South Kalimantan Sees Economic Growth: President Jokowi

President Jokowi leads a limited cabinet meeting on the Evaluation of the Implementation of National Strategic Projects and Priority Programs of South Kalimantan Province at the Presidential Office, Jakarta, Monday (10/4) (Photo by: Public Relations Division /Jay)

Although South Kalimantan Province has felt the pinch of the declining prices of commodities in the global market, the Province’s economic growth last year improved, rising into 4.38 percent from the previous 3.84 percent in 2015.

The statement was made by President Joko ‘Jokowi’ Widodo in his introductory remarks before a limited cabinet meeting on the Evaluation of the Implementation of National Strategic Projects and Priority Programs of South Kalimantan Province at the Presidential Office, Jakarta, Monday (10/4).

The growth, the President said, is a very positive thing and prices of the Province’s major export commodities such as coal, CPO, and rubber have also increased.

“This is shown by the increase in the contribution of net exports in 2016 experience export contraction of more than 5 percent compared to that in the previous year,” the President said.

President Jokowi went on to say that the Province’s dependency on raw material exports, especially mining commodities, is a vulnerability.

“The data that I received shows that 20.87 percent of South Kalimantan’s economy is from the contribution of mining sector,” the President said.

Therefore, the President wants that the dependency on mining sector has to be gradually reduced and it must be shifted to other primary sectors such as agriculture, forestry, fisheries and processing industries. “What is important is processing industries, so raw materials in the Province can be shifted to processing industries,” the President said.

President Jokowi explained that agricultural, forestry, and fisheries sectors currently contribute 14.91 percent to the Province’s economy, followed by processing industries at 13.98 percent.

Regarding the development of agricultural and plantation sectors, President Jokowi wants the Province to be focused on developing the Province’s primary products and preparing supporting infrastructures.

“Let me remind that the development of agriculture and plantation sectors must be really integrated with processing industries; so they have bigger multiplier effects for the Province’s economy,” the President said.

The development of downstream sector, the President said, is also a must in building South Kalimantan because it will give added values for the Province’s economy and is expected to provide more jobs as well as create equal development in the Province.

Furthermore, to accelerate economic growth and equality in South Kalimantan, President Jokowi hopes that the development of Batu Licin Industrial Zone and Jorong Industrial Zone can be immediately realized. “The development of these two Industrial Zones definitely needs supporting infrastructures such as roads to the zones, electricity, clean water, and most importantly those are integrated with existing seaports,” the President said.

Also attending the meeting were Coordinating Minister for Political, Legal, and Security Affairs Wiranto, Coordinating Minister for the Economy Darmin Nasution, Cabinet Secretary Pramono Anung, Minister of State Secretary Pratikno, Presidential Chief of Staff Teten Masduki, Minister of National Development Planning/Head of the National Development Planning Agency (Bappenas) Bambang Brodjonegoro, Minister of State-owned Enterprises Rini Soemarno, Minister of Home Affairs Tjahjo Kumolo, Minister of Industry Airlangga Hartarto, Minister of Trade Enggartiasto Lukita, Minister of Public Works and Public Housing Basuki Hadimoeljono, Minister of Energy and Mineral Resources Ignasius Jonan, Minister of Health Nila Moeloek, Minister of Research, Technology, and Higher Education M Nasir, Minister of Agrarian and Spatial Planning /Head of the National Land Agency (BPN) Sofyan Djalil, Minister of Education and Culture Muhadjir Effendy, Head of the Investment Coordinating Board (BKPM) Thomas Lembong, Head of Development Finance Comptroller (BPKP) Ardan Adiperdana, and South Kalimantan Governor H. Sahbirin Noor. (DNA/FID/JAY/EN) (EP/YM/Naster)