BI Sees Growth In Balikpapan Property Market Driven By IKN

Ria Sartika    Sunday, April 05, 2026    Comment   

BI Sees Growth In Balikpapan Property Market Driven By IKN

Bank Indonesia predicts housing demand in Balikpapan will rise in 2026 as IKN development continues and mortgage financing remains dominant.

Balikpapan, East Kalimantan — Bank Indonesia (BI) projects that housing demand in Balikpapan will increase in 2026, driven by the continued development of Ibu Kota Nusantara (IKN) and the gradual recovery of industrial activity in the region.

Head of BI’s Balikpapan Representative Office, Robi Ariadi, said the second phase of IKN construction is expected to boost worker mobility, which in turn will create additional demand for housing.

“The continuation of IKN development and the increasing industrial activity are expected to drive higher worker mobility, providing additional momentum for the housing market,” he said on Saturday.

Mortgage Financing Remains Key Driver

BI noted that mortgage loans (KPR) continue to play a dominant role in supporting Balikpapan’s property sector. By the end of 2025, total mortgage disbursement reached approximately Rp4.97 trillion, accounting for 78 percent of all housing transactions.

According to Robi, mortgages remain the preferred option for most homebuyers as they allow long-term installment payments, especially given that property prices in Balikpapan are generally beyond the reach of cash buyers.

Mortgage lending grew by 4.16 percent year-on-year. Although this growth is slower compared to previous periods, it indicates that housing financing remains relatively stable.

Larger Homes Gain Traction

Despite a slower pace in the residential market overall, demand for landed houses remains steady. Notably, larger house types recorded stronger sales toward the end of 2025.

This trend reflects continued activity among certain buyer segments, particularly those seeking more spacious homes or possessing stronger financial capacity.

Credit Risk Remains Manageable

From a risk perspective, BI reported that non-performing loans (NPL) in the housing sector remain below 5 percent. This suggests that borrowers’ repayment capacity remains stable despite ongoing economic adjustments.

The relatively low NPL level is seen as a positive signal for both the banking sector and the overall resilience of Balikpapan’s property market.

IKN’s Spillover Effect On Balikpapan

As one of the main supporting cities for IKN, Balikpapan is expected to see sustained growth in housing demand in the coming years. Increased worker mobility, industrial expansion, and the need for residential space are key contributing factors.

With these developments, the property sector is projected to remain one of the key pillars supporting regional economic growth.

FAQ

1. Why is housing demand in Balikpapan expected to rise?
Due to ongoing IKN development and increased industrial activity that drives worker mobility.

2. How much mortgage financing has been disbursed?
Approximately Rp4.97 trillion as of the end of 2025.

3. Is the property market in Balikpapan growing?
Yes, it remains stable with growth in certain segments like larger homes.

4. Are mortgages still the main financing option?
Yes, accounting for 78 percent of total housing transactions.

5. What is the current level of credit risk?
Non-performing loans remain below 5 percent, indicating stable repayment capacity.

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

Ria Sartika    Sunday, April 05, 2026    Comment   

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)

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.

PPU Government Accelerates Asset Inventory In Sepaku IKN To Prevent Disputes

Saputra Berry    Sunday, March 29, 2026    Comment   

PPU Government Accelerates Asset Inventory In Sepaku IKN To Prevent Disputes

PPU government records assets in Sepaku IKN to prevent disputes. Asset value reaches $58M and will be transferred to the IKN Authority.

The Penajam Paser Utara (PPU) Regency Government in East Kalimantan has accelerated the recording and inventory of regional assets located in Sepaku District, an area now included in Indonesia’s new capital city, Nusantara (IKN).

This move is aimed at preventing potential disputes as the transition of authority to the central government progresses.

Head of the Regional Financial and Asset Agency (BKAD) of PPU, Muhajir, stated that all government-owned assets—including land, buildings, and equipment—are currently being thoroughly documented.

“All land, buildings, and government equipment in the IKN area are being recorded and inventoried,” he said.

Preventing Future Asset Disputes

Muhajir emphasized that the inventory process is crucial to ensure clear ownership status before the assets are eventually transferred to the IKN Authority.

This step is intended to avoid conflicts, especially when assets in Sepaku begin transitioning to central government control.

Once officially transferred through a grant mechanism, these assets will be removed from the regency’s asset records.

Assets To Be Transferred To IKN Authority

In the future, all regional assets within the IKN area are planned to be granted to the IKN Authority, particularly after the establishment of a special administrative government (Pemdasus) for the new capital.

One example of such a transfer took place in 2024, involving the Trunen livestock area in Bumi Harapan Village, Sepaku District.

The land spans 42.6 hectares and includes buildings along with 20 units of machinery, with a total value of approximately $1.1 million.

“So far, only the Trunen livestock land has been granted in 2024, and there have been no further requests for asset transfers,” Muhajir explained.

Total Asset Value Reaches $58 Million

Overall, the value of assets owned by the PPU Government in Sepaku District continues to increase each year.

As of the end of 2024, the total recorded value has reached approximately $58 million.

However, this figure does not yet include additional assets developed or purchased in the 2025 fiscal year.

Assets Still Owned By PPU Government

For now, all assets located within the IKN area remain under the ownership of the PPU Regency Government.

This is because Sepaku District is still administratively part of PPU, and no derivative regulations from the IKN Law have been issued regarding asset transfers.

“Assets in the IKN area are currently still under the ownership of the Penajam Paser Utara Government,” Muhajir confirmed.

FAQ

1. Why are PPU assets in Sepaku being recorded?
To prevent disputes during the transition of assets to the central government or IKN Authority.

2. What is the total value of these assets?
Approximately $58 million as of the end of 2024.

3. Have all assets been transferred to IKN?
No, only the Trunen livestock land was transferred in 2024.

4. Who will receive the assets in the future?
The IKN Authority, after the establishment of a special administrative government.

5. Who currently owns the assets?
They are still owned by the PPU Regency Government.