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

January 15, 2025

The Marine Affairs and Fisheries Ministry (KKP) is encouraging increased production of export-quality anchovies on Pasaran Island, Bandar Lampung City, Lampung Province to support the fisheries industry and boost the local economy. Marine Affairs and Fisheries Deputy Minister Didit Herdiawan stated in Jakarta on Dec. 29, 2024, that the effort is done by empowering women in the area so they have the ability to create quality anchovy products.

"As one of the best anchovy producers in Indonesia, processed products for export can be an additional source of income for fishing families [in Pasaran Island]," said Didit after meeting Pasaran Island residents.

He added that women's empowerment element of the initiative is done in collaboration with the Women's Empowerment and Child Protection (PPPA) Ministry to improve business capabilities and diversify products based on local wisdom.

"It is very important to improvef women's ability to produce value-added products while increasing household income," Didit said.

He also appealed for the facilities and infrastructure that have been built by the KKP on Pasaran Island, which has been designated as a modern fishing village (Kalamo), to be utilized to increase income and added value.

"Good management can certainly minimize [the impact of when] fish supply is low so [the fishers] do not lose their market," Didit noted

Meanwhile, KKP Marine and Fisheries Products Competitiveness Improvement (PDSPKP) Director-General Budi Sulistiyo explained the results from the monitoring and evaluation of the 21 members of the fisheries cooperative on Pasaran Island. He said that the average production volume of anchovy processing in the area is two to five tons per month, while their monthly revenue reached Rp20-50 million.

The workforce employed by a processing business unit is around 10 to 20 people, which are divided into workers in sorting and cleaning, drying, as well as packaging duties. Currently, the anchovy products' marketing targets are largely the Jakarta and Lampung regions.

"We continue to monitor developments here after it has been inaugurated as a Kalamo. Of course this is part of the state's attention towards coastal communities. We encourage cooperatives to be more innovative in opening up market opportunities, both domestically and abroad," said Budi.

During his work visit to Lampung, Deputy Minister Didit also took the time to visit the Lampung Marine and Fisheries Product Quality Control and Supervision Agency (BPPMHKP). In one of the KKP technical service units (UPT), he gave direction for all KKP units to improve public services and collaborate between work units to provide quick solutions to the local community as part of efforts to accelerate the realization of food self-sufficiency in Indonesia

The Kalamo initiative is part of KKP Minister Wahyu Trenggono's blue economy program, which aims to increase the productivity of fishing communities through the provision of various fisheries infrastructure by the KKP. Apart from Pasaran Island, Kalamo has also been built in Biak Island, Biak Numfor Regency, Papua Province.

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