West Sumatra

Economic and infrastructure development

West Sumatra’s economy has recorded positive trends in recent years, with the province’s Gross Regional Domestic Product (GRDP) reaching Rp 174 trillion in 2021, Rp 182 trillion in 2022, and Rp 191 trillion in 2023.

According to Bank Indonesia’s West Sumatra branch, the province could experience an economic development of 4.63 to 5.43 percent in 2024, an increase from 2023’s figures of 4.5 to 5.3 percent. This positive economic climate is attributed to the investment flow of Rp 7.2 trillion in 2023, surpassing the target set by the provincial authorities by 128 percent. Of that number, domestic investments contributed Rp 3.411 trillion, while foreign investments US$67 million (Rp 1 trillion).

Communities in West Sumatra are known for upholding Islamic culture, offering the province an opportunity to develop its Halal tourism industry. The province itself has emerged as a key destination for both domestic and international travelers. The growth in West Sumatra’s Gross Regional Domestic Product (GRDP) had positive trends in the last three years with.

The province relied predominantly on the agriculture, forestry, and fishery sector with a GRDP of 47 percent, followed by trade at 9.8 percent, and transportation and warehousing at 8.8 percent, as of 2023. Regarding agriculture, the province’s main agricultural products include rice, vegetables (carrots, onions, and cabbage), fruits (rambutan, durian, mangosteen, and snake fruit), palm oil, and rubber. Additionally, the province is a source of handcrafted goods, such as woodworking, batik, and traditional weaving, as well as art exhibitions and the digital creative sector. 

To boost West Sumatra’s economic expansion, the national government has constructed the first highway in the province, the Padang-Pekabaru highway, as part of the Trans-Sumatra Toll Road, expected to be completed in mid-2024. West Sumatra is also working on improving transportation facilities through the reactivation of the Naras-Sungai Limau railway, which started in 2024. Additionally, the Pulau Air-Padang railway route, along with the Pauhlima (Padang)-Naras (Pariaman) route, has gained attention from the provincial authorities for more financially effective mass transportation in West Sumatra.

The province’s railroad revitalization project is set to start with the development of the International Minangkabau Airport-Duku railway route and continue with the revitalization of the Pariaman-Bukittinggi route. Following this, the government plans to extend the development of this railroad to Pekanbaru, alongside the Trans-Sumatra Toll Road. In the long term, the central government's infrastructure development projects aim to integrate West Sumatra's economy with the more affluent and larger economy of Riau.