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

October 15, 2024

Megastar is officially ready to operate in Bangka Belitung Islands Province after signing a memorandum of understanding (MoU) with the Indonesian Tin Exporters Association (AETI) on Sep. 5, 2024.

The collaboration aims to improve the quality of logistics services and goods transportation in the Bangka Belitung region. The strategic step is not only focused on increasing tin exports, but is also expected to have a positive impact on other leading industrial sectors in Bangka Belitung Islands, such as palm oil, pepper, and rubber.

In the past few weeks, Megastar and AETI have held various meetings to formulate concrete steps in implementing this agreement. With the support of AETI, Megastar has established strategic partnerships with leading logistics companies such as Tantra Karya Sejahtera (TKS), Bhanda Ghara Reksa (BGR), and Pelabuhan Indonesia (Pelindo) to ensure smooth operations.

In the latest survey with Pelindo, Megastar announced plans to operate its fleet at Pangkal Balam Port in Pangkalpinang City and Tanjung Pandan Port in Belitung Regency.

In addition to coordinating with the relevant parties, Megastar has also prepared other supporting facilities such as offices and local workers to support their operational activities in the islands of Bangka and Belitung. This decision was taken to meet the needs of business actors in Belitung who still have limited access.

Megastar owner Steven Ee emphasized his commitment to providing professional and competitive logistics services.

"The presence of Megastar will make it easier for entrepreneurs in Babel, with a new fleet of ships, there is also a direct shipping route [without transit] from Babel to Singapore so as to save shipping duration and logistics costs," he said in a release on Sep. 26, 2024.

Furthermore, with the provision of offices and recruitment of local workers, Megastar has an ambition to become a pioneer in logistics transformation in Bangka Belitung Islands in response to the challenges and needs of the ever-growing market.

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