Province

Lampung

Overview Economy

Lampung, province of the endangered Sumatran elephants

Lampung, a province situated on the southern tip of Sumatra is a land of diversity and contrasts. Situated along the Sunda Strait, which connects the Java Sea to the Indian Ocean, the province’s geographical position at the crossroads of maritime routes has historically positioned the province as a key trading hub.

This maritime corridor not only facilitates maritime trade but also serves as a critical passage for vessels traveling between the Pacific and Indian Oceans, thereby solidifying Lampung's significance in the regional and global shipping network.

Ranking as the 8th most populous province in Indonesia in 2023 with a population of 9.05 million people, Lampung is home to a diverse range of ethnic groups, with the Lampung, Malay, and Javanese people constituting the largest populations. Each group preserves customs and traditions that have been handed down through the years, adding to the cultural tapestry of the region. Moreover, Lampung practices a variety of religions, including Buddhism, Hinduism, and Christianity.

Lampung is also home to a nature-rich landscape that includes verdant plains, beaches, and thick tropical woods. Landmarks such as Krakatau, Kiluan Bay, and Tanjung Setia contribute to Lampung’s landscape, providing a haven for eco-tourism that offers opportunities such as whale watching, snorkeling, and immersive experiences in nature.

Additionally, the province is committed to biodiversity conservation, as exhibited by the presence of Way Kambas National Park. Recognized as a UNESCO World Heritage site, the park is home to the critically endangered Sumatran elephants.

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Economic opportunities

According to Statistics Indonesia, as of 2023, Lampung’s Gross Regional Domestic Product (GRDP) reached Rp 448 billion, with a GRDP per capita of Rp 48 million.

As a significant producer of pepper, rubber, and coffee, Lampung's economy is mostly dependent on agriculture. Its agricultural products have also performed well at the national level. In 2022 alone, the province’s agricultural products ranked in the top ten nationally, with rice coming in seventh place, corn in third, followed by sugarcane and cassava in second and first place, respectively.

Lampung is also ideally situated, making the province a major entry point for trade and business. The Tanjung Priok port facilitates seamless transportation of goods both within the province and beyond.

As of 2022, the province’s exports were valued at US$5.61 billion, with the main commodities including coffee, tea, animal oil, coal, and other chemical products. These exports were primarily destined for countries such as the US, China, India, South Korea, the Philippines, Japan, Italy, the Netherlands, and various African nations.

Lampung’s economic growth, coupled with its infrastructure development, has facilitated the government’s efforts to foster sustainable tourism and bolster the local economy through improved transportation infrastructure. This development encompasses infrastructure projects like the Trans-Sumatra Highway, connecting the province to the rest of Sumatra.

Moreover, Lampung possesses significant renewable energy resources, particularly geothermal energy, which can be found in 13 locations spread across the six regencies of West Lampung, Tanggamus, South Lampung, Pesawaran, Way Kanan, and Bandar Lampung.

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Latest News

September 4, 2024

Pertamina has continuously collaborated with global strategic partners in developing green energy that is more environmentally friendly to encourage the energy transition. Hence, Pertamina has agreed to establish a synergistic collaboration with Hyundai Motor Asia Pacific HQ to develop a hydrogen ecosystem in Indonesia.

Pertamina strategy, portfolio and business development director Salyadi Dariah Saputra stated that the collaboration to develop a hydrogen ecosystem is part of Pertamina's commitment to accelerate the energy transition while supporting the government's target of achieving net-zero emissions by 2060.

He revealed that Pertamina has mapped sources of hydrogen supply in 17 locations from Sumatra to Papua. Currently, Pertamina is also developing a green hydrogen pilot project in the Ulubelu geothermal area with a production target of 100 kilograms/day.

On the downstream side, Pertamina is also building a pilot project for a hydrogen refueling station (SPBH) on Jl. Daan Mogot, West Jakarta, which will be the first integrated energy refueling station in Indonesia. This SPBH will provide three types of fuel in one refueling station, namely gasoline, natural gas and hydrogen.

"Hydrogen development will be one of our clean energy business portfolios in the future, and has the potential to make Indonesia a major player in the field," Salyadi said.

He added that the development of green hydrogen will be a global trend and could be one of Pertamina's future businesses. The proper development of a hydrogen ecosystem for the transportation sector requires large investments and regulatory support from the government.

"Pertamina welcomes the collaboration with Hyundai Motor Company. This collaboration is expected to encourage decarbonization efforts and the use of clean energy in the transportation sector," Salyadi noted.

Hyundai Motor Asia Pacific HQ president Seong Nam Kim acts as a representative of Hyundai Motor Company for the strengthening of the shared vision between the two companies.

"For more than two decades, Hyundai Motor Company has been dedicated to the development of hydrogen technology. The partnership with Pertamina aims to advance the implementation of hydrogen in the transportation sector in Indonesia. We hope to achieve a sustainable future and contribute to the energy transition in the region together,” he stated.

The agreement between Pertamina and Hyundai Motor Company was realized through a memorandum of understanding (MoU) signed by Salyadi and Hyundai Motor Company’s representative on May 30.

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