BI Predicts North Kalimantan's Economy to Grow Six Percent in 2024

Illustration (Photo: Doc. ANTARA)

TANJUNG SELOR - Bank Indonesia predicts that the economy of North Kalimantan Province in 2024 will grow in the range of 5.3 to 6 percent, driven by the positive performance of the main sectors.

"For example, the agricultural sector is predicted to grow positively in line with BMKG forecasts of weather conditions which overall are more conducive compared to 2023," said Head of the Bank Indonesia Representative Office (KPw BI) for North Kalimantan Province, Wahyu Indra Sukma, quoted from ANTARA, Monday, March 18.

According to him, this condition will have an impact on productivity amidst the potential for increased demand for North Kalimantan's main agricultural commodities such as palm oil and fishery products.

In line with this, the Processing Industry business field is also estimated to help drive economic growth in 2024.

CPO derivative products are expected to experience growth in demand in line with El Nino conditions that occur in 2023, as well as potential demand from trading partner countries in connection with the global rate of vegetable oil production which is predicted to slow down.

BI assesses that domestic consumption also contributes to growth in relation to consumption of cooking oil and biofuel as the implementation of the Government's energy transition policy.

Other products such as plywood and pulp are also predicted to grow positively, supported by strong domestic demand in line with the growth of domestic investment and the continued development of IKN in East Kalimantan, as well as several national strategic projects (PSN) in North Kalimantan.

The transportation and warehousing business sector is estimated to be able to encourage economic growth in 2024 as community mobility continues to increase amidst the implementation of simultaneous elections in the first quarter of 2024, regional elections in the third quarter of 2024.

"Apart from that, the continued development of PSN in North Kalimantan has increased demand for transportation services," said Wahyu Indra Sukma.

In line with this, the business fields of Trade, Health Services and Social Activities, and Other Services will also experience a positive impact from a number of major agendas which can be held offline/in person again in 2024.

The construction business sector is estimated to drive growth in 2024, mainly supported by the development of a number of strategic projects.

Such as, the Indonesian Green Industrial Area (KIHI) in Bulungan Regency, National Border Post (PLBN) in Nunukan Regency, Hydroelectric Power Plant (PLTA) in Malinau Regency and Bulungan Regency, and construction of government buildings.