South Kalimantan encourages green investment to reduce mining dependence

The South Kalimantan Provincial Government continues to encourage the entry of green investment as a substitute for mining sector investment, which has so far been the mainstay of the South Kalimantan economy, in the backdrop of the Indonesian government targeting investment to South Kalimantan reaching Rp30 trillion in 2025.

South Kalimantan Regional Development Planning Agency (Bappeda) Head Ariadi Noor revealed the plan on the sidelines of the 2025 Regional Consultation on Gross Regional Domestic Product for the central and eastern regions of Indonesia, namely the islands of Kalimantan, Sulawesi, and Papua as well as the Maluku archipelago in Banjarmasin City, South Kalimantan on Jun. 13, 2025.

"The South Kalimantan Provincial Government has begun to make an economic transition. We are gradually shifting from the mining sector, which has been the mainstay so far, to renewable and sustainable natural resources. Therefore, we continue to encourage the entry of green investment, namely investment that supports environmentally friendly and sustainable projects," said Ariadi.

Sectors such as agriculture, plantations, fisheries, and tourism are expected to be able to reduce the province's dependence on the mining sector. Moreover, the existence of the Meratus Geopark, which has been designated as a United Nations Educational, Scientific and Cultural Organization (UNESCO) Global Geopark is expected to boost the regional economy through the tourism, arts, and culture sector.

Meanwhile, South Kalimantan Investment and One-Stop Integrated Service Office (PMPTSP) Investment Agency Head Endri acknowledged on the same day that the mining sector is still a mainstay that attracts investors. Realized investments to South Kalimantan was recorded to reach Rp25 trillion in 2024, far exceeding the Rp9 trillion target set by the Indonesian government.

"Investment in South Kalimantan is still dominated by the mining sector. But we continue to encourage [investment] potential in other sectors, such as fisheries, plantations, tourism, agriculture, and manufacturing," he said.

Until the first quarter of 2025, investment realization to South Kalimantan was Rp7 trillion. The Rp30 trillion target set by the central government is considered quite difficult amidst current conditions. However, Endri emphasized that the South Kalimantan Provincial Government will make various breakthroughs to overcome said challenges, such as by promoting digital investment.