INVESTMENT PROFILE
West Sumatera is well-known as Minangkabau, one of the 33rd provinces of Indonesia. The provincial capital of west Sumatera is Padang. Much of its highland formed by the Bukit Barisan Mountain range; virgin jungle inhabited by elephants, tigers, leopard and rhinos. Minang people have firey-hot dishes and ancient matriarchal customs. The women own property and the men leave home to seek their fame and fortune. Travelling is considered a mark of success, Padang Restaurants are found in all major towns across the nation. The people are hospitable and eloquent; primarily speak Bahasa Minang with poetic style of speech. West Sumatera days are filled with colourful ceremonies and festivals. Legend has it the Minangkabau are decendants of the youngest son of Alexander the Great, King Maharajo Dirajo. During the early 19th century, the area was disrupted by wars between the followers of the traditional Islam or Padris, and those adhering to the traditional law (Adat) of the Minangkabau.
GEOGRAPHY
West Sumatera is situated between 00°,54” North Latitude and 30°,3” South Latitude, and between 980°,36” and 101°,53” East Longitude with the total area of 42,297.30 km˛ or 2,17% of the width of Indonesian mainland. West Sumatera province bordered by North Sumatera Province to the North, Riau Province to the East, Jambi and Bengkulu Province to the South, and Indian Ocean to the West.
ADMINISTRATION
The province possesses administrative regions consisting of twelve (12) Regencies: Pasaman Regency, Agam Regency, Tanah Datar Regency, 50 Kota Regency, Padang Pariaman Regency, Solok Regency, Sawahlunto Sijunjung Regency, Pasaman Barat Regency, Solok Selatan Regency, Dhamasraya Regency, Pesisir Selatan Regency, and Kepulauan Mentawai Mentawai and seven (7) Municipalities: Padang, Bukittinggi, Payakumbuh, Solok, Sawahlunto, Padang Panjang, and Pariaman.
CLIMATE AND TOPOGRAPHY
West Sumatera Province has Geographic’s feature that includes plains, mountainous volcanic highlands formed by the Barisan mountain range that runs from north-west to south-east, and an offshore island archipelago called the Mentawai islands. Observed from its geographical position, West Sumatera is tropical and humid without any difference seen between rainy and wet season. Rainfall ranges from 119 to 960 mm per month relatively, whereas the lowest rainfall is from May until August of about 53mm to 564mm per month.
POPULATION AND WORKFORCE
Based on national census of 2004, the total population of West Sumatera was 4,53 million people consisting of 22 million males and 2,30 females. Most people live in Padang City of 784,74 people. Padang Panjang City has the smallest number of population with 44.69 people only, while the most populated area is Bukittinggi city inhabited by 3.971 people per one kilometer. Mentawai Islands Regency is the least populated as it is inhabited by only 11 people per kilometer. The number of population categorized as workforce was 1,96 million people (2005). 1,73 million of that number were employed that consists of 1,10 million male workforce and 0,63 million male workforce. Total job seekers in West Sumatera were 225.680 people (2005). Most of the job seekers were absorbed in the agricultural sector for 47.97%, Industrial sector for 7,51% and the rest in the trade & service sector for 44.52%.
ECONOMIC INDICATOR
In 2004, economic growth of West Sumatera showed optimistic nuance and promising reaching 5,46% higher compared to the growth of the year 2003 showing only 5,26%. Started the growth for 26,146.78 billion rupiahs in the year 2000 rose to be 27,574,40 billion rupiahs in 2004. Export value from January to December 2006 reached US$ 1,142,988,296.30 with export volume of 3,315,422.25 tons. Compared to the export value in the same period of the previous year was 3,625,243.70 tons with export volume of US$ 884,878,525.24. There was 8.52% of reduction in export volume but export volume increased to the amount of 29.17%
The largest contribution derived from primary export commodities, such as Rubber for US$ 518,129,394.01, Crude Palm Oil (CPO) for US$ 365,964,790.56 and Other Palm Products for US$ 155,159,146.64. Meanwhile, the production of Cement Industry was US$ 44,110,552.65, and Casiavera was US$ 16,210,768.59 and processed timber was US$ 9,424,670.70.
The entire primary export commodities were valued US$ 1,136,430,373.35 or 99.43% of the export value. In the same period of the previous year, the export value of such primary commodities totally valued US$ 882,608,657.31 or 99.74% from the total export. It indicated that the export value of the primary commodities increased to 28.76% and on the contrary share dropped to 0.31%.
Some of the primary export commodities showed a significant increase of export value, such as coconut oil (68%), palm products (60.74%), and rubber (44.17%), whereas coal and cardamom drastically dropped to the level of above 50% compared to the year 2005.
INVESTMENT OPPORTUNITIES
Plantation Sector
- Palm Oil Plantation in the Regency of Agam, Pesisir Selatan, and Sawahlunto Sijunjung.
- Betel nut plantation and processing in the Regency of Pesisir Selatan and 50 Kota
- Cocoa plantation in the Regency of Padang Pariaman, Agam, Pesisir Selatan, and Pasaman
- Coconut plantation in the Regency of Padang Pariaman, Agam, Pesisir Selatan and Mentawai Islands.
- Arabica coffee plantation in the Regency of Agam, Solok and Tanah Datar
Animal Husbandry Sector
- Beef cattle in the Regency of Sawahlunto Sijunjung, Agam, 50 Kota, Pasaman and Solok
- Cow fattening in the Regency of Padang Pariaman, Solok, Agam and Sawahlunto Sijunjung.
- Purebred chicken fledging in the Regency of 50 Kota, Padang Pariaman and Agam.
Fisheries and Marine Sector
- Integrated fish catch and processing in the Regency of Mentawai Islands, Padang Pariaman, Pesisir Selatan and Pasaman.
- Grouper cultivation using floating nets in the Regency of Pesisir Selatan and Mentawai Islands.
- Tuna and Skipjack catch in the Exclusive Economic Zone (ZEE).
Industry Sector
- Integrated coconut processing industry in the Regency of Padang Pariaman and Agam.
- Palm Oil processing plant in cooperation with the local farmers in the Regency of Sawahlunto Sijunjung, Pasaman, Agam and Pesisir Selatan.
- Coke and Briquet industry in the Regency of Sawahlunto Sijunjung and in the Sawahlunto Municipality.
- Arabica coffee processing industry in the Regency of Solok, and Tanah Datar.
- Garment industry in the Regency of Padang Pariaman, and Agam
- Fish processing industry in the Regency of Pasaman and Pesisir Selatan
Tourism Sector
- Development of gunung Padang hotel and Air Manis Tourism Resort in Padang City
- Development of Marine tourism (Surfing, diving/Snorkeling, Jet sky, Restaurant and Cottage) in Mentawai Islands.
- Development of Mandeh Tourism Resort in Pesisir Selatan Regency
- Development of Sianok Canyon Bridge and Tourism Resort in Bukittinggi City
- Development of Cable Car and Tourism facilities in Agam Regency
- Harau Valley Tourism Areas in 50 Kota Regency
Mining Sector
- Coal mining in the Regency of Sawahlunto Sijunjung, Pesisir Selatan, and Tanah Datar
- Iron ore mining in the Regency of Pasaman, Solok Selatan and Pasaman Barat
- Iron Sand mining in the Regency of Padang Pariaman and Agam
- Mining and Processing of Semi precious stones in the Regency of Pesisir selatan and Solok
Infrastructure Sector
- Development and management of Toll Bridge of Kelok 9, bordering West Sumatera Province with Riau Province to enhance the goods and passengers flows between the two provinces.
* For further information, do not hesitate to contact:
Shawaludin Mohd Din
Naib Presiden 3
Pengerusi Biro Ekonomi dan Asas Tani
Tel : 012-309 2001
West Sumatera Investment Opportunities
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