Kamis, 28 September 2017

COMMODITIES HOLD POTENTIAL TO BOOST ACEH'S GROWTH

 by Andi Abdussalam
          Jakarta, Sept 28 (Antara) - Aceh has some 30 percent of agricultural and plantation land area; hence, agriculture and food have become the mainstay sectors for its economic growth.
        The Aceh regional government, on its website acehprov.go.id, stated that out of some five million Acehnese, 70 percent live in rural areas, of which 70 percent are farmers.
        Hence, apart from other sectors, such as industry, the agricultural sector has the potential to absorb workers. Aceh has a workforce of more than two million.
        In 2015, of the total workforce reaching 2,182,824, some 216,806 were unemployed.   
   Hence, developing the agricultural sector is one of the Aceh government's priority programs as stated in the Aceh Mid-Term Development Plan 2012-2017.

        Efforts by the regional government to develop and advance the agricultural and plantation sectors have yielded positive results.
        According to Yufrizal, the chief representative of Bank Indonesia for Lhokseumawe, the agricultural and plantation sectors have contributed to Aceh's economic growth.
        In the second quarter of this year, some agricultural commodities and plantations became the main growth contributors.
        Aceh Province recorded a higher economic growth in the second quarter as compared to the first quarter of 2017 owing to the contribution of several sectors, particularly plantation, and other agricultural commodities.



        Yufrizal said Aceh's higher economic growth in the second quarter of 2017 was recorded at 4.01 percent. Although regional economic growth in Aceh was better in the second quarter of this year, yet it was lower than the overall economic growth level of 4.09 percent year-on-year on the island of Sumatra.
        Apart from the increase in added value and the value of production of agricultural commodities playing a significant role, other factors that influence Aceh's economic growth are an increase in the export value, as a result of increased production and improved prices of commodities, such as coal and iron ore.
        Aceh's exports until July this year were recorded at US$38.67 million, a sharp increase as compared to its total exports in 2016 that stood at $22.85 million.
        In terms of monthly performance, the export value through the port in Aceh Province in July 2017 reached $4.91 million, or a decline of 1.15 percent, as compared to that in June
   On the other hand, the value of its imports in July 2017 was recorded at $2.25 million, or down by 69.04 percent as compared to June.

        Aceh's trade balance in July 2017 experienced a surplus of $2.66 million, up 216.23 percent as compared to the previous month. 
   Yufrizal said that an increase in household consumption owing to the disbursement of the civil servants' 13th salary coupled with the Ramadan fasting month and its subsequent Idul Fitri festivities also played a role in economic growth.

        According to Yufrizal, Aceh's economy will improve again in the third and fourth quarters of 2017.  
   "Aceh's economy will improve in line with the ongoing infrastructure projects and private investment," he concluded.

        Based on data quoted by the Aceh office of the Central Bureau of Statistics, Aceh's economy in the second quarter of 2017, as measured on the basis of the current prices and gross domestic product, had grown to Rp35.70 trillion, or $2.68 billion. It rose 1.38 percent from that recorded in the first quarter of 2017.
       The increase in economic growth has contributed to the expansion in business activities and to an increase in employment opportunities.
        Most importantly, Aceh is currently developing its special economic zone in Arun, or KEK Arun. This economic zone can serve as a new magnet for job opportunities and has the potential to absorb lots of workers.
        Head of Integrated One-Stop Service of Lhokseumawe's Capital Investment Office, Amiruddin, stated that KEK Arun could be ascertained to offer a lot of job opportunities if its construction could be finished as planned.
         Of course, the presence of the special economic zone will give rise to various types of new industries and businesses in the special area economic zone. In fact, the special economic zone will not only develop the industry but will also have an impact on the economic changes around the region, Amiruddin noted.
         Related to the labor absorption in the special economic area, Amiruddin remarked that the work force in Lhokseumawe City are expected to compete for filling various job vacancies that will be needed later.
         Moreover, he explained that in Lhokseumawe, apart from high school graduates, there are also many graduates of various public and private universities who are ready to work. Therefore, the opportunities for manpower needs in the KEK Arun Regions can be utilized as optimally as possible.
         "This opportunity should be utilized by Lhokseumawe people in filling various jobs in accordance with the needs of employment," Amiruddin stressed.
         In fact, the Head of the agency in charge of labor issues in the city of Lhokseumawe also revealed that the Lhokseumawe local government is working to build an Integrated Training Center (BLK) in order to meet the needs of a reliable and competitive future workforce.
          "We are working to build an integrated worker training center (BKL) that can educate prospective workers with a variety of skills and work experience to fill the labor market in the future," Amiruddin revealed.***3***(A014/INE)EDITED BY INE
(T.A014/A/BESSR/A. Abdussalam) 28-09-2017 15:36

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