East Nusa Tenggara - Economy

Economy

By several economic indicators, the provincial economy is weaker than the Indonesian average with high inflation (15%), unemployment (30%) and interest rates (22-24%), making it one of the poorest province in Indonesia.

Agriculture

A main part of the economic activity in the province is subsistence agriculture. Important local crops include corn and some smallholder plantation crops such as coffee. In some places such as Sumba, the lontar palm (Borassus flabellifer) dominates local agricultural activities and is a very important part of the local economy. In these areas, the lontar palm provides timber and thatching as well as food in the form of fruits, and palm sugar which is obtained by tapping the fruit stems. The sugary sap can be used to make alcoholic drinks. In other parts of the province such as West Manggarai, the sugar palm (Arenga pinnata) has a useful role in the local economy. The degree of mechanisation in agriculture is low. Large animals (buffaloes, horses) are widely used throughout the province.

Natural resource sector

A significant part of the economic activity in the province involves the development of natural resources, including forestry and numerous local mining ventures. Some of the activity is controversial, however, because regulatory controls over the use of natural resources are not always effective. There have been disputes in some areas over the use of land. Manganese mining, for example, in the central part of the island of Timor has been controversial. Nearby, in the Mount Mutis area to the east of Kupang, amongst some local groups there is concern at the way local resources are being developed by mining companies.

There is also significant activity in the informal mining sector. Across the province, villagers will sometimes exploit localised opportunities to undertake unregulated mining or mineral-based projects. In West Timor, for example, in the South Central Timor Regency, villagers living near the south coast in the Kolbano area south of the town of Soe sometimes collect coloured stones which, in turn, are sold to companies which export the stones to countries such as Australia, China, Malaysia, Singapore, and elsewhere.

Tourism

The provincial government aims to promote tourism. There are various interesting locations in different parts of the province. The basic infrastructure to support the tourist sector (such as transport facilities, accommodation, and adequate and reliable information) needs to be strengthened but several main features of the tourist sector in the province include:

• Komodo Island with the well-known komodo dragon
• Kelimutu volcano on Flores which contains three striking crater lakes of varying colours
• Mount Mutis to the east of Kupang, the highest point in the province and an area known for hiking and bird-watching
• Semana Santa in Larantuka
• Nihiwatu Beach in Sumba Island
• Alor Dive in Alor Island
• Nemberalla Beach in Rote Ndao
• Pink Beach in Padar Island
• Taman 17 in Riung Island

Malaria is a significant problem in some parts of the province. Tourists should take appropriate cautionary measures.