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🇮🇩 Indonesia /Economy & Trade

North Kalimantan's Economy Boosted by Surge in Electricity Sector

From Republika · () Indonesian

Translated from Indonesian, summarized and contextualized by DistantNews.

At a glance

News Official statement Outcome reported
  • North Kalimantan's economy grew 4.96% year-on-year in Q2 2026, driven by a surge in electricity and gas supply.
  • Increased investment, measured by Gross Fixed Capital Formation (PMTB), also significantly contributed to the growth.
  • The province's Gross Regional Domestic Product (PDRB) reached Rp42.47 trillion at current prices.

North Kalimantan's economy experienced a robust year-on-year growth of 4.96% in the second quarter of 2026, primarily fueled by a dramatic increase in the electricity and gas supply sector. This surge, alongside a notable rise in investment, propelled the province's economic expansion, according to data from the Central Statistics Agency (BPS) of North Kalimantan.

The electricity and gas supply sector became the business field with the highest growth, reaching 190.26 percent compared to the same period last year.

— MustaqimThe head of BPS North Kalimantan explains the primary driver of the province's economic growth in Q2 2026.

The electricity and gas sector emerged as the star performer, recording an astounding 190.26% growth compared to the same period last year. This significant expansion indicates a heightened level of construction activity and strengthening energy infrastructure within the province. Concurrently, investment, as reflected in Gross Fixed Capital Formation (PMTB), grew by 20.18%, signaling continued confidence and economic activity in the region.

Mustaqim, head of BPS North Kalimantan, highlighted that the robust performance of the electricity sector not only supports business activities but also bolsters various investment projects. The increase in investment further demonstrates the positive momentum of the economic landscape in North Kalimantan, contributing to production, infrastructure development, and the creation of new economic opportunities.

From the expenditure side, investment or Gross Fixed Capital Formation (PMTB) was the largest contributor with a growth of 20.18 percent.

— MustaqimThe head of BPS North Kalimantan details the contribution of investment to the province's economic expansion.

On a quarter-to-quarter basis, North Kalimantan's economy also showed positive momentum, growing by 2.53%. This quarterly expansion was again led by the electricity and gas sector, which saw a 182.66% increase, and investment growth of 27.19%. Cumulatively, the province's economy grew by 5.09% in the first half of 2026 compared to the same period in the previous year, indicating sustained economic activity throughout the first six months of the year. The Gross Regional Domestic Product (PDRB) of North Kalimantan in Q2 2026 was valued at Rp42.47 trillion at current prices, and Rp19.79 trillion at constant 2010 prices.

This growth shows that the regional economy remains active amidst various economic dynamics.

— MustaqimThe head of BPS North Kalimantan comments on the overall economic performance of the province.
DistantNews Editorial

Originally published by Republika in Indonesian. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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