Bank Indonesia Highlights Coal and CPO Export Commodities from Bengkulu

Bank Indonesia (BI) has highlighted the performance of two flagship commodities from Bengkulu province, namely coal and crude palm oil (CPO), amid major challenges stemming from global geopolitical pressures. Although recording substantial commodity production figures, Bengkulu is assessed as still heavily dependent on primary markets and lacking in downstream processing.

“Bengkulu is one of the highest contributors to coal production and exports in the Sumatra region. However, reliance on traditional markets such as India, China, and ASEAN countries represents a weakness for the region’s economic stability,” stated Deputy Head of the BI Bengkulu Representative Office, Muhammad Irfan Octama, at the Bengkulu Economic Forum on Thursday, 9 April 2026.

For example, data shows that Bengkulu’s coal production in 2025 was in the range of 10-15 million tonnes. As such, Bengkulu is recorded as a major player in Sumatra after South Sumatra with production of 120 million tonnes and Jambi with 20-30 million tonnes.

However, data from the Ministry of Energy and Mineral Resources indicates that the average coal exports from Bengkulu were only 2.41 million tonnes, or 4.41 percent of total production. “A similar situation also occurs in the palm oil sector. Bengkulu has very adequate production potential but has not yet optimised its export supply chain,” said Irfan.

Throughout 2025, CPO production reached 1.38 million tonnes (5.27 percent of Sumatra’s share). Fresh fruit bunch (FFB) production was 4.49 million tonnes (4 percent of Sumatra’s share), while the planted area was 0.42 million hectares.

Although production volumes reach millions of tonnes, said Irfan, Bengkulu’s CPO export contribution for the January-February 2026 period remains very small compared to neighbouring provinces. Bengkulu ranks at the bottom with a cumulative volume far behind Riau (2.16 million tonnes) and North Sumatra (0.83 million tonnes).

“Bengkulu’s relatively adequate CPO production has not yet been fully matched by export performance,” revealed Irfan. This reflects the vast room for strengthening downstream processing and supply chain integration.

In response to the situation, Bank Indonesia recommends several strategic steps to sustain Bengkulu’s economy. First, improving distribution connectivity and developing local processing industries (downstream processing) to increase product added value.

Second, logistical efficiency through restructuring the logistics sector is necessary to reduce high costs that have long hindered local exporters. Third, strengthening Domestic Market Obligation (DMO) by ensuring a balance between meeting domestic energy needs (PLTU) and annual production targets.

Fourth, market diversification by reducing dependence on India and China and beginning to target non-traditional markets to anticipate geopolitical volatility. “Without accelerating local processing industries, Bengkulu will continue to lose potential added value from its raw commodities,” stated Irfan.

The same sentiment was echoed by an economist from Bengkulu University, Yefriza, who noted that Bengkulu’s economy remains dependent on the primary sector with minimal downstream processing. According to him, Bengkulu’s economic structure has not yet undergone significant structural transformation.

Currently, the agricultural sector still dominates with a contribution of 25-26 percent to the Regional Gross Domestic Product (PDRB). While the dominance of the agricultural sector strengthens regional food security, Yefriza emphasised the importance of downstream processing.

“Investment in Bengkulu is still concentrated in the primary sector. There needs to be an effort for downstream processing based on natural resources so that local goods needs can be met domestically, rather than relying on external supplies,” said Irfan.