Lampung

At the southern tip of Sumatra, where the Sunda Strait opens toward Java, Lampung emerged as a chokepoint for pepper and spice traders as early as the 14th century. The VOC colonized this geography in the 17th century, routing the pepper trade through their controlled ports. When the Dutch introduced coffee cultivation across Indonesia, Lampung's volcanic slopes became prime Robusta territory.

Three centuries later, Lampung remains Indonesia's coffee and pepper hub—not as a producer but as the pricing nexus. The Commodity Futures Trading Regulatory Agency tracks national Robusta prices from Lampung, making this province the reference point for Southeast Asian coffee trading. Over half the population still depends on agriculture, which contributes 23.78% of GRDP. The province grew 4.57% in 2024, the strongest post-pandemic performance, though El Niño disrupted rice harvests with a 10.97% agricultural contraction in Q1.

Lampung's future lies in its transmigration demographics. Javanese settlers, relocated here since the colonial era, now outnumber indigenous Lampungese. By 2026, this Java-Sumatra hybrid culture will determine whether Lampung stays an agricultural province or industrializes like its neighbor Banten.