In Tanjung Selor, Bank Indonesia (BI) forecasts the economy of North Kalimantan Province to grow within the range of 5.3-6% in 2024, driven by the positive performance of key sectors. According to Wahyu Indra Sukma, Head of the Representative Office of Bank Indonesia (KPw BI) for North Kalimantan Province, favorable weather conditions projected by BMKG are expected to positively impact agricultural sectors, particularly the growth of main commodities like palm oil and fisheries. Consequently, the Manufacturing Industry sector is anticipated to contribute to the economic growth in 2024. Derivative products of Crude Palm Oil (CPO) are expected to witness increased demand, influenced by the El Nino conditions in 2023 and potential demand from trading partner countries due to the projected slowdown in global vegetable oil production. BI assesses that domestic consumption, particularly of cooking oil and biofuels, also plays a role in driving growth, aligning with the government's energy transition policy.
Additionally, products such as plywood and pulp are expected to grow positively, driven by strong domestic demand and continued investment growth domestically, along with the ongoing development of the National Strategic Projects (PSN) in North Kalimantan. In terms of economic drivers for 2024, the Transportation and Warehousing sectors are projected to stimulate growth, given the increasing mobility of the population amid the simultaneous implementation of the General Elections in the first quarter of 2024 and Regional Elections in the third quarter of 2024. Furthermore, the continuation of PSN development in North Kalimantan is expected to increase demand for transportation services, as stated by Wahyu Indra Sukma. Consequently, the Trade, Health and Social Services, and Other Services sectors will also experience positive impacts from significant events that can be held in-person in 2024. The Construction sector is forecasted to boost growth in 2024, supported by the development of several strategic projects such as the Indonesian Green Industrial Zone (KIHI) in Bulungan Regency, the Border Crossing Point (PLBN) in Nunukan Regency, Hydropower Plants (PLTA) in Malinau and Bulungan Regencies, and government building construction.
