East Kalimantan Regional Economic Transformation: Enhancing Economic Resilience Through Natural Resource Diversification for Sustainable Development
DOI:
https://doi.org/10.35334/af40n416Keywords:
Regional Economic , Transformation, Extractive Sectors, Economic Diversification, Regional Economic Resilience, East KalimantanAbstract
East Kalimantan Province is characterized by a high dependence on extractive sectors, particularly mining and oil and gas. This dependency has resulted in an economic structure that is vulnerable to global commodity price fluctuations and may hinder the transition toward sustainable development. This study aims to analyze the process of regional economic transformation in East Kalimantan by identifying key economic sectors, examining growth dynamics, and assessing diversification opportunities that could strengthen regional economic resilience. The research utilizes Location Quotient (LQ), Shift-Share analysis, and a sectoral assessment of extractive and non-extractive industries across the province’s ten districts and municipalities. The findings reveal that although extractive sectors continue to dominate the regional economic structure, several non-extractive sectors such as trade, information and communication, downstream manufacturing, and modern services are exhibiting increasing competitiveness and positive growth trends. These results indicate significant potential for economic diversification, particularly through the expansion of service-based industries, enhancement of value-added activities, and development of innovation-driven economic linkages. The study recommends transformation strategies focused on reducing commodity dependence, strengthening regional value chains, and promoting inclusive sustainable development to support East Kalimantan’s long-term vision as an emerging economic growth center in Indonesia.Downloads
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Copyright (c) 2026 Indra Maulana, Agus Junaidi, Nurfiza Widayati (Author)
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