Aceh government pushes industrialization through new investment deals

The Aceh government is shifting its economic strategy from exporting raw commodities to promoting regional industrialization and downstream processing. This initiative aims to ensure that value-added benefits and job creation remain within the province rather than being realized in other regions.

During the Aceh Economic Development Forum (AEDF) 2026, the regional government, through PT Pembangunan Aceh (PEMA), secured investment agreements totaling over Rp300 billion. These agreements include partnerships with two Malaysian companies: Kedah Agro Ausin Berhad, focusing on agroindustry, logistics, and livestock, and Tigallapan Investama, which will conduct joint studies on renewable energy potential.

Additionally, the forum saw agreements with three domestic firms: PT Citaglobal for sustainable energy and fuel studies, PT Banda Sentra Nasional (BSNS) for telecommunications infrastructure, and PT Indo Surya Galvalume (ISG) for the launch of a lightweight steel and precast brick factory. The government intends for these partnerships to create a concrete roadmap for investment, regulation, and infrastructure development.