South Kalimantan's economy depends on three sectors

In 2016 and 2017 the mining sector dominated the South Kalimantan economy as much as 20.9 percent, (Antaranews/doc.)

We look at the potential that exists, one of the potentials to be developed to improve the economy in South Kalimantan is sharia (Islamic) economic and finance,

Banjarmasin, S Kalimantan (Antaranews Kalsel) - Head of Bank Indonesia (BI) Representative of South Kalimantan Herawanto said the economy of the province is very dependent on three sectors, namely mining, CPO and rubber.

This is inseparable from the economic structure of South Kalimantan in 2016 and 2017 which was dominated by the mining sector, especially coal, the agricultural sector, and the processed industrial sector, he said in Banjarmasin on Saturday.

According to him, in 2016 and 2017 the mining sector dominated the local economy as much as 20.9 percent, the agricultural sector 14.9 percent, and the manufacturing industry sector 14 percent which in fact were commodity-based sectors.

Due to global uncertainty in recent years, the prices of these commodities have experienced instability, causing the economy of South Kalimantan to be vulnerable to global conditions.

Based on BI's research on the analysis of growth in 2015, he explained, South Kalimantan was trapped in earning a wealth of natural resources, thus not encouraging the growth of high value-added industries.

In fact, the majority of South Kalimantan's natural resources are exported in the raw or first processed form. Therefore, he said, efforts are needed to find new, more sustainable economic sources.

Based on the preliminary findings of the BI growth strategy research, he explained, the economic sector that has the potential to be developed as a source of new economic growth is agro-industry, fisheries, creative economy, and tourism.

"We look at the potential that exists, one of the potentials to be developed to improve the economy in South Kalimantan is sharia (Islamic) economic and finance," he said.