Lampung Economy Grows 5.03 Percent: Central Bank

id Lampung Economy Grows 5.03 Percent: Central Bank

Illustration. (Antara)

Bandar Lampung (Antara Sumbar)- The representative office of Bank Indonesia for the province of Lampung recorded the economy of Lampung grew 5.03 percent year-on-year in the second quarter of 2017.

"The figure is higher than Sumatra's average economic growth of 4.09 percent and Indonesian economic growth of 5.01 percent in the same period," head of the representative office Arief Hartawan said here on Tuesday (Sept 12).

Arief said history shows that Lampung's economy is not the highest in growth among the provinces in Sumatra, adding it has been the third or the fourth highest.

Only in the fourth quarter of 2013, Lampung topped other provinces in Sumatra in economic growth, he said.

Quarter to quarter, however, Lampung recorded the highest growth in the second quarter of 2017 when its economy grew 4.29 percent as against Sumatra's average of only 2.19 quarter to quarter, he noted.

The growth was attributable to growing domestic consumption and investment, he added.

The good performance in the second quarter have greater optimism that the province still has good prospects in economic development, he said.

The optimism is stronger with the development of strategic infrastructure such as the Trans Sumatra toll road, the International Airport of Radin Inten II, expansion of the ferry pier of Merak-Bakauheni, expansion of electricity distribution and plan to build an industrial estate in the region.

Arief said growth was recorded in almost all sector mainly in in the sectors of agriculture, manufacturing and trade although the prices of the regional commodities remained low.

"If fiscal expansion is optimum, the economic growth would be higher," he said.

He said with limited financial strength , short term programs that could be carried out by the regional administration is to attract and encourage private investment by improving investment climate such as by simplifying licensing procedure, and offering business incentives.

In a bid to support and improve investment climate , the representative of the central bank , the provincial and district administrations plan to hold Lampung Investment Forum (FOILA).

Head of the Lampung regional development planning board Taufik Hidayat said Lampung is still among the highest in economic growth in Sumatra.

"In the first half of 2017, Lampung was the fifth in Sumatra the economic growth year-on-year," Taufik said.

The slowdown in the second quarter year-on-year was a result of 6.8 percent contraction in government spending. (*)

Editor: Vicha Faradika

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Editor: Ikhwan Wahyudi