BI Lampung promotes downstream investment to maintain regional economic momentum

Bank Indonesia’s (BI) Lampung representative, Bimo Epyanto, is promoting increased economic capacity through investments in the downstream sector to maintain the momentum of growth in the province.

“Investments are not limited to the physical construction of large factories, but also to strengthening business models from upstream to downstream,” he said in a statement received in Bandar Lampung on Tuesday.

According to him, downstream processing must be able to add value to the region’s flagship products so that the economic benefits remain in Lampung.

“I will give an example of the success of commodities in other regions, such as chillies in Garut, West Java, which are processed into derivative products, as a model that Lampung can emulate,” he said.

He stated that in efforts to attract investors, several important points that must be addressed by the local government, such as the preparation of RDTR (Detailed Spatial Plan) and RTRW (Regional Spatial Plan).

“Both of these are the main keys to providing legal certainty for business actors who want to build processing industries. Of course, balanced commodity trading arrangements are needed so that the raw material needs for local downstream industries remain fulfilled,” he said.

In addition, he continued, strengthening farmers’ capacity through field schools is very important to mitigate the risk of crop failure due to climate change, especially for sensitive horticultural commodities.

“We are confident in Lampung’s economic projection for 2026 and optimistic that economic growth can be maintained,” he said.

However, Bimo reminded that challenges will be greater because the growth base in the previous period was already quite high.

“To achieve higher growth, we need increased capacity through new investments and the creation of new sources of economic growth,” he said.