The East Kalimantan administration is looking to stimulate development in poorer regencies in order
to narrow the economic gap, the governor says.
“During a recent visit to the northern parts of the province, a regional working team listed a number of points needed for development, so that by 2013 equal development could be achieved in the remote areas, including poverty-stricken regencies,” said Governor Awang Faroek recently.
“Infrastructure development will include expanding and repairing the Trans-Kalimantan Highway, which central government has prioritized.”
The province is split into 10 regencies (Nunukan, Malinau, West Kutai, Bulungan, Berau, East Kutai, Kutai Kartanegara, North Penajam Paser, Pasir and Tana Tidung) and four muncipalities (Balikpapan, Samarinda, Bontang and Tarakan).
Malinau is has the highest percentage of underprivileged people, while Kutai Kartanegara is home to the highest number of poor people, despite making the largest contribution to Gross Domestic Regional Product (PDRB) in the province.
Compared with Balikpapan, which holds the lowest percentage of poor people at 3.49, Malinau’s poverty rate is 18.24 percent while Kutai Kartanegara in the regency has the highest rate at 30.26 percent, based on the number of families.
There are 286,400 underprivileged people (equal to 193,513 families) in the province, or 9.51 percent of the 3,164,800 population.
They live below the poverty line with just Rp 261,185 (US$26) monthly. East Kalimantan has a growth rate of 2.27 percent.
Governor Awang disclosed the province’s 10 points of development, one of which is to ground its economy in renewable resources.
“East Kalimantan is still facing problems on infrastructure and meeting the basic needs of the people. In the future, development will prioritize renewable resources, such as agriculture, plantation, cottage industries and small and medium-scale enterprises,” he said.
“We can no longer depend on non-renewable resources, such as mining and oil and gas because one day they will be depleted. East Kalimantan must soon prepare its ‘economic locomotive’ based on renewable resources, that is agrobusiness.”
Awang added his vision for the next three years was to transform East Kalimantan into a prime agribusiness and energy center, as well as a prosperous and just society.
This year Awang has announced the construction of a freeway and railway line connecting West and East Kutai, and the Maloy Port in East Kutai, which will later become a container hub in Asia.
