Indonesia’s future capital, Nusantara, began development in East Kalimantan in 2022. A year later, the province’s economic growth surged to 6.22 percent from 4.48 percent in 2022, surpassing the national average of 5.05 percent. By the first quarter of 2024, it reached 7.26 percent, the highest level since 2013.
According to Budi Widihartanto, a representative from Bank Indonesia’s East Kalimantan office, this growth is fueled by strong demand in sectors like mining and construction, further boosted by ongoing capital development. He said that infrastructure projects, such as a new airport and economic hubs around Nusantara, are driving both central and local government spending.
Budi also pointed out that the community’s economic activities are benefiting, particularly through the rise of micro, small, and medium enterprises (MSMEs). In 2023, East Kalimantan’s trade sector grew by 6.85 percent, marking the highest growth since the COVID-19 pandemic.
