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

April 7, 2025

The Bengkulu City Government is targeting for investments to Bengkulu City to reach Rp2 trillion in 2025. Bengkulu City Investment and One-Stop Integrated Services Office (DPMPTSP) Head Irsan Setiawan expressed optimism that the target coyld be met.

"We are confident that this target can be achieved because there are several major projects that are underway and will begin soon. In addition, the investment potential in Bengkulu City continues to increase," said Irsan in Bengkulu Cuty, Bengkulu Province in Mar. 20, 2025.

Irsan explained that the construction of three hotels and the revitalization of Pelindo starting from April 2025 are the main driving factors in the expectation to achieve the investment target.

"These projects will not only attract investors, but will also drive economic growth and open up new jobs," he added.

Despite optimism for 2025, Bengkulu City's investment realization in 2024 was recorded at Rp1.04 trillion, or around 29.7 percent of the Rp3.5 trillion target.

"2024 was indeed marked by the implementation of [simultaneous] general elections and regional elections, which made some investors take a wait-and-see attitude. However, we still managed to achieve investment realization of Rp1.04 trillion," explained Irsan.

He added that although the target was not achieved, investor interest for Bengkulu City remained high.

"Many investors still see great potential in Bengkulu City, especially in the tourism, trade, and infrastructure sectors," he said.

Domestic investmets accounted for Rp730.17 billion, or 70.06 percent, of investment realization to the city in 2024 n, while foreign investments made up Rp311.97 billion or 29.94 percent.

Irsan emphasized that increased investment not only drives economic growth, but also increases locally-generated income (PAD) and creates more employment opportunities for the local community.

"We are committed to continuing to facilitate investors by providing ease of permitting and attractive incentives. Thus, the investment target of Rp2 trillion in 2025 could be achieved, and the benefits can be felt by the people of Bengkulu City," concluded Irsan.

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