North Sumatra Investment Book

B BANK INDONESIA BANK SENTRAL REPUBLIK INDONESIA Aceh 4.21% Sumatra Economic Growth W. Sumatra 4.36% N. Sumatra 4.73% Bengkulu 4.31% 8,00 Riau Islands 5.09% 6,00 4,00 Riau 4.55% 2,00 Jambi 0,00 5.13% -2,00 S. Sumatra -4,00 5.23% Bangka Belitung 4.40 -6,00 Lampung 4.28% ECONOMIC PERFORMANCE North sumatra, national economic growth and north sumatra gdrp share toward sumatra & national 35 5,26 5,0 30 4,88 25 20 22,63 15 10 5 0 III IV | || ||| IV 2018 2019 2020 2021 2022 National Economic grw (%. Yoy) I N. Sumatra Economic grw (%.yoy) N. Sumatra Economic share twd National (%) Source: BPS, processed North Sumatra's economic recovery in 2022 continues and grows 4.73% (yoy) higher than the previous year. The pandemic conditions that were better than the previous year were supported by the continuation of various government incentives to encourage domestic demand. The improvement also contributed to better business activity than the previous year. The realization of North Sumatra's economic growth in 2022 is still within the target range of projection, which is 4.1-4.9%. In terms of expenditure, household consumption was supporting North Sumatra's economic growth in 2022. The continuation of various national economic recovery (PEN) incentives such as the 3% ultra micro credit (KUR) program, disbursements of social assistance (bansos), and housing tax (PPN-DTP) incentives in the midst of economic activities that adopt a new normal encourages household consumption performance. The improvement in domestic pandemic conditions also contributed to positively investor sentiment, which help to increase investment performance. On the other hand, government consumption moderating due to lower procurement spending for Covid-19 handling as the number of Covid-19 cases is slowing down. Geopolitical conflicts that occurred throughout 2022 had an impact on the global economic slowdown and potentially restrain the performance of North Sumatra's international trade. The slow down in the international trade in line with the decline of demand from trading partner countries amid an increase in prices of major commodities such as CPO. In terms of industrial fields, growth comes from all major business fields. The adaptation of new habits and the acceleration of vaccination have encouraged the easing of mobility restrictions, which in turn has contributed to the performance of the Transportation and Warehousing Sector. The increasing purchasing power accompanied by the government's continued stimulus has also encouraged an increase in the Trade Sector. Construction is also starting to expand again, especially with the continuation of the Trans Sumatra Toll Road National Strategic Project and electricity infrastructure projects such as the Batang Toru hydropower plant. North Sumatra Investment Book 19

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