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

Fuad Amin (Foto dok industry.co.id)

Minggu, 22 Juli 2018 - 00:00 WIB

KPK Expects Several Rooms in Sukamiskin Prison

Bandung - The Corruption Eradication Commission (KPK) ransacked a room that allegedly served as the Chief of Correctional Institution (Kalapas) Sukamiskin Wahid Husen on Saturday morning (21/7/2018)

Pgn (Istimewa)

Sabtu, 21 Juli 2018 - 23:30 WIB

PGN Starts Flowing Industrial Gas Shoelaces in Pasuruan

Surabaya - PT Perusahaan Gas Negara (PGN) began to deliver gas to the shoelace industry in Pasuruan regency, East Java, to PT Rajawali Cakra Sakti with a total contract volume of 10,000-15,000…

Blok Migas (Foto Eksplorasi.ID)

Sabtu, 21 Juli 2018 - 23:00 WIB

Bojonegoro Oil Service Rewards World Oil

Bojonegoro - PT Pertamina EP Asset 4 Field Cepu, Central Java, provides compensation for services to traditional oil miners including to PT Bojonegoro Bangun Sarana (BBS) which manages oil wells…

Kebun Kelapa Sawit (Ist)

Sabtu, 21 Juli 2018 - 22:30 WIB

GAPKI Lobby Pertamina To Absorb Palm Oil

Surabaya - The Indonesian Palm Oil Entrepreneurs Association (Gapki) is trying to lobby PT Pertamina through the government to absorb the palm oil harvest which is quite high in 2018, but is…

Inneke Koesherawati, artis (Foto Dok Industry.co.id)

Sabtu, 21 Juli 2018 - 22:00 WIB

KPK Immediately Explains Inneke Koesherawati's Involvement During OTT in Sukamiskin Prison

Jakarta - The Corruption Eradication Commission (KPK) helped secure artist Inneke Koesherawati, wife of convicted corruption case Fahmi Darmawansyah in hand catch operation (OTT) activity at…