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

October 15, 2024

The Bengkulu Provincial Government is introducing the investment potential of Indonesia's outermost island in Bengkulu Province, namely Enggano Island in North Bengkulu Regency, to foreign investors.

"The Bengkulu Provincial Government is actively promoting this investment opportunity and building collaboration with various parties, including investors from various countries. This effort aims to open the door to cooperation that can accelerate regional economic growth," Bengkulu Provincial Secretary Isnan Fajri stated in Bengkulu City, Bengkulu on Oct. 11, 2024.

He added that the Bengkulu Provincial Government conveyed the region's investment potential when receiving visits from investors from China, Italy, and Singapore on Oct. 11, 2024.

One of the main focuses in the investment promotion presentation was Enggano Island, which is known for its natural beauty, which encompasses mangrove forests, exotic bird diversity, and marine tourism potential.

The island has also been supported by adequate access through airports and seaports, as well as other important infrastructure, including electricity supply, telecommunications, and clean water that have been functioning well.

With the availability of adequate infrastructure, Enggano Island is quite promising for investment. There is a lot of potential on the island, which is located more than 150 kilometers away from the province in the Indian Ocean.

One of the potential investment avenues is through the tourism sector, since Enggano has great natural beauty both in the ocean and on land. In addition, strong cultural elements and mangrove forests will also add to its tourism attraction.

Another potential avenue for investment for the island is its promising aquaculture sector. Its underwater wealth is also of high investment value.

In addition to Enggano Island, Bengkulu overall has abundant natural resources, including coal, gold, and manganese mines. The potential for energy from geothermal and hydropower is also a significant attraction for investors.

In the meeting with prospective investors, the Bengkulu Provincial Government also explained the potential for a railway construction project connecting Bengkulu and Lubuklinggau City, South Sumatra Province.

The construction of the railway line is part of an infrastructure development plan that will support the logistics and mining sectors in the region.

Bengkulu Province is also known as the third largest coffee producer in Sumatra, with other great potential avenues for investment through the palm oil, rubber, and fisheries sectors, including whiteleg shrimp farming. All these sectors open up broad opportunities for investors to participate in regional economic development.

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