Improving the Economy of the People of East Kalimantan

Samarinda, 23/3/15. East Kalimantan Province's development program must focus on the leading sectors of downstream areas so that they can have an effect on improving the community's economy so that it can increase business opportunities or create jobs.

This was conveyed by the Assistant for Economics and Development of the Regional Secretariat of East Kalimantan Province, Ir.H. Muhammad Sa'Bani, M.Si representing Plt. The Regional Secretary of East Kalimantan Province when delivering remarks and directions as well as opening the 2015 East Kalimantan Province SKPD Forum in the context of preparing the 2016 East Kalimantan Province RKPD in the Strategic Plan meeting room on the third floor of the East Kalimantan Province Bappeda, Jl. Kusuma Bangsa Number 2 Samarinda.

The implementation of the 2015 East Kalimantan SKPD forum was attended by participants from all SKPDs within the East Kalimantan Provincial Government and Regency/City Bappeda throughout East Kalimantan totaling approximately 300 participants.

In delivering his instructions, Muhammad Sa'Bani, Assistant for Economics and Development at the Regional Secretariat of East Kalimantan Province, said that this SKPD forum is one of the stages in preparing the RKPD, the aim of which is to align the 2016 SKPD priority programs/activities with Regency/City proposals from the results of the Musrenbang, which will be accommodated in the Provincial SKPD Renja.

The 2016 East Kalimantan Province Regional Development Work Plan (RKPD) is the third stage of the implementation of the 2013 - 2018 East Kalimantan Province Regional Medium Term Development Plan (RPJMD). Meanwhile, the RPJMD for this period is the implementation of the third stage of the 2005 - 2025 East Kalimantan Province Regional Long Term Development Plan (RPJPD).

This year's SKPD forum is an important and strategic forum when the 2015-2009 RPJMN has been established in accordance with Presidential Decree no. 5 of 2015 which is a development policy direction, how this nation will be carried out in the next five years to realize the VISION OF INDONESIA 2018, namely the realization of a Sovereign, Independent and Individualized Indonesia based on Mutual Cooperation. And of course it is an important guide for us, especially this Forum, in carrying out synergy and harmonization in the 2016 development priority program.

We are grateful that the 2013-2018 East Kalimantan development policy is in line with the 2015-2019 RPJMN development policy, which focuses on 6 leading sectors, namely the food, energy, maritime, tourism, infrastructure and human resources sectors.

On this occasion, in preparing policy directions and priority development programs for 2016, it is important for us to base on what we have achieved in 2014, while we still don't know about 2015 because it is still ongoing. We are proud that based on the results of the development performance evaluation in 2014 as the first year of implementation of the 2013-2018 RPJMD, we have made many achievements, we can see this from the GRDP which reached IDR 401.77 trillion with an economic growth rate of 2.85% above 2013 which was only 1.45%, the unemployment rate decreased by 7.74%, poverty 6.42% and the HDI of 77.33. fourth position nationally.

The issue of the main substance of East Kalimantan's development is still a tough homework assignment for us. We see that our export performance also continues to increase, reaching Rp. 458.59 trillion, but 94.58 percent contribution from coal, natural gas, crude oil and oil and gas industry products.

Government policy to process and purify minerals before export, in order to increase added value through Law No. 4 of 2009 and followed by PP No. 1 of 2014 is still an empty message. Also look at East Kalimantan's GDP per capita Rp. 119.47 million which is the highest nationally, but per capita income is only Rp. 47.52 million which shows that almost 60% of the GRDP produced by Bumi Kaltim is NOT ENJOYED by the residents of East Kalimantan.

Looking at and studying the history of East Kalimantan's economy, which relies heavily on non-renewable resources, we have obtained several predictions of the impact if East Kalimantan does not immediately change gears from the current main base of economic activity, namely the mining sector, whose contribution is around 45% of GRDP.

What the East Kalimantan Provincial Government has done is take firm steps, namely by issuing an Economic Transformation policy from one that was initially based on an economic sector that was not can be renewed into economic sectors that can be renewed through the development of the agro-industrial, industrial and creative economic sectors. This transformation effort is carried out with the concept of green economic growth

Therefore, it is very appropriate for this Forum to raise a THEME which is also the 2016 RKPD THEME as mandated by the 2013-2018 RPJMD, namely: INCREASING THE ADDED VALUE OF REGIONAL LEADING PRODUCTS AND IMPROVING INTRA AND INTER-REGIONAL CONNECTIVITY". This also directs us that there are consequences and demands for us to make ECONOMIC SECTOR selections. SUPERIOR which has economies of scale, which can make the regional economy grow and can provide a broad multiplier effect for expanding employment opportunities.

In order for the development of superior regional economic sectors to be able to spur economic growth, it is necessary to develop industrial areas using an industrial cluster approach. In accordance with the 2013-2018 RPJMD target, we can realize at least 8 Industrial Areas evenly spread across 10 Regencies/Cities throughout East Kalimantan as mandated by PERDA 17 of 2018, namely: (1) Paser Agricultural Industrial Area and PPU, (2) Kariangau Balikpapan & Buluminung PPU Industrial Area, (3) Samarinda Service and Trade Industrial Area, (4) Agricultural Industrial Area Kukar and Kubar, (5) Bontang Petrochemical Industrial Area, (6) Maloy Kutim International Port and Industrial Area, (7) Derawan Tourism Industrial Area, Berau and (8) Border Strategic Area, Mahulu. Every district/city of course also has strategic industrial areas, but at least in the context of regional development in East Kalimantan, we can focus more on developing these priority industrial areas, while making it easier for us to measure the success criteria.

The industrial sector is the main component of regional economic development, which has the potential to make a big contribution to the regional economy through added value, employment and foreign exchange, but is also able to make a big contribution to the nation's cultural transformation towards the modernization of community life which supports the formation of regional competitiveness.

In an effort to create a priority industrial area, support is needed to accelerate infrastructure development, including road infrastructure, ports and airports using a connectivity - intra-modal approach so that it can reduce transportation costs which are currently still a burden to encourage regional economic competitiveness. Apart from that, the problems of electricity, clean water and utilities required by industrial areas and residential communities also need serious attention. However, licensing issues also need to be reformed through One Stop Integrated Services (PTSP) which are faster, have clearer time targets and are transparent.

The Assistant for Economics and Development believes that we all agree on why economic growth is important. If the economy grows, unemployment falls and poverty is reduced. And what is no less important, regional revenues increase so that sufficient funds are available to finance development, build road infrastructure, schools, health centers and others.

At the end of his speech, Assistant II for Economics and Development of the Regional Secretariat of East Kalimantan Province, Ir. Muhammad Sa'Bani, M.Si conveyed the position of the Regency/City proposals which have been input into the East Kalimantan Regional Development Planning Information System (SIPPD) which is the discussion material for today's and tomorrow's Forum, namely: Number of Programs 30, Number of Activities 653 with a total budget of Rp. 1.45 Trillion. with details: 1). Berau is Rp. 260.81 Billion; 2). Kubar Rp. 122.97 Billion; 3). Kukar Rp. 42.24 Billion; 4). Paser Rp. 122.95 AD; 5). PPU Rp. 222.80 AD; 6). Balikpapan Rp. 48.79 AD; 7).Bontang Rp. 38.74 AD; 8). Samarinda, Rp. 0; 9). Up to Rp. 109.01 and Kutim Rp. 486.48 Billion.

The Assistant for Economics and Development of the East Kalimantan Provincial Secretariat reminded that this Forum is truly capable of aligning priority development programs/activities in accordance with the 2016 DEVELOPMENT FOCUS, namely, INCREASING ADDED REGIONAL ECONOMIC VALUE AND REGIONAL CONNECTIVITY to become material in the preparation of the 2016 RKPD PLAN.

(Public Relations of Bappeda East Kalimantan Province/Sukandar, S.Sos).