"The new driving force we mentioned is downstreaming in the agriculture sector, which is necessary because that sector has a huge contribution to Aceh's economic growth, reaching 30.38 percent," Head of Aceh BI Rony Widjiarto Purubaskoro stated during halal bihalal, the social event after Eid, hosted by Aceh's State-Owned Enterprises Communication Forum in Banda Aceh on Monday.
The event discussed about collaboration by Aceh's State-Owned Enterprises to boost the province's economy.
The province's economic growth rate had yet to surpass the national figure, considering that Aceh has not generated more added value to its agricultural products, Purubaskoro pointed out.
He stated that even in the scope of Sumatra island itself, Aceh is only ranked eighth among 10 provinces in terms of economic growth contribution.
Such records are not quite fitting for Aceh's vast potential of natural resources and strategic location, he pointed out.
By pursuing downstreaming for the province's agricultural products, there would be a significant impact on the economy that will benefit the people, he opined.
Purubaskoro explained that in the first quarter of 2023, Aceh's economic growth was recorded at 4.63 percent yoy, with 1.66 percent of the growth contributed by retail and vehicle repair businesses and 0.92 percent from the agriculture, forestry, and fishery sectors.
Moreover, household consumption also contributed as much as 1.77 percent to the figure, coupled with gross fixed capital formation of 1.49 percent and export of 1.04 percent, he elaborated.
Aceh's regional gross domestic product at current prices was recorded at Rp 54.25 trillion (US$3.7 billion) in the first quarter of 2023, whereas the gross domestic product at constant price was recorded at Rp35 trillion (US$2.4 billion), he highlighted.
In a bid to tap into Aceh's vast economic potential, BI will collaborate with banks to establish a digital payment system and educate people, he stated.
Functional coordinator of regional balance and statistical analysis at Aceh Statistics Indonesia (BPS), Tasdik Ilhamudin, remarked that the agriculture sector serves as one of the highest sources of economic growth after retail and vehicle repair.
"We are confident that through downstreaming, there will be added value that will boost economic growth, which in turn will reduce the poverty rate," he remarked.
Ilhamudin said that his administration would appeal to state-owned enterprises in Aceh to consistently contribute to the province's economy by making use of data to assist in the progress of their company and government towards achieving the targets.
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Translator: M Ifdhal, Mecca Yumna
Editor: Azis Kurmala
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