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Aceh’s exports grew by 13.03 percent year-on-year in early 2025, reaching US$162.1 million. However, the increase has not fully translated into stronger regional economic growth because some commodities are still shipped through ports outside Aceh, while government spending does not always generate productive economic impacts quickly. This finding comes from a 2026 study by Sepni Yanti, Muh. Halilintar, and Syaiful of University of Borobudur. The study examines how exports and government expenditure contribute to economic growth in Aceh as the province approaches the end of its special autonomy funding era.
Aceh Has Significant Export
Potential
Aceh has natural resources and a
strategic geographic position that provide strong opportunities for trade-based
economic development. The province’s export commodities include coal, coffee,
palm oil, and areca nuts.
In early 2025, Aceh’s export
value reached US$162.1 million, an increase of 13.03 percent compared
with the same period a year earlier. Coal was the largest export commodity,
contributing around 61.50 percent, followed by coffee at 23.29
percent. Palm oil and areca nuts also made important contributions.
In economic terms, higher exports
should expand markets for local products, increase production, create
employment, and generate additional regional income. However, these benefits
depend heavily on how much of the economic value generated by export activities
remains within Aceh.
This is where logistics becomes a
critical issue.
Up to 30% of Commodities Are
Shipped Through Ports Outside Aceh
The study identified logistics
leakage, a situation in which commodities originating in Aceh are shipped
through ports located outside the province. The study estimates that
approximately 23 to 30 percent of Aceh’s commodities are shipped through
external ports.
This situation means that some
economic activities that could potentially generate additional value within
Aceh instead take place outside the province.
According to the researchers,
this represents a structural obstacle that prevents export growth from being
fully translated into higher Gross Regional Domestic Product (GRDP) in Aceh.
Sepni Yanti, Muh. Halilintar, and
Syaiful of University of Borobudur argue that improving port infrastructure and
logistics networks should be a priority so that Aceh can retain more of the
economic value generated by its commodities.
Government Spending Does Not
Automatically Drive Growth
In addition to exports, the study
examines government expenditure as an important instrument for economic
development in Aceh.
Aceh has a special autonomy
framework that gives the provincial government broader authority to manage
development, infrastructure, poverty reduction, education, and social and
health programs. This framework was strengthened, among other measures, through
Law No. 18 of 2001 and the Aceh Governance Law.
Government spending can stimulate
economic activity when it is directed toward infrastructure, education,
healthcare, and productive sectors. Investment in ports and transportation
networks, for example, can reduce logistics costs while improving the competitiveness
of local businesses.
However, a large budget does not
automatically produce high economic growth.
The study shows that the
effectiveness of government spending depends on its quality, timing, and
allocation. Spending that is delayed or directed toward less productive
activities may have only a limited economic impact.
Researchers Used Interviews
and Government Data
To examine these issues, Yanti,
Halilintar, and Syaiful used a qualitative descriptive-analytical approach.
The researchers collected data
from two main sources. First, they conducted interviews with stakeholders,
including officials from Bappeda Aceh, port authorities, and regional
economic experts. Second, they used secondary data from government reports,
Statistics Indonesia’s Aceh office, and legal documents related to Aceh’s
governance.
The data were analyzed by
identifying key themes, including the effectiveness of special autonomy
funding, logistics constraints, government spending priorities, and the
relationship between fiscal policy and export performance.
The researchers also compared
information from different sources to assess whether the findings were
consistent with economic conditions in Aceh.
Aceh Needs to Retain More
Value Within the Province
One of the study’s key messages
is that Aceh needs to do more than simply increase export volumes. The province
also needs to ensure that production, processing, distribution, and other
economic activities related to exports take place within Aceh whenever possible.
Dependence on raw commodities is
another challenge. Coal and coffee generate significant economic value, but
reliance on particular commodities can leave the regional economy vulnerable to
changes in global prices.
Developing processing industries
is therefore an important part of a long-term strategy. Agricultural and
natural-resource commodities processed within Aceh could generate higher added
value than products shipped directly as raw materials.
Such development could also
create opportunities for local businesses, increase demand for workers, and
broaden the province’s economic base.
Port Infrastructure Becomes a
Priority
The researchers recommend
modernizing local port infrastructure to reduce logistics leakage and retain
more export value within Aceh.
They also recommend shifting
government expenditure away from general operational spending toward capital
investment with a stronger economic impact, particularly infrastructure and
sectors that support agricultural and industrial competitiveness.
The Aceh government is also
encouraged to strengthen performance-based budgeting. Under this approach,
public expenditure would have a clearer connection to increased productivity
and GRDP growth.
The recommendation is
particularly relevant as Aceh enters the final phase of its special autonomy
funding. The study argues that the province needs to develop more independent
sources of economic growth rather than relying heavily on fiscal transfers.
Exports and Government
Spending Need to Work Together
The study does not conclude that
exports or government spending alone can solve Aceh’s economic challenges.
Instead, both need to be connected with infrastructure, institutional quality,
market connectivity, private investment, and the capacity of local industries
to create added value.
In other words, export growth
will be more beneficial when supported by efficient ports. Government spending
will also have a greater impact when it is directed toward infrastructure and
business ecosystems that increase productivity.
The researchers conclude that
Aceh has significant potential to achieve sustainable economic growth, but this
potential remains constrained by logistics barriers and inefficiencies in
budget implementation. Infrastructure modernization and a shift in fiscal
strategy are among the main measures they recommend.
Author Profiles
Sepni Yanti — University
of Borobudur. First author and corresponding author of the article. Her
research in this study focuses on exports, fiscal policy, and regional economic
growth.
Muh. Halilintar —
University of Borobudur. Second author of the study examining the relationship
between exports, government expenditure, and economic growth in Aceh.
Syaiful — University of
Borobudur. Third author of the study on trade and fiscal policies in support of
regional economic growth.
The source article does not
provide the academic degrees of the individual authors, so no degrees have been
added to maintain factual accuracy.
Research Source
Title: The Role of
Exports and Government Expenditure on Economic Growth in Aceh Province
Authors: Sepni Yanti, Muh.
Halilintar, Syaiful
Affiliation: University of
Borobudur
Journal: International
Journal of Integrative Research (IJIR)
Volume: 4, No. 7
Year: 2026
Pages: 557–566
DOI: https://doi.org/10.59890/ijir.v4i7.232
Journal URL: https://mrymultitechpublisher.my.id/index.php/ijir
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