Kaltara prepares economic transformation, border becomes development priority

TANJUNG SELOR - The North Kalimantan Provincial Government (Pemprov) has begun directing regional development policies on economic transformation based on the downstreaming of natural resources and strengthening border area development.

Head of the Regional Planning, Research, and Innovation Agency (Bapprida) of North Maluku, Bertius said this step was considered important to strengthen the regional economic structure which has so far been based on the primary sector.

"This also improves people's welfare through economic transformation which is the main strategy of the local government to create higher quality economic growth, and not just rely on the exploitation of raw natural resources," said Bertius, when explaining the direction of regional development policies in the Tematik Musrenbang of the Mentari Kaltara Forum, Monday, March 9.

"We want to encourage a more inclusive, value-added, and sustainable economy. We must be able to create added value through downstream," he continued.

According to him, the policy is also aimed at strengthening Kaltara's position as the front door of the Unitary State of the Republic of Indonesia (NKRI), especially through the acceleration of border area development which has so far faced various limitations in infrastructure and basic services.

"Data on regional macro indicators show that North Kalimantan's economic growth in 2024 is 4.57 percent and slightly decreased to 4.56 percent in 2025. On the other hand, the Gross Regional Domestic Product (PDRB) per capita has increased from Rp. 198.43 million to Rp. 208.21 million," he said.

Bertius explained that the regional government targets economic growth to increase to 5.35 percent in 2026 and reach 5.50 percent in 2027 through the strengthening of investment and the development of the region's flagship sectors.

"We must strengthen the flagship sectors that are capable of providing great added value for the region, while also opening up employment opportunities and improving people's welfare," he said.

He added that in addition to encouraging downstream processing in the marine, plantation, and energy sectors, local governments also link these policies with the development of green and blue economies.

"This strategy includes strengthening the marine product processing industry, protecting coastal ecosystems, and developing renewable energy," he said.

On the other hand, border area development remains an important agenda for local governments. This area is considered to have a strategic position both in terms of geopolitics and economic potential, but still needs acceleration of development so as not to lag behind other regions.

"Currently, about 22.06 percent of villages in border areas have an advanced and independent status. The government targets this figure to increase to 24.02 percent by 2027. As an area that borders directly with other countries, we must seriously develop the border area," he said.