Governor of BI Encourages Regional Economic Diversification Sector

By : Aldo Bella Putra | Thursday, July 20 2017 - 08:15 IWST

5166
5166

INDUSTRY.co.id - Jakarta - The Governor of Bank Indonesia Agus Martowardojo wants the provinces to diversify their economies not to rely on a single source so as to maintain the sustainability of economic growth.

"Our economy is good, we need to keep this momentum by diversification, it's our joint task," Agus said in a national meeting with regional leaders at Bank Indonesia headquarters, Jakarta, Wednesday (26/7/2017)

The diversity of economic activity in the region, said Agus, makes the economy not only dependent on global commodity price fluctuations.

He explained that the regional economy, especially outside of Java, is still much dependent on natural resource trading activities that are highly dependent on global commodity prices.

Agus exemplifies the source of economic growth in Riau and Jambi about 57 percent depending on natural resources, also in East Kalimantan and North Kalimantan about 72 percent.

"Provinces in Indonesia outside of Java are still heavily dependent on exports of natural resources, including plantations, mining, and excavations," he said.

Agus said the diversification of economic activities in the region can be done horizontally or vertically. Vertically, for example, for areas that rely on mining, should do the hilirah for added value.

"Dependent on one sector must also diversify horizontally, for example through the development of tourism sector or maritime," he said as quoted by Antara.

Agus explained that from Indonesia's gross domestic product of Rp13 thousand trillion, 59 percent are in Java Island, 22 percent in Sumatera, and below 20 percent are outside Java-Sumatra.

Indonesia's main sources of economic growth are also in Java (5.6 percent) and Sumatra (4.05 percent).

"We see each province is different, we have to discuss how each province has a source of diverse economic growth to be more 'sustainable' (sustainable)," said Agus.

News Comment

Today's Industry

GoFood, the Most Used Online Food Delivery Application. (Photo: Sindonews)

Selasa, 05 Juli 2022 - 11:56 WIB

JAKPAT Research: GoFood, the Most Used Online Food Delivery Application

Although GoFood is not the online food delivery app that gives promo and discount the most, GoFoodstill maintains its market leadership as the most used Online Food Delivery (OFD) application.…

Collaboration and innovation is a common thread of various Business Twenty (B20) forums as an important part of G20 activities in 2022. (Foto: Liputan6.com)

Selasa, 21 Juni 2022 - 17:53 WIB

Inter Sectors Collaboration in Strengthening SMEs, Key for Post-Pandemic Recovery Acceleration

Indonesia owns an important role to support the world’s policy that prioritize various parties collaborations as the key to realize an inclusive world economy, included Small Middle Enterprises…

Collaboration and innovation is a common thread of various Business Twenty (B20) forums as an important part of G20 activities in 2022. (Foto: Liputan6.com)

Senin, 06 Juni 2022 - 21:35 WIB

Collaboration and Innovation, Key to support Inclusive Economy Growth

Collaboration and innovation is a common thread of various Business Twenty (B20) forums. This is an important part of G20 activities in 2022. That matters are also going to become a main key…

NORD-DuoDrive.jpg: The innovative and patented DuoDrive geared motor reaches outstanding system efficiency Image: NORD DRIVESYSTEMS

Selasa, 17 Mei 2022 - 14:00 WIB

NORD DRIVESYSTEMS at LogiMAT in Stuttgart From 31st May to 2nd June 2022 NORD will present innovative drive solutions for intralogistics

The specialist LogiMAT exhibition in Stuttgart offers as comprehensive overview of the intralogistics and process management market. As one of the market leaders for drive technology, NORD presents…

President Jokowi attends the meeting between ASEAN leaders and American entrepreneurs at Intercontinental the Willard Hotel, Washington DC, Thursday (05/12). Photo by: Laily Rachev

Selasa, 17 Mei 2022 - 13:00 WIB

President Jokowi Invites US CEOs to Boost Cooperation with Indonesia

President Joko “Jokowi” Widodo has invited company CEOs in the United States to boost cooperation with ASEAN countries, particularly Indonesia.