BI Optimis IKN Will Boost East Kalimantan's Economic Growth

Bank Indonesia Representative for East Kalimantan Province (BI Kaltim) is optimistic that legislative and judicial projects in the Capital of Nusantara (IKN) such as the construction of the DPR/MPR building, the Supreme Court, and the Constitutional Court, will be able to boost the economic growth of Kaltim.

East Kalimantan's economic growth in 2026 is estimated to grow by around 5 percent, one of which is from basic infrastructure to strengthening the strategic role as the political capital and national digital innovation center in the IKN.

"In addition to the construction of a number of projects in IKN, other activities that are capable of boosting the economic growth of East Kalimantan in 2026 include the processing industry and the entry of new investments in various strategic sectors," said Head of BI Kaltim Budi Widihartanto as reported by ANTARA, Saturday, January 24.

At IKN, the construction of phase II has begun along with financial support, namely a pure private investment of Rp. 66.5 trillion, then the Government and Business Partnership (KPBU) scheme of Rp. 158.73 trillion.

According to Budi, although global pressures such as American policies related to politics are still overshadowing economic developments, the economic foundation of East Kalimantan is still strong in maintaining the momentum of growth.

"The processing industry sector is projected to be the backbone of the East Kalimantan economic growth. One of them comes from the addition of oil and gas refinery capacity of around 50 thousand barrels per day which is scheduled to operate in the third quarter of 2026," he said.

There is also the development of gas exploration which started since the end of 2025 is expected to begin to have a real impact on increasing the production of derivative industries in 2026.

He said this activity would continue the positive trend in the previous year, namely the increase in industrial activity in line with the optimization of oil and gas refineries and the addition of processing facilities, including new smelters that have begun to penetrate the export market.

Other activities that will be able to boost the economy of East Kalimantan this year are private investment in the Special Economic Zone (KEK), then the agricultural sector with the target of optimizing Kaltim land increased to 3,000 hectares, along with the continuation of CSR programs and strengthening the region's food security.

However, he still reminded of challenges from the external side, such as global coal demand, especially from China which is estimated to decrease by around 1.49 percent (yoy) as renewable energy transitions accelerate.

He said that the slowing global economy and adjustments to development budgets were also factors that needed to be anticipated, so that from this anticipation a new model would be found in the development of regional economies such as strengthening downstream, tourism, and creative economy.