East Kalimantan`s Economy Still Heavily Relies on Coal Price
TEMPO.CO, Samarinda - Bank Indonesia of East Kalimantan Province (BI Kaltim) predicted that economic growth in the province reaches 3.5 percent. The figure indicates an increase compared to that of the previous two years in which East Kalimantan experienced a decrease. The growth is caused by the rise of coal price.
“A number of East Kalimantan infrastructure is still under construction and it cannot yet be used. Mining sector contributes 46 percent to economic growth. Price still highly determines the contribution. The price of coal as commodity strongly correlates with economic growth,” BI East Kalimantan head of Economic and Finance Advisory Team Harry Aginta explained in Samarinda, Dec. 2.
Harry stated that in terms of quantity, coal production in Kaltim is still the same, but the rise of the commodity price contributes to the increase of economic growth compared to that of the previous two years.
“It does not reflect the real economic growth. For example, if coal price remains steady, the economic growth will go minus,” Harry said.