The Governor of Lampung, Rahmat Mirzani Djaument Djausal (Mirza),\nattended the opening of Lampung Begawi x Siger Fest 2026, an initiative\nby the Bank Indonesia Representative Office for Lampung Province, held\nat Lampung City Mall. Mirza expressed his appreciation for the strategic\ncollaboration with Bank Indonesia (BI), which successfully integrates\nideas, innovation, investment, and cross-sectoral collaboration.<\/p>\n
\u201cThe idea behind Siger Fest is to bring together ideas, innovation,\ninvestment, and collaboration. This is extremely important for us,\u201d\nMirza stated in a written statement on Saturday (19\/09\/2026).<\/p>\n
\u201cWe are aware that we have a target to grow by 8% in the future to\nachieve Indonesia Emas 2045,\u201d he added.<\/p>\n
Mirza presented Lampung\u2019s comparative profile as a strategic food\ngranary for Indonesia. Lampung\u2019s paddy production has reached 3.5\nmillion tonnes, with half distributed to supply food needs across\nvarious provinces.<\/p>\n
In addition to a corn surplus that supports the poultry and egg\nindustries in Jakarta and Java, Lampung supplies 7lar 70% of the\nnational tapioca supply, placing Indonesia second globally. The province\nalso exports 60% of the national coffee supply, is the largest pepper\nproducer, and is the second-largest sugar producer.<\/p>\n
However, Mirza revealed that for decades, this abundance of\nagricultural wealth has not been optimally felt by farmers due to the\nvolatility of raw commodity prices.<\/p>\n
A fundamental turning point occurred through commodity protection\ninterventions during the era of President Prabowo Subianto, which\nsuccessfully boosted farmer incomes and accelerated regional economic\ngrowth.<\/p>\n
\u201cFor 15 years, Lampung\u2019s economic growth was always below the\nnational average. In 2026, we ranked second highest in Sumatra,\nfollowing Riau, due to commodity prices,\u201d said Mirza.<\/p>\n
Rural economic vitality is also reflected in banking liquidity, with\nThird-Party Funds (DPK) growing by nearly 7% year-on-year. Looking\nahead, Mirza emphasised that sustainable economic expansion cannot rely\nsolely on trade policy interventions.<\/p>\n
Industrial downstreaming, which currently only covers 30% of total\nlocal commodities, has been set as a top regional priority in line with\nthe mandate of the National Medium-Term Development Plan (RPJMN).<\/p>\n
\u201cToday we are growing because of the President\u2019s policies, which have\nforced prices up. But moving forward, to achieve 8%, we cannot rely on\nregulation alone,\u201d said Mirza.<\/p>\n
\u201cThere must be collaboration, creativity, innovation, and most\nimportantly, in accordance with our RPJMN, we must implement\ndownstreaming. We see that only 30% of our commodities in Lampung have\nbeen downstreamed,\u201d he continued.<\/p>\n
The downstreaming strategy is designed to be adaptive through two\napproaches: rural-scale downstreaming (local poultry feed industries,\npost-harvest handling of coffee and cocoa) and advanced downstreaming\nwithin manufacturing industrial zones.<\/p>\n
This drive for added value runs alongside a surge in agricultural\ntechnology adoption following increased yields, where spending on\nagricultural machinery (alsintan) in Lampung rose by nearly 200% and the\nlogistics truck fleet increased by 50%.<\/p>\n
Potential for acceleration is further supported by the\ndiversification of the renewable energy sector and a leap in the tourism\nsector, which recorded a surge in domestic tourists of up to 60% (from\n17 million travellers in 2024 to 27 million visits in 2025). This is\nbolstered by a superior demographic ratio, where 71% of Lampung\u2019s\npopulation belongs to the productive workforce.<\/p>\n
Concluding his speech, Mirza invited central monetary authorities and\nthe banking sector to oversee deregulation to resolve potential\nbottlenecks in investment licensing.<\/p>\n
\u201cI am certain that one of the foundations of Indonesia\u2019s progress has\nonly one requirement: when the regions become strong. The main\nfoundation for future economic growth is when regional growth is\nstrong,\u201d he asserted.<\/p>\n
\u201cWhen Lampung grows, Lampung advances, the community\u2019s economy\nprospers, our President\u2019s ambitions will be achieved, and Indonesia will\nbe far more prosperous in the future,\u201d he added.<\/p>\n
Meanwhile, the Deputy Governor of Bank Indonesia, Thomas AM\nDjiwandono, appreciated the solid economic growth achievement of Lampung\nProvince, which reached 5.29% in the second quarter of 2026. This\nachievement placed Lampung as the province with the second-highest\neconomic growth on Sumatra Island.<\/p>\n
Thomas explained that the economic growth rate, supported by the\nprocessing industry, trade, and agriculture sectors, is the result of\nthe hard work of regional leaders and all stakeholders.<\/p>\n
Nevertheless, he warned that the main challenge ahead is how this\ngrowth can provide real added value for community welfare through\ndownstreaming and the influx of investment.<\/p>\n
\u201cThe challenge is not just how the economy grows, but how that growth\ngenerates increasingly wider added value for the community. Therefore,\nas the Governor stated, downstreaming and investment are incredibly\nimportant,\u201d said Thomas.<\/p>\n
Thomas explained that in line with the mandate of the Law on the\nDevelopment and Strengthening of the Financial Sector (UU P2SK), BI is\nnow not only focused on monetary stability and inflation but is also\nactively encouraging the growth of the real economic sector.<\/p>\n
At the central level, synergy is being built in an integrated manner\nwith the Ministry of Finance, the Financial Services Authority (OJK),\nand the Indonesia Investment Authority (BPI Danantara), which serves as\nan investment catalyst. BI is also prepared to mobilise its regional\noffices and overseas representatives to attract investor interest to\nLampung\u2019s various flagship potentials.<\/p>\n
Regarding the empowerment of the grassroots economy, Thomas outlined\nthree strategic approaches by BI to support Micro, Small, and Medium\nEnterprises (MSMEs): strengthening business partnerships, increasing\nmanagerial capacity and product quality, and expanding access to\nfinancing. Lampung\u2019s flagship commodities, such as processed bananas,\ncoffee, and traditional textiles (wastra), continue to be promoted to\npenetrate global supply chains.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/boosting-economic-growth-lampung-governor-promotes-commodity-downstreaming-1789826256", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }