Central Kalimantan's Economy Outperforms National Growth

Central Kalimantan's (Kalteng) economy grew by 6.37 percent in 2016 compared to the previous year. This figure is above the national economic growth, which was only 5.02 percent. Kalteng's economy has consistently grown above the national average. In 2017, the province, whose capital city is Palangka Raya, targeted economic growth of 7.5 percent, higher than Indonesia's target of 5.1 percent.

The issue of relocating the capital city from Jakarta has resurfaced after the Minister of National Development Planning/Head of the National Development Planning Agency, Bambang Brodjonegoro, stated that the government would review the relocation of the capital from Jakarta. Kalimantan is favored due to its low earthquake risk. Currently, Palangka Raya is emerging as a potential candidate for the new national capital.

Central Kalimantan's Gross Regional Domestic Product (GRDP) at current prices reached Rp 112.44 trillion in 2016, up from Rp 110.22 trillion in the previous year. The agriculture, forestry, and fisheries sector was the largest contributor to Central Kalimantan's economy, accounting for 21.9 percent or approximately Rp 24.67 trillion. This was followed by the manufacturing industry at 16.33 percent or approximately Rp 18.36 trillion, and wholesale and retail trade at 11.68 percent or approximately Rp 11.13 trillion.