BorneoEnglish: Economic Transformation News Today
Showing posts with label Economic Transformation. Show all posts
Showing posts with label Economic Transformation. Show all posts

Sunday, April 5, 2026

Kukar Economic Shift: From Oil And Coal To Agriculture For Food Security

Kukar shifts from oil and coal to agriculture to strengthen food security. Becoming East Kalimantan’s top rice producer marks real progress. (Illustration)
Kukar shifts from oil and coal to agriculture to strengthen food security. Becoming East Kalimantan’s top rice producer marks real progress. (Illustration)

TENGGARONG – The government of Kutai Kartanegara (Kukar) is accelerating its economic transformation from oil, gas, and coal sectors toward agriculture in a broad sense. This strategic move aims to strengthen regional food security and reduce dependence on external supply.

Deputy Regent of Kukar, Rendi Solihin, stated that the region is entering a more focused and sustainable development phase.

“The current development focus is transitioning from the ‘Kukar Idaman 2021–2026’ vision to a stronger, long-term foundation through ‘Kutai Kartanegara Idaman Terbaik 2025–2029’,” he said in Tenggarong on Saturday.

Transition Toward Sustainable Economy

Under this new phase, the government has set a strategic vision: building a foundation as a center for food, tourism, and green industry that is advanced, prosperous, and sustainable.

This shift is also part of Kukar’s preparation to support the development of Nusantara Capital City (IKN).

Moving away from extractive industries toward renewable sectors is seen as a long-term strategy to ensure economic resilience.

Focus On Agricultural Downstreaming And Village Economy

Rendi added that the mission focuses on agricultural downstreaming and strengthening village-level economic independence. The goal is to ensure economic growth benefits reach grassroots communities.

The local government is working closely with village administrations to develop food barns, utilizing at least 20 percent of village funds allocated for the National Food Security Program.

This initiative has been implemented since 2025. One example is Mulawarman Village in Tenggarong Seberang District, which successfully carried out its harvest in late March.

Kukar Becomes Top Rice Producer In East Kalimantan

Through collaboration with various stakeholders, including the Ministry of Agriculture, Kukar has emerged as the leading rice producer in East Kalimantan.

Data from 2025 shows:

  • Kukar rice production (dry milled grain/GKG): 110.87 tons

  • Paser Regency: 67.65 tons

  • Penajam Paser Utara: 47.58 tons

In terms of harvested area:

  • Kukar: 26,287 hectares

  • Paser: 14,599 hectares

  • Penajam Paser Utara: 13,570 hectares

These figures reinforce Kukar’s role as a key food production hub in the region.

Analysis: Why This Strategy Matters (E-E-A-T)

This economic transformation is considered relevant and strategic because it:

  • Reduces dependence on volatile extractive industries

  • Strengthens regional food resilience

  • Creates jobs in productive sectors

  • Supports the transition toward a green economy

Kukar’s approach aligns with Indonesia’s broader national development priorities focused on sustainability and food security amid global uncertainties.

FAQ

1. What is the main goal of Kukar’s economic transformation?
To reduce reliance on oil, gas, and coal while strengthening food security.

2. Why is Kukar focusing on agriculture?
Because agriculture is more sustainable and crucial for supporting food demand, especially with IKN development.

3. Has the program been implemented?
Yes, village-based food security programs have been running since 2025.

4. What proves the success of this transformation?
Kukar has become the top rice producer in East Kalimantan.

5. What is the impact on local communities?
It improves village economic independence and creates new agricultural opportunities.

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