East Kalimantan Economic Transformation Strategy

Balikpapan, 27/8/14. The importance of the economic transformation strategy/economic shift based on unrenewable resources to Renewable Resources only Realizing the problem faced by the Provincial Government. East Kalimantan conducted an economic transformation policy based on renewable natural resources, where in 2009 - 2013 was the laying of the basis of socioeconomic transformation, while the 2014 - 2018 period was when we applied development patterns by strengthening competitiveness, added value based on sustainable local resources. The application of the scenario of green economic growth or green economy or low carbon development scenario is the right choice for East Kalimantan. Increasing the ability of human capital that controls science and technology is very necessary to enter the innovation-driven economies stage. This requires social and economic transformation.

Economic transformation/economic shift based on unrenewable resources to Renewable Resources can only be realized if there is a balance between the economic, environmental and social pillars in development and economic planning that shapes the green economy. It is hoped that changes from the current economy to the green economy or low -carbon economy will realize a better condition of society and social justice reduce environmental risks and ecological damage.

The application of economic transformation is carried out by using industrial development strategies derived from the plantation, food crops and mining sectors as a more balanced direction of economic transformation. Through this strategy it is hoped that in 2030 the industrial sector will become the main economic basis with a proportion of 42%, the trade and service sector reaches 17%and the agricultural sector reaches a proportion of 10%. This economic structure is expected to produce high and stable economic growth and can absorb higher jobs.

The objectives and objectives of the above economic transformation must be carried out in stages and consistently and require multi -stakeholder support and support from all stakeholder layers.

There are five stages in the economic transformation that has been and will be carried out, namely, the initiation period (2009-2013); Capacity Development Period (2013-2015); Period of Increasing Value (2015-2018), Industrial Development Period (2018-2020 and Economic Development Period-Innovation (2020-2030). Thus the 2013-2018 East Kalimantan RPJMD period is in the two stages of the economic transformation mentioned above.

Besides the many success that has been achieved in economic development, but on the other hand East Kalimantan produces the fourth largest greenhouse gas emissions from 34 provinces in Indonesia, or 150,566,160 tons of CO2/year. The greenhouse gas emissions are mainly from the land -based sector. And in it there is an emission of deforestation of 69,988,875 tons of CO2/year. Of course this is a big challenge for East Kalimantan to harmonize the construction and decrease of greenhouse gas emissions.

In achieving economic growth and decreased emissions that are expected to work together, support is needed from various stakeholders, especially from the district/city government.

Therefore we really hope that the pattern and mechanism for integrating the issue of climate change carried out by the Provincial Government of East Kalimantan can be followed by all district/city governments, this is to ensure the consistency of commitment and sustainability of the implementation of program activities along with the support of funding. The mainstreaming pattern in the RPJMD aims to ensure that the program/activity of lowering emissions is also integrated in the SKPD programs because it is mandatory to be accommodated in the SKPD Rentra.

Provincial Government through programs and activities that have been set out in the 2013-2018 RPJMD are committed to helping and facilitating the city government to go through the process of mainstreaming climate change in district /city development planning documents.
To accelerate and ensure targets of reducing support from development partners are also expected to be sustainable. The Provincial Government of East Kalimantan expects concrete and measurable cooperation and synergy between development partners and NGOs that have worked in East Kalimantan in the implementation of emission declines.

The scope of cooperation that we can do includes:
1. Funding for the implementation of green economy scenarios.
2. Support in policy making and regulatory development. (regulations, incentive and disincentive mechanisms)
3. Development and strengthening of data and information quality (baseline, analysis of data and information gaps and data sharing mechanisms).
4. Understanding between stakeholders (socialization, improvement of coordination) 5. Institution capacity building