North Sumatra Investment Book

REMARKS BY THE GOVERNOR OF NORTH SUMATRA PROVINCE BB BANK INDONESIA BANK SENTRAL REPUBLIK INDONESIA 323 Edy Rahmayadi Governor of North Sumatra North Sumatra Province is one of the Indonesian economy pillars with historically economic growth above the nationals. GRDP per capita of North Sumatra Province in 2022 is around IDR 63.19 million/person supported by abundant natural resources thus encouraging higher export activities so North Sumatra can still exist compared to other regions, thus making North Sumatra become one of the growth engine for the national economy outside Java island. It's still possible for North Sumatra to boost the national economy higher. Its geographical advantage, which is directly adjacent to the Malacca Strait, makes North Sumatra being the center of trade and national connectivity hub in the western region of Indonesia. Moreover, from a demographic perspective, North Sumatra has a prospective market advantage. This is reflected in the population which is the 4th largest in Indonesia, where more than 50% is dominated by people of productive age. The natural beauty of North Sumatra contains many potentials that also contributes greatly to the economy through the tourism sector. Our main attraction is Lake Toba, which has been designated as the Global Geopark by UNESCO and a national priority tourist destination. To support in becoming an international standard tourist destination, infrastructure development continues to be developed, especially to advance connectivity. Various National Strategic Projects currently being developed include the eastern Sumatra route and the toll road from Medan to Lake Toba. To strengthen the connectivity of air transportation modes, North Sumatra also has 2 international airport that have direct flights to Singapore and Malaysia and 5 airports that serve domestic flights. Meanwhile, in the sea transportation mode, there are 6 ports to strengthen the maritime side. In line with our efforts to continue socio-economy development in North Sumatra, our 7 strategic investment projects are expected to generate a sustainable economy. The Regional Government of North Sumatra has never stopped providing support for the development of regional investment projects. We continue to strive supporting structural transformation and ease of licensing procedures that are more efficient. Ease of fiscal and non-fiscal for the business community, relatively cheaper wages for labor, and easy access to raw materials create an excellent investment climate in North Sumatra. Medan, 2023 Edy Rahmayadi Governor of North Sumatra 4 North Sumatra Investment Book

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