West Sumatra is developing a natural dyeing for textile industry with an investment worth IDR189.15 billion. Kicking off in 2021, the textile sector will be an export opportunity of the province to first-world countries such as the United States, Canada, Australia, New Zealand and Japan.
West Sumatra has an area of 42,013 square kilometers. In 2020, its population was recorded at 5.534 million people. The province, which capital is Padang, has been famous for its culinary, especially beef rendang. CNN International’s Reader’s picks list even named rendang as one of its 50 best cuisine in the world.
The province also boasts sports tourism such as Tour de Singkarak cycling race, Mentawai International Pro Surf Competition and Event Fly for Fun paragliding competition in Lake Maninjau.
Shrubs of significant value
West Sumatra develops its textile natural dyeing industry with an investment worth IDR189.15 billion, an internal rate of return (IRR) of 15.66%, a net present value of IDR48.83 billion and a payback period of 6.42 years.
The province boasts a good sum of natural resources that could be used to develop its economy. One of which is the Gambir shrub (Uncaria gambir Roxb). As a plantation commodity, 80% of the shrub in Indonesia comes from this province. The shrub becomes a leading commodity in producing natural dyeing from its chemical called tannins.
The Gambir shrub as an industrial raw material for natural dyeing gives a high potential for the economic development of the region. The natural dyeing will enable West Sumatra to export the commodity to Europe and the US as both continents are undergoing a go-green campaign. The product could be absorbed into these markets once the industry is established and constructed in West Sumatra.
The leaves and twigs can be manufactured into a chemical compound called Catechins, which are an ingredient for cosmetic industry and pharmacy.
The West Sumatra administration offers incentives for investors such as import facility for entrepreneurs in the industrial sector that manufactures goods/services as well as tax deduction if the industry is involved in vocational education programs and research and development activities to generate innovation.
Challenges for the province
West Sumatra is one of several provinces in Indonesia that faces the ocean and interacts directly with the plates and Ring of Fire. It prompts the province to be prone to earthquakes and tsunamis.
The Meteorology, Climatology and Geophysics Agency (BMKG) recorded the latest earthquakes took place on February 25, 2022, in Pasaman regency, with magnitudes of 5.2 Richter scale and 6.2 Richter scale, respectively.
“Historically, West Sumatra was hit by earthquakes in the past such as in 1822, 1926 with a magnitude of 7 Richter scale and in 1971 with a magnitude of 6.1 Richter scale,” Daryono, the BMKG’s Coordinator of the Earthquake and Tsunami Mitigation, wrote on his twitter account on February 25, 2022.
West Sumatra is also prone to terrorism and radicalism. According to kompas.com on April 3, 2022, the antiterror squad Special Detachment 88 (Densus 88) had arrested 16 terror suspects from the province. These suspects are affiliated with the Indonesian Islamic State (NII).
West Sumatra Police Chief Insp. Gen. Teddy Minahasa said the police listed 1,157 NII members. Of that figure, 1,135 claimed they would regroup from NII and pledge to be loyal to Indonesia, Minahasa said, as quoted by CNN Indonesia.
