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

June 30, 2025

Lampung Province Regional Secretary Marindo Kurniawan conducted the groundbreaking of PT Pertamina Geothermal Energy Tbk (PGE)'s Gunung Tiga Exploration Project in Gunung Tiga Village, Ulubelu District, Tanggamus Regency, Lampung on June 26, 2025. The activity is part of the inaugural construction and operation of 55 renewable energy power plants in 15 provinces by President Prabowo Subianto.

Marindo stated that the groundbreaking realizes the Lampung Provincial Government's commitment to support the acceleration of national energy development. This project, he added, is expected to bring many benefits that range from improving the regional economy to strengthening collaboration between stakeholders.

Marindo added that the Gunung Tiga exploration project is also an investment for the future of the next generation, with PGE playing a strategic role through the utilization of geothermal energy - a stable, renewable, and sustainable clean energy source.

"With continued technological development and an increasingly precise exploration approach, I believe that this project will make a significant contribution in three main aspects - namely national energy independence, environmentally sustainable development, and, most importantly, improvement of local communities' welfare," he said.

Marindo said that the geothermal exploration project is a crucial initial step to ensure the long-term availability of reliable energy resources.

"We believe that the success of this project will be a lever for the regional economy, create jobs, and strengthen Lampung's position as a province that is proactive in developing green energy," he said.

PGE Operations Director Ahmad Yani stated that the Ulubelu geothermal power plant (GtPP) currently supplies 220 Megawatts (MW) of power, or 20 percent of Lampung's total electricity need of 1200 MW. He also revealed that the Gunung Tiga Project was designed to increase Lampung's power capacity by 55 MW to realize energy independence in the province, which still depends on power supply from South Sumatra Province.

"With 55 MW, we can supply electricity to 450,000 homes with an average usage of around 90 kWh (kilowatt hour) per month, which is a very large [amount]," said Ahmad Yani.

In the initial stage of the project, PGE will drill for exploration wells in three clusters. In addition, a 7 kilometer road will be built with a total investment value of US$36.6 million.

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