Antara News·Indonesia·Friday, October 9, 2026 at 07:00 AM UTC

Indonesia pitches Kalimantan as new growth hub at Borneo forum

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Rangga Pandu A J, Resinta Sulistiyandari

Kuala Lumpur, Malaysia (ANTARA) - Indonesia plans to make Kalimantan and its new capital Nusantara engines of economic growth, National Development Planning Minister Rachmat Pambudy and Nusantara Capital Authority Chairman Basuki Hadimuljono said.

In keynote addresses at the second Borneo Economic Forum in Kuching, Malaysia, on October 7-8, they called for stronger connectivity, energy links, digital infrastructure, investment and regional value chains.

The Indonesian Consulate General in Kuching said on Friday that Pambudy wants to shift economic growth beyond Java and Sumatra, positioning Kalimantan as the “Nusantara Economic Superhub,” with Nusantara anchoring the transformation.

Indonesia is developing six strategic clusters in Kalimantan: clean technology, integrated pharmaceuticals, sustainable agriculture, ecotourism and wellness tourism, the chemical industry, and low-carbon energy.

Pambudy said the transformation requires investment in people and infrastructure, including health care, education, skills development, sustainable industrial downstream processing and tourism.

He said development should also be underpinned by good governance, respect for Indigenous peoples’ rights, forest conservation and stronger social and ecological resilience.

Connectivity priorities include the Nusantara-Balikpapan-Samarinda corridor, completion of the Trans-Kalimantan Highway, expanded rail and air networks, and improved border access to foster inclusive economic growth.

Preventing forest and land fires and mitigating floods through early-warning systems and risk-based spatial planning are also critical to sustainable development, he said.

Indonesia is also seeking to strengthen the Brunei Darussalam–Indonesia–Malaysia–Philippines East ASEAN Growth Area (BIMP-EAGA) and the Borneo Economic Community (BEC) as platforms for deeper cooperation, business dialogue and experience-sharing.

Regional priorities include better transport and border links, interconnected energy networks, industrial investment, stronger regional value chains and expanded digital infrastructure.

Partners also aim to upgrade workforce skills and use artificial intelligence to expand trade and investment while supporting inclusive, sustainable growth across Borneo.

Basuki said Nusantara’s development is on track and in Phase II (2025-2029) under Presidential Regulation No. 79 of 2025, targeting political-capital status in 2028.

Nusantara’s development is planned through 2045, following forest-city, sponge-city and smart-city principles while opening investment opportunities to private businesses and regional partners, including ASEAN.

The second Borneo Economic Forum, held on October 7-8 in Sarawak, brought together government officials, business leaders, investors, academics and other stakeholders from Indonesia, Sarawak, Sabah, Brunei Darussalam and beyond.

Government, business and international institution representatives discussed investment opportunities, connectivity, the energy transition, digitalization and closer economic integration across Borneo.

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