The Role of Exports and Government Expenditure on Economic Growth in Aceh Province

Abstract

This research investigates the role of exports and government expenditure in driving economic growth in Aceh Province, particularly within the framework of its special autonomy status. Despite the province's significant potential, evidenced by a 13.03% year-on-year growth in exports reaching USD 162.1 million in early 2025—led by coal, coffee, and palm oil—the translation of these activities into regional Gross Regional Domestic Product (GRDP) remains suboptimal. The study employs a qualitative descriptive-analytical approach, utilizing primary data from stakeholder interviews and secondary data from official government reports. Findings reveal that while exports and government spending are theoretically central to economic expansion, their actual impact is hindered by logistical leakages, where 23% to 30% of commodities are shipped through external ports, and by inefficiencies in local budget execution. The research highlights that the special autonomy framework provides a robust legal mandate for development, yet the effectiveness of fiscal injections is often delayed or misaligned with productive output. The study concludes that to achieve sustainable growth, Aceh must prioritize infrastructure modernization to capture export value locally and shift fiscal strategy toward high-impact capital investments. These insights offer a strategic roadmap for policymakers to optimize fiscal and trade policies as the province transitions toward a post-autonomy economic model.