Indonesian Political, Business & Finance News

Musrenbang 2026: An Opportunity to Strengthen Lampung's Economy and Development

| Source: TEMPO_ID Translated from Indonesian | Agriculture

Governor of Lampung, Rahmat Mirzani Djausal, has stressed that Lampung’s development must rely on strengthening the agricultural sector as the backbone of the regional economy. He made this statement while opening the Provincial Development Planning Consultation (Musrenbang) for Lampung in 2026, as part of drafting the 2027 Regional Medium-Term Development Plan at Balai Keratun, the Governor’s Office, on Monday, 13 April 2026.

Governor Rahmat stated that the majority of Lampung’s population still depends on the agricultural sector. The province’s agricultural land spans approximately 1.8 million hectares out of the total area, with major commodities such as rice, maize, and cassava dominating production.

“About one-third of Lampung’s GRDP is supported by the agricultural sector, with millions of people relying on it for their livelihoods,” he said. However, he continued, for decades, the agricultural economic system has not been favourable to farmers. Fluctuating commodity prices and long supply chains have resulted in relatively small profits for farmers.

The Governor gave an example: before policy interventions on prices, rice farmers’ incomes ranged from Rp 1.5 million to Rp 1.8 million per month. Similar conditions applied to maize and cassava, which are Lampung’s mainstays. Even cassava farmers previously earned an average of around Rp 1 million per month.

This situation has led to high rural poverty rates and low regional fiscal capacity. Local own-source revenue (PAD) is limited due to dependence on public purchasing power.

The Governor noted that the PAD ratio in several areas is only between 3 and 10 percent of the regional budget. This also affects the quality of public services and infrastructure development. According to the Governor, economic disparities between rural and urban areas are increasingly evident, with most money circulating in urban regions.

To address these issues, the central government through commodity price policies has been deemed to have a significant impact. Prices for paddy and maize are now maintained at more beneficial levels for farmers.

The Governor revealed that the increase in paddy prices to Rp 6,500 per kilogram has boosted rice farmers’ incomes to Rp 3 million to Rp 4 million per month. Additionally, improved fertiliser availability has driven agricultural production increases of around 14 percent.

These positive impacts are evident in rising economic activity in the region, including vehicle sales up by 20 percent in recent months.

The Provincial Government of Lampung is also preparing various derivative programmes to strengthen these national policies. One of them is the liquid organic fertiliser programme at the village level. This programme is targeted to reach all villages by 2027, with the hope of increasing agricultural productivity by 15 percent.

In addition, the government is promoting commodity downstreaming through the provision of drying facilities (dryers) in villages. Lampung requires around 500 units of dryers to reduce raw material distribution and increase value added at the farmer level.

With such facilities, commodities like maize will no longer be sold wet, allowing for significantly higher selling prices. This programme is also expected to reduce logistics costs and infrastructure damage from inefficient distribution.

On the other hand, the regional government is strengthening human resource development through vocational training and mobile training units in villages. This programme aims to create skilled workers capable of processing agricultural products into higher-value goods.

The government is also opening opportunities for overseas employment through the migrant vocational programme, targeting the dispatch of thousands of workers to Japan in the coming years. All these policies are designed to drive regional economic growth to achieve the 8 percent target in line with national development directions.

The Governor stated that improving rural community welfare is the main key to strengthening the regional economy sustainably. Through these various programmes, the government hopes to increase community incomes, reduce poverty, and promote equitable development across all of Lampung.

Meanwhile, the Director General of Regional Development at the Ministry of Home Affairs, Restuardy Daud, emphasised the importance of Musrenbang’s role as a strategic forum in aligning central and regional policies.

Musrenbang, he said, is not just an annual agenda but also a momentum for evaluating development achievements and sharpening policies in the third year of the Regional Medium-Term Development Plan. Restuardy also reminded regional governments to ensure integration of planning and funding to deliver real impacts for the community. According to him, there are eight national priority clusters that must serve as references in drafting the 2027 Regional Medium-Term Development Plan.

Staff Advisor to the Minister of National Development Planning/Bappenas, Kurniawan Ariadi, highlighted the importance of accelerating economic growth amid global challenges. The national economic growth target, he said, is directed to reach 6.3 to 7.5 percent in 2027 as a step towards the 8 percent target in 2029.

In his view, this growth must be of high quality, supported by increased productivity, investment, and industrial strengthening. Kurniawan also stressed the importance of synchronising central and regional planning to address challenges such as food crises, energy, and global changes.

On the legislative side, Chairman of the Lampung Provincial Legislative Council, Ahmad Giri Akbar, stated that there are 483 community proposals compiled as the key thoughts of the DPRD. He appreciated the synergy in planning between the provincial government and regencies/cities but emphasised the need for more intensive discussions to explore regional potential.

Giri also highlighted the importance of completing national strategic projects, particularly related to the Way Sekampung and Margatiga Dams irrigation, which directly impact agricultural productivity. According to him, the irrigation issue

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