Aceh Economic Review

NANGGROE ACEH DARUSSALAM

• GEOGRAPHY Area : 55,392 sq km, which is located between 2o and 6o North Latitude and between 95o and 98o East Longitude.
• Administrative : The Province of Naggroe Aceh Darussalam (NAD) consists of 8 regencies, 2 municipals, and 2 administrative towns with Banda Aceh as its capital city.
• Borders : Malacca Strait on the north, Indian Ocean on the west, Indian Ocean and the North of Sumatra on the south, Province of North Sumatra and Malacca Strait on the east.
• Physical Features : The Bukit Barisan Mountain range rises from the northern part of NAD along the entire length of Sumatra.
• Humidity : Varies between 67% and 86%.
• Rainfall : In the western and Sumatra coastal plains averagely 2,000-3,000 mm per year and in the northern and eastern coastal plains : 1,000-2,000 mm per year.
• Temperature : Ranges between 23o C and 33o C.
• DEMOGRAPHY : The community of the NAD Province consists of many ethic groups such as Aceh, Gayo, Alur Tamiang, Aneuk Jamee, Kluet, Pulo and Singkil.

Population density of NAD in 1994 reached 66 people per Km2. Compared to the national population growth (2.144% per year), NAD is on the higher level with 2.5% per year in the 1990-1994 period. The projection population composition in 1997 can be seen on the following table. ECONOMY The greatest contribution to the Gross Regional Domestic Product (GRDP) of the NAD Province in 1995 is made by mining, manufacturing, agriculture sectors, with 77.3% share of the total GRDP. In the 1993-1994 period, the economic grew at a rate of 5.3%. In 1994, GRDP of non oil and gas reached Rp. 6,606,737 Million, gas and related products amounted to Rp. 6,192,092 Million so that the total of GRDP in 1994 reached Rp. 12,798,829 Million. During the Five Year Development Plan VI, the GRDP is projected to grow at 6.3% per year. The greatest contribution of agriculture to the GRDP made by horticulture sub-sector, while mining was contributed by oil and gas, and manufacturing by oil and gas industry. Wholesale trading and retail trading dominated the GRDP of trade, hotel and restaurant sector. Oil and Gas are the main export of the NAD which consists of condensate, LNG, while Urea Fertilizer is the prominent export product in industrial sectors amounted to US$ 158.2 Million. The total export value reached US$ 2,631 Billion in 1995. This province is the third largest contributor of foreign exchange in the national export energy to Indonesia after Riau and East Kalimantan. Most of imported products was consumed by industrial companies who run their business in processed manufacture such as cement, plywood, paper, and other processed product. Principally, a type and value of imported products was classified into 3 groups, such as capital goods (machines) amounted by to US$ 4.7 Million, spare-parts of US$ 9.4 Million, and raw materials of US$ 17.2 Million. Total of import for the NAD Province in 1995 amounted to US$ 31.3 Million. PRIMARY PRODUCTS

• Food Crops : Rice, Corn, Peanuts, Small Green Peas, Cassava, Vegetables, Sweet Potatoes, and Fruits.
• Commercial Crops : Palm Oil, Rubber, Coconut, Coffee and Cacao.
• Livestock : Cows, Buffaloes, Goats, Sheep, Horses, Pigs, Chicken and Ducks.
• Fish Products : Sea and fresh water fishes.
• Forest Products : Logs, Sawn-Timber, Processed Woods, Plywood, Block-Board and Chips. Mining : Petroleum, LNG, Gold, Iron, Platinum, Copper, Tin and Cement.
• Handicrafts : Gold Works and Rattan Plaintings.
• Tourist Attractions : The Baiturrachman Great Mosque, Aceh State Museum, The Graves of Sultan Iskandar Muda and of Teuku Syah Kuala, Ujang Batee and Lampuk Beaches, Tjut Nyak Dien Museum, Rubiah Sea Garden, Simpang Balok Hot Water Pool, Linga Isaag Hunting Area, Leuser National Park, Cakra Donya Bell, remains of the Samodra Pasai Kingdom and Teuku Cik Ditiro Hereos Cementery.

NATURAL RESOURCES POTENTIAL NAD has natural resources which have not been optimally exploited. The economic sub regional cooperation among Indonesia, Malaysia and Thailand called Indonesia-Malaysia-Thailand Growth Triangle (IMT-GT) is expected to accelerate the use of existing natural resources potential in this area, as can be seen on the following table. DIRECT INVESTMENT Based on the foreign direct investment (PMA) approvals, the most favorable sector was industrial sectors with 7 projects amounted to US$ 2 Billion. From those industrial sectors, the biggest approval value was contributed by chemical industry with 2 projects amounted to US$ 1.96 Billion. The other favorable sectors of investment are food, wood, and paper industry. In the 1991-1995 period, the total value of PMA approvals reached US$ 2.2 Billion. Domestic investment (PMDN) was dominated by agriculture sector focused on (11 projects) while 6 of them were plantation sectors. Industrial sectors attracted by domestic investors are food industry and chemical industry. The value of PMDN approvals was Rp. 2,290 Billion of which Rp. 1,128 Billion contributed by a paper project. INDUSTRIAL ESTATE/ZONE Industrial sectors are considered as prospective fields of investment and offers job opportunities. From this stand point, the local Government prioritized Industrial Zone of Aceh Besar and Lhokseumawe as one of Prime Estate Development in order to attract investors contributing to many industrial sectors. AIRPORT AND/OR SEAPORT Air transportation in this province is supported by 7 airports where as Bandara Blang Bintang Airport is Banda Aceh as the main airport. In the 1993/1994, Blang Bintang Airport has been landed by DC-9 and Boeing 737 air lines. This airport has already served 975 flights, 58,214 passengers, 831,319 Kg of flight goods and 101,950 kg of airmail, and also 421,837 kg of baggage. The other airports such as Cut Nyak Dien Airport in Meulaboh, Cut Ali Lasikin in Sinabang, Cut Bak U in Sabang, Tanjung Seumantok in Langsa and Sucfindo in Singkil, and also Malikul Saleh Airport in Lhokseumawe are considered as pioneering airfields. SEA PORTS The NAD has 13 oceans ports. Some of them are Kuala Langsa Harbor classified as fourth class ocean harbor for serving international trade, with a quay of 100 m in length and 8.1 m in depth. Malahayati Harbor classified as third-class seaport with a quay of 100 m in length and 6-7 m LWS in depth. Sabang Harbor classified as fourth class seaport for serving international trade with a quay of 328 m in length and 7.5 m in depth, while a maximum of 150 m in length for ships moored on this harbor. In addition, there are three special seaports, such as Blang Lancang Harbor for exporting Liquid Natural Gas and condesat, Pupuk Asean Seaport and Pupuk Iskandar Muda in Lhokseumawe and also Laut Lhok Nga Aceh Besar Seaport for exporting cement. UTILITY Electricity (usage) : 331,799,380 MWH. Water Supply (usage) : 6,111,087 M3 per year. Telephone : 37,529 lines. SKILLED LABOR DEVELOPMENT The development of manpower through training and precisely effective education organized by Job Training Center, Ministry of Manpower is to increase productivity and technological knowledge, management and entrepreneurship of trainee in order to create labors and entrepreneurs who are skilled, autonomous, capable to grab and to exploit any opportunity, and ready to compete in doing business,