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

October 11, 2024

The local government, national and international investors, as well as investment project owners in Lampung Province held the Lampung Economic and Investment Forum (LEIF) 2024 meeting on Oct. 2, 2024. The event, which was facilitated by the Lampung Investment Forum (FOILA), was held at the Lampung Marriott Resort in Hurun Beach, Pesawaran Regency, Lampung.

Acting Lampung Governor Samsudin, who is also an advisor to FOILA, emphasized the importance of LEIF 2024 as a means of promoting Lampung investment projects to investors from seven countries.

"This forum is highly strategic. [Investment] project owners can offer investment [projects] directly to global investors from Europe, South America, and Asia. The local government is ready to support from the fiscal and non-fiscal side," he said.

Bank Indonesia (BI) Lampung Representative Office Head Junanto Herdiawan stated that BI has encouraged the expansion of investment demand through relations with Foreign Representative Offices in Tokyo, Singapore, London, the United States, and Beijing.

"We have also curated investment projects in Lampung, with intensive assistance until they are ready to be offered through an investment presentation book," he added.

BI Lampung and FOILA produced four projects labeled as Investment Project Ready to Offer (I-PRO) to be promoted at LEIF 2024. The four projects are the Teluk Pandan Tourism Special Economic Zone (SEZ) in Pesawaran Regency, the Floating Power Plant in East Lampung Regency, the Kemiling Agripark in Bandar Lampung City, and the Bakauheni Port City in South Lampung Regency.

Junanto said that LEIF 2024 is the peak of Lampung's investment promotion this year. The one-on-one meeting session which brought together investors and project owners showed the high interest of investors for the projects being offered.

"With this meeting, we are optimistic about the investment prospects in Lampung," he divulged.

Junianto projected that Lampung's economy in 2024 will continue to strengthen, with a controlled inflation rate and sustained financial system stability.

"This is supported by the acceleration of the digitalization of the payment system," he explained.

Meanwhile, Bank Permata Chief Economist Josua Pardede praised Lampung's economic resilience amid global market volatility.

"Lampung is able to survive even though the prices of major export commodities are declining," he said.

Tarika Nirmana Hurun Chief Executive Officer Selphie Bong also shared her success story in investing in the service and tourism sectors in Lampung during LEIF 2024.

"The potential of Lampung Province is like a quality canvas that is ready to become a masterpiece. Collaboration between stakeholders needs to be continuously strengthened for sustainable economic growth," she said.

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