North Sumatra Government Accelerates Industrial Development to Boost Regional Growth

Medan - North Sumatra Governor Bobby Nasution has affirmed that the provincial government is accelerating industrial and economic zone development as a primary driver of regional growth. He stated that this move is expected to support the national economic growth target, with North Sumatra’s contribution targeted at around 6.7 to 7.1 percent. “To achieve this target, cross-subsidies and increased investment are needed,” Bobby said after receiving the board of directors of PT Danareksa (Persero) and PT Kawasan Industri Medan (Persero) at the Governor’s official residence on Monday. He added that strong collaboration between the central government, state-owned enterprises, and regionally-owned enterprises is necessary to develop business centres, economic hubs, and industrial estates in the region. Data from the North Sumatra Central Statistics Agency recorded that the province’s economy grew by 4.53 percent in 2025, lower than the 5.03 percent achieved in 2024. “We continue to evaluate our regionally-owned enterprises to maximise our resources and assets,” he said. Bobby mentioned that the provincial government is also enhancing professionalism to strengthen collaboration with state-owned enterprises and the central government. The provincial government has prepared land for industrial estate development and is opening cooperation opportunities with various companies. He noted that accelerating investment realisation will have a direct impact on increasing economic activity and job creation in the region. The North Sumatra provincial government is offering a plan to develop a 2,500-hectare North Sumatra Industrial Estate in Tanjung Kasau, Batu Bara Regency, with a minimum investment commitment of IDR 1 trillion. “We sincerely hope that cooperation and development can be realised as soon as possible, so that the community can feel the impact of this development more quickly,” Bobby said. According to Danareksa President Director Ngurah Wirawan, the central government will support spatial planning, while the implementation of development falls under the authority of the regional government. He expressed optimism that the development of industrial and economic zones will be a lever for North Sumatra’s economic growth. “We are ready to cooperate and have prepared several steps to follow up on the provincial government’s offer regarding new industrial development,” he explained, citing examples such as vertical industrial development in urban areas and horizontal development in areas with available land.