Central Java-Aceh Provincial Governments Sign Rp1.06 Trillion Economic Cooperation Agreement

The Central Java Provincial Government and the Aceh Provincial Government are committed to strengthening inter-regional collaboration, manifested in cooperation across various sectors, particularly the economy, with a total value of Rp1.06 trillion.

The cooperation agreement was signed by Central Java Governor Ahmad Luthfi and Aceh Governor Muzakir Manaf at the Aceh Governor’s Office in Banda Aceh on Thursday.

“We are carrying out business-to-business (B to B) cooperation starting from regional apparatus organisations (OPD), regional-owned enterprises (BUMD), as well as Hipmi and Kadin. The value is around Rp1.06 trillion. This serves as an initial potential for us to develop in each region,” said Luthfi in a statement received in Semarang on Thursday.

The cooperation agreement is valid for one year following the signing and covers cooperation between regional apparatus organisations (OPD) of Central Java and Aceh provinces worth Rp138.56 billion.

This includes the Food Security Agency, Investment and One-Stop Service Agency (DPMPTSP), Industry and Trade Agency (Disperindag), Labour and Transmigration Agency (Disnakertrans), and Culture, Tourism, and Creative Economy Agency (Disparekraf).

Furthermore, cooperation between regional-owned enterprises (BUMD) of Central Java and Aceh worth Rp696.2 billion, including PT JTAB and PT JPEN with PT Pembangunan Aceh (Pema), as well as Bank Jateng with Bank Syariah Aceh.

Then, cooperation between associations such as Kadin Central Java and Hipmi Central Java with Kadin Aceh and Hipmi Aceh worth Rp230 billion.

Finally, inter-district cooperation, namely Klaten Regency with Gayo Lues for tourism, culture, and industry sectors worth Rp1 billion.

According to him, the inter-provincial cooperation is part of the collaborative government scheme, so that one region can complement another, enabling them to advance and grow together.

In addition, he said, it is also an effort to create new economies in each region.

Aceh Governor Muzakir Manaf stated that Central Java is one of the provinces with a large population.

The cooperation between Aceh and Central Java provinces is expected to boost development in both regions.

“We hope this provides more motivation for us to build Aceh. Later, we will communicate more often regarding trade aspects and state apparatus aspects,” he said.