This article has been translated by PwC Indonesia as part of our Indonesia Infrastructure News Service. PwC Indonesia has not checked the accuracy of, and accepts no responsibility for the content.
Investor Daily - IKN dongkrak pertumbuhan ekonomi Kalimantan
6 February 2024
Jakarta, ID – Statistics Indonesia (BPS) reported that the economic growth of Kalimantan increased by 5.43%. One of the factors that boosted the economic growth is the development of Nusantara Capital City (IKN).
“One of the catalysts for economic growth in Kalimantan, especially East Kalimantan, is the construction [of IKN]. The growth reaches 15.82%,” Acting BPS Head Amalia Adininggar Widyasanti at BPS’ press conference in Jakarta on Monday (5/2/2024).
In addition to construction activities, the economy in East Kalimantan also experienced substantial growth, primarily attributed to the significant increase in Gross Fixed Capital Formation (PMTB) resulting from the infrastructure development in IKN. Due to the positive contributions from both sectors, East Kalimantan achieved the highest economic growth in Kalimantan, registering an impressive 3.24%.
In contrast, other provinces showed lower economic growth rates, with South Kalimantan at 0.71%, West Kalimantan at 0.68%, Central Kalimantan at 0.46%, and North Kalimantan at 0.34%. The primary contributors to growth in Kalimantan are mining and excavation, construction, and the processing industry.
Even though it is one of the islands with the highest economic growth, the contribution of Kalimantan to the gross domestic product (GDP) is only at 8.49%. Meanwhile, Java is still the dominant contributor to the GDP at 57.05%.
Following that, Sumatra contributes 12.01% to the GDP with an economic growth of 4.69% in 2023. Sulawesi contributes 7.10% to the GDP with an impressive economic growth of 6.37%. Bali and Nusa Tenggara collectively contribute 2.77% to the GDP, exhibiting an economic growth of 4.00%. Maluku and Papua contribute 2.58% to the GDP, with a notable economic growth of 6.94%.
