East Kalimantan's (Kaltim) economy relies heavily on commodity exports, such as coal and palm oil, which contribute more than 40% to the local Gross Regional Domestic Product (GRDP). Although this sector remains a mainstay of regional economic growth, global protectionist pressures, such as the imposition of high tariffs by the United States and the shift in energy demand toward renewable sources in major economies like China and India, have begun to depress sales volumes of East Kalimantan's key commodities.
In response to these challenges, the regional government and businesses are addressing over-reliance on oil and gas and coal by strengthening exports of non-mining products. Several strategic commodities, such as crude palm oil (CPO), fertilisers, chemicals, horticultural products, and MSME products, are being promoted internationally through facilities like the Balikpapan Export Centre. Furthermore, international trade agreements such as ACFTA and IEPEA are expected to open export opportunities to new markets. However, this transformation is not easy: downstreaming, logistical efficiency, and the opening of global distribution channels are needed for East Kalimantan to maintain economic stability and continue to drive long-term export growth.
