Wednesday, 18 December 2024
Expose Results of the East Kalimantan Incremental Capital Output Ratio (ICOR) Parameter Study 2019-2023
The Head of the Economic and Natural Resources Division of the Bappeda of East Kalimantan Province opened the Expose of the 2019-2023 East Kalimantan Incremental Capital Output Ratio (ICOR) Parameter Study Results which was held at the Mercure Samarinda Hotel, Wednesday (18/12).
Through this activity which was also attended by various stakeholders consisting of elements from BPS Kaltim, BRIDA Kaltim, DPMPTSP, and elements from the Planning Division of Bappeda Kaltim, it is hoped that valuable responses and suggestions can be obtained from stakeholders regarding investment and business to encourage increased investment in order to increase regional economic growth in the face of economic transformation.
The main results of this expose will then become the basis for improving the results of the 2019-2023 East Kalimantan ICOR parameter study.
For your information, ICOR is an indicator number that shows the amount of additional capital needed to increase/increase one unit of output in the economy of a region. The details are as follows: :
ICOR less than 3 – very efficient;
ICOR is said to be efficient if it is between 3 and 5;
ICOR more than 5 – less efficient;
ICOR is negative – can be ignored.
The ICOR of East Kalimantan in 2023 is 2.58, which means that additional investment of 2.58 units is needed to increase 1 unit of output in the East Kalimantan economy. This ICOR value shows that investment in East Kalimantan is quite efficient compared to Indonesia's ICOR of 6.73. Sectors with efficient ICOR (below 5) include fisheries, mining, transportation equipment industry, other processing industries, trade and repairs, hotels and restaurants, transportation, warehousing and communications, and other services.
More , ICOR can be used for development planning in East Kalimantan, such as identifying priority investment sectors, measuring economic growth targets, and formulating economic transformation strategies with a focus on potential sectors outside mining.
Apart from that, the study of ICOR is very important and interesting to encourage increased investment in order to increase regional economic growth. Through this study, it is hoped that the causes of the high ICOR figures can be identified, so that recommendations for appropriate policy materials can be formulated in order to encourage investment which ultimately creates high and equitable economic growth.
.png)
.png)
.png)
.png)
