North Kalimantan Governor Orders Businesses to Prioritize Local Vendors and Products

North Kalimantan Governor Zainal A. Paliwang has ordered businesses across the province to give priority to local suppliers, vehicle-rental services and vendors. The instruction appears in Circular No. 100.3.4.1/90/BAPENDA/GUB of 2026, issued at the end of July.

“I have issued a circular to prioritize the use of local vendors, vehicle-rental services and raw-material suppliers for all businesses operating in North Kalimantan,” Zainal said in Tanjung Selor. Providers must still meet the applicable technical requirements and regulations.

The policy also directs agencies and related parties to favor vehicles carrying North Kalimantan, or KU, license plates. The governor said this could support compliance with motor-vehicle tax payments and increase provincial revenue. Companies are also being encouraged to work with local micro, small and medium enterprises as partners, suppliers, subcontractors and service providers.

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I have issued a circular to prioritize the use of local vendors, vehicle-rental services and raw-material suppliers for all businesses operating in North Kalimantan.

The instruction applies beyond government institutions. Leaders of state-owned, regionally owned and private companies, as well as foreign and domestic investment firms with economic activities or concessions in North Kalimantan, are expected to comply. They have also been asked to submit information about the vendors and suppliers they use to the relevant agencies for monitoring and evaluation.

“Through this circular, the North Kalimantan provincial government hopes government spending and business activity in the region will not only meet development needs, but also drive the circulation of the local economy,” Zainal said. Provincial data showed locally generated revenue had reached 564.48 billion rupiah, or 54.8% of the annual 1.02 trillion rupiah target, by Aug. 30, 2026.

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Through this circular, the North Kalimantan provincial government hopes government spending and business activity in the region will not only meet development needs, but also drive the circulation of the local economy.