IKN Project Boon: Penajam Paser Utara's Economy Soars in 2023

The Nusantara Capital City (IKN) development project has significantly boosted the economy of Penajam Paser Utara (PPU) Regency, East Kalimantan Province.

According to data from the Central Statistics Agency (BPS), in 2023, PPU's regional gross domestic product (RGDP) at constant prices reached Rp9.65 trillion, a surge of 29.85% year-on-year (yoy).

This economic growth is the highest in at least the last decade, as shown in the graph. In 2023, PPU also recorded the highest economic growth compared to other regencies/cities in East Kalimantan.

Here's the RGDP growth of regencies/cities in East Kalimantan in 2023:

* Penajam Paser Utara (PPU): 29.85% (yoy)
* Samarinda: 8.62% (yoy)
* Kutai Timur: 7.71% (yoy)
* Balikpapan: 6.49% (yoy)
* Kutai Barat: 5.82% (yoy)
* Berau: 5.44% (yoy)
* Kutai Kartanegara: 5.13% (yoy)
* Bontang: 4.16% (yoy)
* Mahakam Ulu: 2.8% (yoy)
* Paser: 1.38% (yoy)

Measured by RGDP at current prices, PPU's economic value in 2023 reached Rp17.24 trillion, contributing approximately 2% to the economy of East Kalimantan Province.

In 2023, the construction sector was the main driver of PPU's soaring economy, contributing 24.95% or almost a quarter of the regency's RGDP, and experiencing a growth rate of 110.42% (yoy).

Here's a breakdown of PPU's RGDP growth by economic sector in 2023:

* Construction: 110.42% (yoy)
* Electricity and Gas Supply: 15.97% (yoy)
* Mining and Quarrying: 13.93% (yoy)
* Financial Services: 13.27% (yoy)
* Water Supply, Waste Management: 12.33% (yoy)
* Transportation and Warehousing: 9.68% (yoy)
* Accommodation and Food Services: 9.14% (yoy)
* Government Administration, Defense: 6.75% (yoy)
* Health and Social Activities: 6.65% (yoy)
* Business Services: 6.56% (yoy)
* Wholesale and Retail Trade: 6.23% (yoy)
* Other Services: 5.68% (yoy)
* Information and Communication: 4.47% (yoy)
* Education Services: 3.66% (yoy)
* Real Estate: 1.97% (yoy)
* Agriculture, Forestry, and Fisheries: 0.86% (yoy)
* Manufacturing Industry: 0.17% (yoy)