Province

North Sumatra

Overview Economy

North Sumatra, a large salad bowl of people

North Sumatra, whose capital is Medan, ranks as the fourth most populous province in Indonesia, following West Java, East Java, and Central Java, with up to 15.1 million residents as of 2022. Rather than being a melting pot, the province is best described as a large bowl of salad, comprised of diverse ethnicities, cultures, and religions.

Ethnically diverse, North Sumatra is home to several indigenous groups. The Malay people reside along the east coast, while the Batak people inhabit the west coast and the central highlands region around Lake Toba. The Batak people are further categorized into six groups based on region, culture, and location: Pakpak, Angkola, and Mandailing on the west coast, and Toba, Simalungun, and Karo in the central highlands. Additionally, North Sumatra is home to the Nias people, who are natives of the Indian Ocean Island of Nias and its surrounding islets.

Residents of Chinese and South Asian descent together constitute a small but significant minority in North Sumatra, along with descendants of historical migrants from Java and migrants from other surrounding regions. These regions include the Minangkabau people of West Sumatra, the Palembang people of South Sumatra, and the Acehnese.

Furthermore, North Sumatra is home to a predominantly Muslim population, constituting over 60 percent of residents, followed by Christians (Protestant and Catholic) and Buddhists. Despite this great diversity, the province maintains generally harmonious inter-ethnic and inter-religious relations. However, at the same time, primordialism plays a role in both society and political life.

Show more

North Sumatra’s economy, leading sectors

North Sumatra is one of the leading economies on the island of Sumatra, experiencing positive economic growth in recent years. For instance, in 2022, the province's economy expanded by 4.73 percent, a significant increase from 2.61 percent in 2021 and a notable recovery from -1.07 percent in 2020.

Several sectors are driving North Sumatra's economic growth: agriculture, trade, and construction.

As one of the country’s plantation centers, North Sumatra relies on key commodities such as palm oil, rubber, coffee, cocoa, and tobacco in its agriculture sector. Palm oil plantations owned by the people of North Sumatra are primarily concentrated in Asahan regency, accounting for over 15 percent of all palm oil plantations in the region, while coffee (robusta and arabica) is produced in the regencies of North Tapanuli, Simalungun, and Dairi.

Trade is also a key sector in North Sumatra’s economy, with the province exporting agricultural products like coffee, tea, and spices, as well as industrial products, specifically animal and vegetable fats and oils. As of 2022, the leading export commodity is vegetable fats and oils, reaching a significant export value of US$4.71 billion. Typically, these commodity exports from the province find their way to the Asian region, particularly China, as well as the United States. In terms of imports, North Sumatra's imports are predominantly raw/auxiliary materials, followed by capital goods and consumer goods.

Furthermore, North Sumatra's economy has increasingly relied on the non-trade sector, dominated by services, notably construction. North Sumatra’s Regional Gross Domestic Product (GRDP) in the construction sector has risen from Rp 64 trillion (US$4 billion) in 2018 to an estimated Rp 70 trillion (US$ 4.4 billion) in 2022. Moreover, the construction sector has become a major contributor to North Sumatra's employment industry.

Show more

Latest News

February 20, 2025

The 13th Medan Hospital Expo, a health industry exhibition with a series of seminars, and the 15th Indonesian Hospital Association (PERSI) North Sumatra Hospital Workshop will be held in Medan City, North Sumatra Province.

"Many of the latest health equipment will be on display at the event, which will take place from Feb. 19 to 21, 2025," stated PT Okta Sejahtera Insani Marketing and Finance Director Yudha Imam Sutedja in Medan City on Feb. 12, 2025.

Yudha detailed that the aforementioned equipment include anesthesia equipment, medical beauty, hospital architecture, clinical laboratory equipment and reagents, disposable medical goods, disposable medical goods, dental devices, diagnostic tools, emergency treatment equipment, endoscopy and bronchoscopy devices, ergonomic hospital beds, health information technology systems, industrial kitchen equipment, large-capacity laundry machines, medical gases, medical or hospital training services, orthopedic equipment, surgical instruments, centralized patient monitoring systems, pharmaceutical equipment, physiotherapy equipment, radiology equipment, respiratory aids, sterilization equipment, hospital waste processing, as well as medical clothing.

"This activity is targeted to be visited by 2,500 people, consisting of participants in the seminar and hospital workshops, hospital leaders, owners, and management, as well as the general public," Yudha divulged.

Visitors can visit the exhibitions for freeby registering online via https://tinyurl.com/medanhospex2025.

In the exhibition arena, there are also free health checks for body fat, blood sugar, total bilirubin, total protein, and calcuium as well as  blood donors and blood type checks by Indonesian Red Cross Society (PMI) Medan City.

The public can take advantage of this exhibition to increase their understanding of innovation in the medical world. They can also buy and get direct explanations on how to use personal health devices, such as thermometers, tensiometers, and nebulizers,  from health care companies.

Health care companies could showcase their leading products and services, enhance their image, and meet with various stakeholders including hospitals, doctors, and distributors or suppliers. By interacting directly with visitors, the medical industry players can better understand customer needs to adjust products and services according to market demand.

Read more
February 5, 2025
January 12, 2025
December 7, 2024
November 8, 2024
October 16, 2024
September 27, 2024
September 18, 2024
August 18, 2024
Load more