Aceh’s economy was in an uptrend performance, before in 2020 it’s slumped amid pandemic COVID-19. Agriculture & household consumption remains the driver of growth, those sectors help prop the ailing economy during the pandemic downturn so that Aceh’s gross regional domestic product plunges relatively moderate compare to GDP. In the middle of 2021, the positive economic growth indicate the recovery has been going on.
With an increase of 2.56% compared to the same period last year (yoy), this achievement was quite progressive because it was able to escalate the economy in the previous month which fell as deep as -1.95 yar on year. Based on business field, Aceh’s economic growth was massively supported by the agricultural sector (30.77%) and trade (15.02%). Meanwhile, in terms of expenditure, household consumption (58.43), investment (34.71) and government consumption (24.41) are very powerful and dominate.
To ensure economic performance and market stability, stakeholders throughout Aceh continue to collaborate in controlling consumer price index. Historically, inflation in Aceh has been maintained and is in a stable and predictable position so that it does not interfere the regional economy. During the past 5 years (2015 – 2016) inflation in Aceh province has tended to decline. The highest inflation rate occurred in the fourth quarter of 2017 at 4.25% (yoy) and the lowest in the mid of 2020 at 1.36% (yoy).
In order to improve the quality of the economy in Aceh as well as strengthen foreign exchange reserves, Aceh is a region that strongly supports export activities in various sectors. Of all commodities, the export value in general has increased from 2018 to 2021 in the first quarter. This number is also a good signal of export activities after the COVID-19 pandemic. From the available data, the increase in exports reached 49.52% with a nominal value of $32.65 million in the second quarter year on year.
To foster the investment in Aceh, the regional government formalize several policies that provides investor-friendly circumstances across Aceh. As mentioned in the Qanun No. 5/2009, investors will be given various facilities such as legal certainty, openness, accountability, professionalism and equality.
Political stability and optimal service for investors will also be a priority to ensure the comfort of investing in Aceh. Likewise, with the availability of adequate infrastructure, intensive coordination with relevant technical agencies to synchronize infrastructure planning with investment needs also continuously pursued.