Province

Bengkulu

Overview Economy

Bengkulu, land of Rafflesia Arnoldii

Situated on Sumatra's southwest coast, Bengkulu faces the Indian Ocean and is home to several different ethnic groups, including the Rejang, Serawai, and Pekal people. As of 2023, the province is home to a population of 2.1 million people, with the majority identifying as Muslims according to the 2021 Census.

Bengkulu is rich in natural beauty and landscapes. The Rafflesia Arnoldii flower, which bears the names of two British explorers, Thomas Stanford Raffles, and Dr. Joseph Arnold, is a well-known native of the province. With a bud diameter of one meter, the Rafflesia Arnoldii is one of the world's largest flowers, drawing travelers from all over the world to see its bloom in the tropical forests of Sumatra’s southern region, particularly Bengkulu.

Moreover, the province is home to Bukit Barisan Selatan National Park, a UNESCO World Heritage Site dedicated to protecting the area’s biodiversity. Additionally, Bengkulu is well known for its volcano Mount Kaba, and the popular Panjang Beach, boasting a coastline of 7 km, along with its deep jungles.

As a reminder of the colonial era, Bengkulu occupies a role in Indonesian history. The 18th-century British-built Fort Marlborough stands in the province, reflecting Bengkulu’s involvement in the past spice trade and power battles that took place in the area. Another aspect of Bengkulu's history is the Thomas Parr Monument, which honors a worker for the British East India Company.

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Economic landscape

Agriculture is the main engine of Bengkulu's economy, with key crops including coffee, palm oil, and rubber. The province is also well-known for its gold and coal mining sectors, which add to Indonesia's vast natural resources.

In 2023, the province’s economy generated a Gross Regional Domestic Product (GRDP) of Rp 53 trillion. The agriculture, forestry, and fishery sector led the GRDP with a contribution of Rp 13.9 trillion, followed by the wholesale and retail trade sector, including car and motorcycle repairs, which contributed Rp 8.1 trillion, and the government administration sector with Rp 4.5 trillion.

Notably, investment realization contributes to Bengkulu’s economic landscape. For instance, in the second quarter of 2023, the province saw an investment realization of Rp 4.7 trillion, attributed to investments managed by both large and micro, small, and medium-sized enterprises (MSMEs).

Furthermore, South Korean businesses have shown interest in investing in Bengkulu, particularly in shrimp farming and other potential seafood products due to high domestic demand. Apart from that, South Korean investors are also exploring other ventures in tourism, hotels, golf, and cosmetics. Besides South Korea, foreign investments in Bengkulu also mainly originate from Malaysia, Hong Kong, Japan, China, and Singapore.

To further develop economic centers in Bengkulu province, the central government plans to build a Special Economic Zone around the province’s Baai Island, aimed at bolstering industrial and fishery activities. Additionally, the development of Baai Island is meant to improve the connectivity between Bengkulu and other provinces in Sumatra. This initiative is complemented by the existence of the Fatmawati Soekarno Airport, which has been undergoing efforts to expand and renovate its facilities.

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Latest News

May 19, 2025

The Bengkulu Provincial Government continues to encourage increased investment in its region through various strategic steps, such as through a cooperation offering meeting on May 8, 2025, at the Bengkulu Governor's Office in Bengkulu City, Bengkulu. The meeting was led directly by Bengkulu Deputy Governor Rosjonsyah Mian, who was accompanied by Bengkulu Provincial Government Regional Secretariat Assistant II R.A. Denny.

The meeting discussed opportunities for infrastructure development cooperation through an unsolicited public-private partnership (PPP) scheme between Bengkulu and Globalasia Infrastructure Fund (GIF). The scheme allows the private sector to submit projects without direct requests from the government, as long as said projects are considered feasible and in line with regional development priorities.

In the meeting, Deputy Governor Mian emphasized that the provincial government's main focus at this time is to increase Bengkulu's competitiveness as the economic gateway to Western Indonesia. One of the strategies put forward is the development of the Port of Baai Island as the main node for naval transportation connectivity that has the potential to bring long-term economic benefits.

"The Port of Bengkulu, also known as the Port of Baai Island, has a strategic role as the gateway to Bengkulu Province. It can be the main focal point for trade and logistics activities, especially for hinterland areas such as the South Sumatra [regions of] Lubuk Linggau, Lahat, Muara Bungo, and Sarolangun. A significant multiplier effect will be created for locally-generated revenue (PAD) by making [the Port of] Baai [Island] a distribution center," he explained.

Mian added that infrastructure development through the unsolicited PPP scheme allows private participation in development and accelerates the provision of quality public services. The Bengkulu Provincial Government, according to him, is very open to investments that have a direct impact on local economic growth, job creation, and improvement of local community welfare.

The meeting also became the initial moment for technical exploration between the regional government and investors, with the hope that it will be followed up immediately in the form of a feasibility study and mature project planning.

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