South Kalimantan is currently facing significant challenges related to the projected depletion of coal reserves in the region. Based on the latest information, verified coal reserves in South Kalimantan are estimated to only last for about 24 years.
In dealing with this issue, the government, industry, and local communities need to work together to ensure a smooth transition. This is related to dependence on coal towards more sustainable energy sources and broader economic diversification.
Head of the Regional Office of the Directorate General of Treasury of South Kalimantan Province, Syafriadi, emphasized the importance of paying attention to the fiscal impacts that will arise due to the end of coal utilization. According to Syafriadi, there are several main impacts that need to be considered.
“First, the decline in coal mining activity has the potential to increase unemployment and increase the fiscal burden due to social assistance costs. Second, reduced revenue from coal exports can reduce regional income, which has an impact on the region’s ability to finance infrastructure and public services. Third, the decline in the coal industry has the potential to affect the overall economic performance of the region, including aspects of inflation, trade balance, and economic growth,” said Syafriadi, Saturday (7/9/2024).
To overcome these problems, an economic diversification strategy is needed that focuses on three leading sectors in South Kalimantan, namely industry, services, and agriculture. The development of these sectors can help increase the resilience of the regional economy to commodity price fluctuations and climate change.
In the industrial sector, one of the potential commodities that can be developed is albumin. South Kalimantan has the potential for processing albumin from snakehead fish and alabio duck eggs, which can provide higher commercial value after being processed. Meanwhile, in the service sector, development opportunities cover various fields such as banking and capital services, warehousing services, logistics services, and culinary services.
These sectors have the potential to support regional economic growth and improve service quality. In the agricultural sector, several commodities that need to be developed include haruan fish, alabio ducks, and other poultry.
The development of these commodities is expected to make a positive contribution to the local economy and create new jobs. With collaborative efforts between the government, industry, and local communities, South Kalimantan is expected to make an effective transition from dependence on coal to a more sustainable and diverse economy.
source: https://www.rri.co.id/daerah/961634/isu-regional-terkait-proyeksi-habisnya-batubara-di-kalimantan-selatan