Medan, hitclubapk3 Indonesia
—
Representative Office
Bank Indonesia
(BI)
North Sumatra
(North Sumatra) estimates that the economy in its region can still grow in the range of 4.9 percent-5.7 percent in 2026, amidst global uncertainty.
“In 2026, we predict that North Sumatra’s economy will grow strongly with forecast growth in the range of 4.9 percent-5.7 percent,” said Deputy Director of the North Sumatra BI Representative Office Abdul Khalim at the 2025 BIG Conference in Medan entitled “Unlocking North Sumatra’s Potential: Collaboration for Economic Growth and Job Creation”, Tuesday (9/12).
Abdul said that growth optimism was supported by several potential programs such as the implementation of the B50 biodiesel program which could support the increase in demand for crude palm oil (
crude palm oil
/CPO).
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“Then the effectiveness of the Asta Cita program starts from Free Nutritious Meals (MBG) to stimulus packages supporting people’s purchasing power as well as a relatively conducive investment climate which can be seen from the increase in investment targets in a number of industrial areas/special economic zones,” he said.
However, the government needs to be aware of the economic slowdown in major trading partner countries such as China and the United States.Likewise with the potential for Trump’s tariff war to continue and global commodity prices which the World Bank Forecast projects will fall by up to 7 percent in 2026.
Khalim said that the agricultural and industrial sectors which have been supporting North Sumatra’s economy need to continue to be encouraged, including the investment sector which is the main instrument for accelerating economic growth.
“We also need to pay attention to other internal factors that are no less important, including improving the skills of the workforce, as well as developing infrastructure that is connected, especially with centers of economic growth, such as industrial areas/economic areas,” explained Khalim.
Strong Economic Performance
The 2025 BIG Conference in Medan entitled “Unlocking North Sumatra’s Potential: Collaboration for Economic Growth and Job Creation” was opened by the Deputy Governor of North Sumatra, Surya.
Surya said that North Sumatra’s economic performance is considered strong with superior potential which is the main strength in facing the crisis, namely the agricultural and plantation sectors, processing industry, and world-class tourism potential.
“The processing industry sector, for example, has proven to be the main support for North Sumatra’s economy in the third quarter of 2025 with a contribution of 18.64 percent. Likewise, from the trade side of North Sumatra, which recorded a surplus of US$5.17 billion for the January-September 2025 period,” he said.
Surya revealed that the North Sumatra Provincial Government has prepared a number of plans to develop new economic zones based on superior regional commodities to ensure equitable economic growth from villages to cities.
“This superior area can be developed through investment. This is the time for us to move together, strengthening the synergy between the government, business world, academics and all elements of society to create a superior, advanced and sustainable North Sumatra,” said Surya.
Industry Collaboration
On the same occasion, Director of PT Kinra Arif Budiman said that Sei Mangkei could be a space for collaboration between large industry, local business actors and sustainable innovation.Since operating in 2015 until the third quarter of 2025, Sei Mangkei has succeeded in realizing investments of up to IDR 25.97 trillion and absorbing 7,856 workers.
“With the right strategy, the Sei Mangkei SEZ will not only be a driving force for the economy, but an icon of regional transformation towards a modern and globally competitive industrial area,” said Arif.
Meanwhile, the North Sumatra Chamber of Commerce and Industry introduced the North Sumatra Industrial Zone (KIS) which is located in Tanjung Kasau, Batubara Regency as a strategic project for the North Sumatra Provincial Government to support industrial downstreaming and equalization of the national economy.
Deputy Chairperson of North Sumatra KADIN Isfan Fachruddin said KIS has an area of 2.54 hectares and is managed directly by the provincial government through regionally owned enterprises (BUMD).
“KIS’s strategic location near global export ports such as Belawan and Kuala Tanjung as well as access to multi-mode transportation will be beneficial for investors in developing their industry,” said Isfan.
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