NANGGROE ACEH DARUSSALAM - Kadin Indonesia

NANGGROE ACEH DARUSSALAM
The NAD province is located in the most west of Archipelago Islands. This region has a
strategic position as the gate of trading and cultural traffic, which has been connecting East
and West since the past centuries. Aceh region is known as a transit place of Chinese, Europe,
India and Arabic merchants. This relationship made Aceh region as the first entrance of culture
and religion into the Archipelago. According to the history, Aceh is the first place of Islamic
dissemination in Indonesia where the first Islamic empires have established in Peureulak and
Pasai. Sultan Ali Mughayatsyah had established the empire and located capital city in Bandar
Aceh Darussalam (now called with Banda Aceh). In that time, Islamic religion and culture had
a large influence in the daily life. So that this region has been called as "Seuramo Mekkah"
(front porch of Mecca). In the past, the Indonesia government implemented centralized
policies that resulted such a conflict or rebellion in Aceh region. Recently, the government
changes its policies by providing special autonomy for Aceh region under Law No. 18 Year
2001 of which the province of Aceh Special Region is changed to become the province of
Nanggroe Aceh Darussalam (NAD). Many potential natural resources have an important role to
activate domestic economy of Nanggroe Aceh Darussalam (NAD), especially mining and
industrial sectors. The two sectors contributed 68% of the total GRDP. Nowadays, nonagriculture
sectors such as mining, industries and energy develop fast. However, agriculture
sector including plantation, which covers approximately 60% of total area, is estimated to
grow fast to keep its development equal with that of the development of non-agriculture
sectors. Along with the policies to distribute development of sectors, the government has set
up the NAD province region into two (2) investment development zones based on its
configuration, potential resources and limitation. This province has total area of 57,365.57
km2. Most regions that are covered with forest areas are rich of a high economic value
commodity that is oil and gas. Other main commodities include forestry, mining, industries,
fisheries and plantation sectors with its main commodities such as palm oil, rubber, coconut,
clove, coffee, tobacco, sea and fresh water fisheries, metals, coal, gold and other minerals.
GEOGRAPHY
• Region: Province of Nanggroe Aceh Darussalam is located between 20-60 North latitudes
and 950-980 East longitudes. The largest region is West Aceh regency with 10,033 km2,
while the smallest area is Banda Aceh City, with 61-km2 areas.
• Government Administration: In 2002, the government administration was extended to
become 16 regencies and 4 cities. The existing regencies comprise the regencies of
Simeulu, Aceh Singkil, South Aceh, South East Aceh, East Aceh, Central Aceh, West Aceh,
Aceh Besar, Pidie, Bireuen, North Aceh, West South Aceh, Gayo Lues, Aceh Jaya, Nagan
Raya and Aceh Tamiang. In addition, there are also the cities of Banda Aceh, Sabang,
Lokseumawe and Langsa. The following table provide the administrative area of regencies
and cities and their extention as well:

• Rainfall: The average annual rainfall is 1000-2000 mm with the average temperature is
around 23.30C - 31.2 0C.
DEMOGRAPHY
• Population: In 2001, population reached 4,144,500 inhabitants, comprised 2,072,000
(49,94 %) male and 2,072,500 (50.06%) female. The most densely populated area was
Banda Aceh regency (400 people/km2), while the most rarely population was in Central
Aceh city (20 people/km2)
• Population Growth: In 2001, the annual population rate increased 2.72 % compared to it
was in the previous year.
• Labour Force: In 2001, the labour force reached 1,751,300 people (41%) from the total
population. While the fully unemployment or people who were looking for a job reached as
much as 98,853 people (2.38 %).
THE ECONOMY
• Gross Regional Domestic Products: In 2001, the GRDP of NAD province was amounted
to Rp 6,193.9 billion. The most shares were contributed by agriculture sectors (40.94%),
followed by transportation and telecommunication (15.17%), processing industries
(11.49%), trading, hotels and restaurants (10.87%) and building/ construction (6.18%).
The remaining sectors such as finance, leasing, business services, electricity and drinking
water contributed lees than 5 percent.
• Export and Import: In2001, the export value was recorded US$ 6,378,051.00,
contributed by oil and gas as well as non-oil and gas commodities. Meanwhile, the import
value was amounted to US$ 8,128,861,000.00 consisted of capital goods, components, raw
materials and consumption goods.
• Income Per Capita: In 2001, the average income per capita reached Rp 3,359,052.00.
• Economic Growth: In 2001, the average economic growth of all sectors reached 1.56%.
This figure was better compared those was reached in the previous year at 1.33 percent.
• Minimum Wage Rates: In 2001, the average regional minimum wage rates were
amounted to Rp. 216,000.00 per month

NATURAL RESOURCES
• Farming (Agriculture): In 2001, the food crop area was approximately 360,640 ha,
covered 79,090 ha technical irrigated fields, 98,650 ha semi technical irrigated fields and
122,379 ha fields depending on the rainfall. There are only 226,722 ha irrigated field in this
province. However, the average annual harvesting area reached 326,036 ha, contributed by
the average production of the area that reached 4.2 ton per hectare.
• Plantation: The plantation area reached around 209,435 ha. In 2000, the main
commodities production covered: palm oil with production of 285,662 ton CPO and 53,852
ton kernel, rubber production of 26,479 ha area and coffee of 99,434 ha area.
• Fisheries: In 2000, the potential area of sea waters reached 33,000 km2 with fish
production of 173,045 ton.
• Forestry: In 2001, the area of cultivation forests reached 3,547,913 ha, consisted of
conservation forests including protected forests and tourism forests with the area of
2,141,783 ha (41,6%), national park of Leuser Mount with area of 666,800 ha, fixed
production forests with the area of 592,280 ha, limited production forests with the area of
813,850 ha and production forests with the area of 1,406,130 ha.
• Animal Husbandry: In 2001, the main production of large, medium and small farming
was relatively stable. The regional government has supported the effort to develop farming
of which it resulted a better condition to the cattle businesses in this region.
• Mining: In 2001, the main products of mining sector covered cement and liquid natural
gas (LNG). Other minerals such as limestone, clay and sand were only benefited to fulfil raw
material needs. Up to now, LNG has become the prime commodity because the most
products have been provided to fulfil the export market.

INFRASTRUCTURE
• Land Road: In 2001, the road network covered 15,202.08 km length, comprised 1,144.02
km State road, 2,511.26 km provincial road and 11,546.80 km local (regency/ city) road.
• Airport: In 2001, NAD province had 7 airports An 1 airport that is Sultan Iskandar Muda
airport, is classified into international airport with 2,500 m runway. Meanwhile, other
airports can only serve Fokker 27 airplane or other series. In 2001, passenger flow was
recorded as 43,423 people arrived and 43,724 people departed.
• Seaport: In 2002, there were 8 ports in NAD province. The most important port is
Lhokseumawe port with 1,320 m pier that can serve 10,000 DWT ships

• Telecommunication: There are 88,740 fixed lines that reached almost all regencies/cities
in this province. The connecting lines are amounted to 79,930 lines as indicated in the
following table :
• Energy and Electricity: In 2001, NAD province had 168 units of power generations by
Diesel powered generation with the capacity of 260 Mw and Hydropower generation with
the capacity of 2 Mw. The installed capacity of PT. PLN (Persero) (State electricity
enterprises) reached 157.396 MWh. In addition, the government provided electricity from
private companies with the capacity of 476,775 MWh of which 511,888 MWh has been
distributed.
• Clean (drinking water): In 2002, from the existing region, amounted to 13
regencies/cities provided the clean/drinking water treatment with the capacity of 1,887
litter/second. The recorded consumption reached 290.87 litter/second. The lowest capacity
was provided by the installation of Aceh Singkil regency (10 liter/second) and the highest
capacity was provided by the installation of Banda Aceh city (943 litter/second). The
average capacity supplied by water installation in all regions reached 60 litter/second,
except in Sabang installation that only reached 40 litter/second.
SUPPORTING INFRASTRUCTURE
• Banks and Insurances: At this moment, NAD province has 6 State banks, 2 private
banks with 29 offices and 5 insurance companies with 9 branches.
• Hotels: In 2000, there were 673 beds of star hotels and 134 non-star hotels with capacity
of 2,261 beds.
• Health Facilities: Many health facilities were available in the province such as 13
governmental hospitals with 1,388 beds, 13 private hospitals with 773 beds, 218 Public

health centres with 75 beds, 6 private laboratories located in 4 regencies and 1
governmental laboratory.
• Education and Training: In 2002, education and training facilities covered 3,227
elementary schools, 528 junior high schools, 215 senior high schools, 50 vocational schools,
46 universities and 2 training courses.
• Trade Centres: A shopping centre/supermarket is available in Banda Aceh city. In
addition, there are 21 traditional markets spread out all over regencies/ cities. There are
allow 5 traditional markets are located in 5 districts.
DEVELOPMENT PLANNING
In 2004 Annual Budget, the planned infra-structure development will cover the development of
telecommunication networks with the capacity of 110,000 lines and land road of Ladia-Galaska
which will be connecting South Aceh regency, South East Aceh regency and Gayo Lues. It will
also cover the extention of (Rambee) Takengon runway to become 850 x 30 m of which it can
serve F-28 series, and Kutacene airport runway in South East Aceh as well as Singkil airport so
that it can serve CN 235 series. In addition, the government will develop seaport in Ulee
Lheue.
INVESTMENT OPPORTUNITIES