In the second quarter of 2024, East Kalimantan (Kaltim) experienced an economic growth of 5.85% year on year (yoy), surpassing the regional Kalimantan and national growth rates. Investment in Kaltim was also strong, with a realization of approximately IDR 33.5 trillion. Budi Widihartanto, Head of Bank Indonesia (BI) Representative Office in Kaltim, attributed this robust economic growth to the performance of the construction sector, driven by the ongoing development of the new capital city, Ibu Kota Nusantara (IKN), and the growth in investments boosting Kaltim’s economy from the expenditure side. However, the mining and export sectors slightly slowed down due to reduced coal production caused by high rainfall and decreased demand from China.
In line with a strong economy, investment in Kaltim is also promising. By the first half of 2024, domestic investment amounted to IDR 24.4 trillion, ranking 5th nationally. Foreign direct investment (FDI) reached USD 589 million or approximately IDR 9.18 trillion, placing Kaltim 15th nationally. During the 2024 Respondent Meeting, Budi noted that economic growth in the region was accompanied by controlled inflation. In September 2024, inflation was highest in Penajam Paser Utara at 0.23% month to month (mtm).
