Primary sector still played a major role in local economics.
Palangka Raya, 16 February 2024
During 2023, total direct investment realization in Central Kalimantan was 19.10 trillion rupiah. Such number exceeded the target of investment realization set by the Ministry of Investment/BKPM for the government of Central Kalimantan Province, which was 16.09 trillion rupiah.
The investment realization of 19.10 trillion rupiah consisted of realization of PMA (Foreign Direct Investment) for US$697,636,700.00 or IDR10,325,012,136,800.80 (exchange rate US$1 ~ IDR14,800.00) and PMDN (Domestic Direct Investment) for Rp8,779,502,700,000.00.
Cumulatively, the primary sector was the biggest contributor of investment realization. Food Crop, Plantation, and Livestock sub sector as well as Mining sub sector respectively had the biggest contribution in investment realization of 2023.
Head of Investment and One Stop Service (PMPTSP) Agency of Central Kalimantan Province, Sutoyo, S.STP., M.A.P. elaborated, in the secondary sector, the Food Industry subsector was potential to become a new leading sector for Central Kalimantan. “At least, for the last three years, the Food Industry subsector is included in the top three of investment realization in the Province, both PMA and PMDN,” he explained.
Data, which was processed by the Agency’s Data Processing Function, showed that the primary sector dominated investment realization and also created more employment in the last five years.
In terms of regional, the highest realization of foreign direct investment was consecutively in Kotawaringin Timur, Kotawaringin Barat, and Murung Raya Regency. Meanwhile, Kapuas, Kotawaringin Timur, and Barito Utara were the regencies with the highest realization of domestic direct investment in Central Kalimantan.
According to Sutoyo, of the abovementioned data, there were at least two initial conclusions. First, although dominated by the primary sector, the Food Industry subsector was potential to become a new local leading sector. Second, cumulatively, investment realization in Central Kalimantan tend to be distributed fairly in the west and east region. Nevertheless, it needed some improvement in the mid region.
Data on investment realization was collected from the Investment Report (LKPM) that was submitted by all business actors once every three months. LKPM submission was one of obligations to be fulfilled by business actors as mandated in Law Number 25 of 2007 regarding Investment. LKPM contained information on the progress of investment realization and any issues faced by business actors.
Sutoyo advised all business actors in Central Kalimantan, both foreign and domestic, to regularly submit LKPM online through oss.go.id. For business actors in construction stage and micro enterprises, LKPM was obliged to be submitted once in every six months. “PMPTSP Agency of Province and of regency/city in Central Kalimantan is always ready to facilitate all business actors that faces any difficulties in completing LKPM,” Sutoyo concluded. (****)