South Kalimantan economy grew 4.81 percent yoy in Q1 2025

South Kalimantan Province recorded its economy growing 4.81 percent year-on-year (yoy) in the first quarter (Q1) of 2025. Finance Ministry Taxation Directorate-General (DJT) South Kalimantan Regional Office Head Catur Ariyanto Widodo emphasized that the achievement reflected the province's economic responsiveness to external dynamics.

"This demonstrates South Kalimantan's success in maintaining stability and stimulating domestic economic activity," he stated in Banjarmasin City, South Kalimantan on July 2, 2025.

The mining and quarrying sector is the most prominent business sector for South Kalimantan's economic growth in Q1 2025, contributing 28.33 percent to the province's total gross domestic product (GDP). Furthermore, household consumption remains the largest driver of growth, with is contribution of 48.55 percent to the province's GDP indicating that the local public purchasing power and confidence in future economic prospects were both maintained.

"By strengthening leading sectors and consistently growing public purchasing power, South Kalimantan demonstrates strong adaptability and competitiveness in maintaining the momentum of economic growth," Catur added.

He also noted that South Kalimantan's balance of trade recorded a surplus of US$749.49 million in May 2025, although that figure is a slight decline due to a significant 56.85 percent month-to-month (mtm) surge in imports while exports contracted slightly by 1.73 percent mtm. The decrease in exports was caused by a drop in the export volume of coaland lignite, while the rise in imports was due to an increase in purchases of transport vessels. Nevertheless, overall, South Kalimantan's economic performance in early 2025 showed promising signs of recovery amid ongoing global pressures.

The South Kalimantan state budget revenue target was set at Rp22.04 trillion for 2025, with the realized satate budget revenue reaching Rp4.41 trillion or 19.9 percent of said target as of May 2025. However, the figure represents a 42.65 percent fall yoy. Tax revenue dominates state revenue.

Although overall state revenue contracted, Catur stated, "Revenue from customs and excise has exceeded the target and grew positively by 224.8 percent."

South Kalimantan's non-oil and gas income tax fell by 18.27 percent to Rp3.18 trillion, largely due to the centralization of police allowances payments and teacher certification in Jakarta that resulted in a shift in Article 21 Income Tax records. The public administration sector also saw a 19.78 percent contraction due to the reduction in South Kalimanta's 2025 budget ceiling amid the Prabowo Subianto administration's budget austerity policies. Property and building taxes in South Kalimantan dropped sharply by 80.69 percent to Rp43.26 billion due to a decrease in taxpayers paying taxes outside the current year. Value added tax and luxury goods sales tax combined also fell steeply by 111.24 percent to Rp278.19 billion beacuse of an increase in tax restitution. On the other hand, other types of taxes saw a massive 8,753.76 percent jump to Rp355.76 billion.

Customs and excise revenues in the province totaled Rp406.51 billion, supported by export duties that accounted for 94.99 percent of the total. Other revenues collected by the Finance Ministry's Customs and Excise Directorate-General (DJBC) totaled Rp2.17 trillion, including Rp964.1 billion of import taxes that was comprised of Rp179.4 billion in import income taxes and Rp784.7 billion of VATs. Non-tax state revenue dropped by 12.57 percent to Rp697.13 billion. It included Rp187.84 billion of public service agencies revenue, which was a 5.12 percent growth, and other non-tax state revenues which were down 17.68 percent to Rp509.29 billion. Luxury goods sales taxes managed by the Finance Ministry's Treasury Directorate-General, such as ones on assets, state receivables, and auctions, contributed Rp11.97 billion.