its sunsets.

Beyond its natural splendor, Bangka Belitung is a melting pot of diverse cultures and traditions. The province is home to a blend of Malay, Chinese, and indigenous cultures, which have influenced the region's cuisine, architecture, and way of life. Traditional Malay houses adorned with intricate woodcarvings can be found in the province, along with bustling markets teeming with fresh seafood and spices.

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Economic development

Bangka Belitung’s economy has experienced a positive trend in recent years, with its Gross Regional Domestic Product (GRDP) increasing from Rp 57 trillion in 2022 to Rp 60 trillion in 2023. The processing industry sector contributed the most to the GRDP in 2023 with Rp 12.7 trillion or 21.15 percent, followed by the agriculture sector with Rp 7.4 trillion or 19.49 percent, and the trade sector with Rp 8.6 trillion or 15.69 percent.

Notably, the name "Bangka" in Bangka Belitung is derived from the Sanskrit word Wangka meaning tin, which has historically been the mainstay of the local economy. Tin mining in the province started in the first century during the Palembang Empire, and since then, the province has been a significant contributor to national tin mining output, accounting for around 90 percent. This substantial contribution has made Indonesia the world’s second-largest tin reserve holder, after China, with reserves totaling 800,000 tonnes.

However, the mining sector’s contribution to Bangka Belitung’s GRDP declined by a negative 1.20 percent in 2023, indicating a shift in the province’s economic independence from natural resources to other socioeconomic resources.

Nevertheless, despite this shift, the mining sector remains Bangka Belitung’s most lucrative business opportunity, with Rp 1.9 trillion in investment growth in 2023. This was followed by investments in the metals industry at Rp 1.8 trillion, the food industry at Rp 1.1 trillion, and agriculture at Rp 962 billion. Overall, the province received Rp 9 trillion in investment in 2023, including Rp 1.07 trillion from foreign investors and Rp 7,9 trillion from domestic investors.

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Latest News

February 17, 2025

PT. Green Indonesia Alumina (GIA) will invest to build a smelter at the Suge Industrial Park in Belitung Regency, Bangka Belitung Islands Province within the near future. PT GIA will process bauxite into aluminium with the smelter. The bauxite is planned to be obtained from the island of Kalimantan, while coal to fuel the process will be procured from South Sumatra Province.

Bangka Belitung Islands Province Investment and One-Stop Integrated Licensing Office (DPMPTSP) Head Darlan said the investment from PT GIA is worth Rp28 trillion. He added that the company chose Belitung Island for the construction of the aluminium smelter due to several factors, one of which is its proximity to port access.

"PT GIA has several considerations in [choosing] Suge Belitung. [They include], among others, the land being relatively flat, its status as an industrial area, proximity to Tanjung Batu port by about 5 km, proximity to the Indonesian Archipelago Sea Lane (ALKI)," Darlan explained on Feb. 13, 2025.

Regarding licensing, PT GIA has obtained a permit from the Investment Coordinating Board (BKPM) to operate at the Suge Industrial Park in Badau District, ​​Belitung Regency. In addition, the smelter's presence is expected to create jobs for thousands of workers and to have a significant impact on economic growth in the region.

"Based on information from PT GIA, 5,000 [workers] will be needed during the construction period. It is estimated that [the smelter] would need 3,000 workers by the time it is in operation," Darlan revealed.

The construction of the aluminium smelter is planned to begin by February or March 2025. Darlan hopes that there will be no significant obstacles for the construction, so that the smelter could be completed within the forecasted timeframe.

Previously, Acting Belitung Regent Mikron Antariksa gave his welcome for PT GIA's plan to invest in the Suge Industrial Park at the audience and presentation meeting for PT GIA's investment plan at the Belitung Regent's Office meeting room on Nov. 29, 2024. He added that Belitung Regency will facilitate the investment by supporting its permit issuance process, port access, and handling the environmental factors.

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