Medan – Chairman of the North Sumatra Provincial Chamber of Commerce and Industry (Kadin North Sumatra) Firsal Dida Mutyara expressed full support for North Sumatra Governor Bobby Nasution’s initiative to encourage governors and regional leaders across Sumatra to strengthen interprovincial collaboration and cooperation through the establishment of the Forum Sumatra 10.

Bobby Nasution made the proposal during the Sumatra Governors’ Coordination Meeting, held on the sidelines of the 32nd Indonesia-Malaysia-Thailand Growth Triangle (IMT-GT) Ministerial Meeting at JW Marriott Medan on Wednesday (September 9, 2026).

“We in the business community strongly welcome Mr. Bobby’s initiative. So far, each province in Sumatra has been moving independently, even though the island has tremendous potential. If these 10 provinces truly work together, the impact will be much greater than if they continue to operate separately,” Dida said.

At the coordination meeting, Bobby Nasution outlined four cross-provincial collaboration schemes. First, the integration of value chains for leading commodities, from production centers to industrial hubs. He cited North Sumatra’s palm oil industry, which currently produces around 120 downstream products.

Second, the development of an integrated interprovincial logistics network, including a proposed railway line connecting production centers in areas such as Aceh, North Sumatra, and West Sumatra to export ports via the Malacca Strait and the Indian Ocean.

Third, project-based cooperation through the establishment of joint-owned regional enterprises (BUMD) involving multiple provinces, as well as the formation of a syndication involving eight Regional Development Banks (BPDs) across Sumatra as an alternative financing mechanism. Fourth, strengthening food price stability through an interregional buffer stock scheme to support national food self-sufficiency.

Dida said the four schemes addressed fundamental issues that had hampered Sumatra from maximizing its potential.

“The problem has not been a lack of potential, but connectivity. Our palm oil production is large, but downstream processing is still limited, and interprovincial distribution routes are also not yet efficient. If these four schemes are implemented, I believe they are the right answer,” he said.

Based on data presented by Governor Bobby Nasution, Sumatra contributed 22.08% to Indonesia’s national Gross Domestic Product (GDP) in the first quarter of 2026, equivalent to more than Rp1,361 trillion, and increased to more than Rp2,812 trillion in the first half of 2026. Sumatra also supports several strategic national commodities, accounting for 75% of national rubber production, 74% of coffee production, and more than 55% of palm oil production.

“A 22% contribution to national GDP is already significant, but in my view, it is not yet optimal compared with the island’s actual potential. We account for 75% of national rubber production, more than 55% of palm oil, and 74% of coffee, but much of it is still sold as raw commodities. If downstream processing develops and interprovincial connectivity is established as proposed by Mr. Bobby, I am confident that Sumatra’s share of the national economy can rise even further,” Dida said.

Dida explained that cross-provincial collaboration would not only increase Sumatra’s aggregate economic contribution, but also have the potential to drive economic growth and Gross Regional Domestic Product (GRDP) in each province.

“The logic is simple. If logistics routes become more efficient, distribution costs will fall, and the volume of processed products will increase. Automatically, the value added created will also rise in every participating province, not just in one area. This means each province’s GRDP will also increase, and economic growth will be boosted,” he said.

He cited the proposed syndication of eight Regional Development Banks across Sumatra and the establishment of joint regional enterprises involving multiple provinces as financing instruments for regional projects.

“So far, many strategic interregional projects have stalled because of financing issues. If these regional development banks form a syndication, their financing capacity will become much greater. Infrastructure and downstream processing projects that have so far remained only proposals can actually be implemented. This is what will drive real economic growth on the ground,” he said.

Dida further highlighted the importance of the collaboration in reducing disparities in economic growth among provinces across Sumatra. He noted that economic contributions among Sumatra’s provinces remain uneven, with North Sumatra being the largest contributor to GRDP in the region, while several other provinces have significantly smaller economies.

“If the value chains and logistics routes are integrated, provinces that have lagged behind can also share in the value added, rather than merely becoming spectators or simply suppliers of raw materials to other provinces. This will make growth across Sumatra more evenly distributed, rather than as uneven as it is today,” he said.

This view is in line with the expectations expressed by Jambi Governor Al Haris, who also attended the coordination meeting. He said interprovincial cooperation was expected to transform Sumatra into a more integrated region with increasingly balanced development, benefiting not only national economic growth but also strengthening the economies of individual provinces.

Firsal added that Bobby Nasution’s initiative was also aligned with the principles of sustainable development while supporting the central government’s agenda to accelerate national economic growth.

He noted that the initiative had received a positive response from Minister of Home Affairs Tito Karnavian, who viewed the initiative to bring together the 10 governors of Sumatra as more than a routine meeting, but as an opportunity to break down bureaucratic barriers and strengthen development connectivity across western Indonesia.

“If the regions are already moving together and the central government also supports them, this is the right combination. Strengthening the regional economy in this way will ultimately lead to higher and more sustainable national economic growth, because growth will be supported by many regions simultaneously rather than relying on just one or two provinces,” he said.

As a representative of the business community in North Sumatra, Firsal affirmed that Kadin was ready to fully support the implementation of this collaboration, including by encouraging businesses to participate in downstream processing initiatives and interprovincial infrastructure projects.

“We will continue to monitor and support this from the business community’s perspective. If regional governments across Sumatra are already united in this way, the business community must play an active role to ensure that this collaboration truly produces results, rather than remaining merely an agreement on paper,” Dida said.