Investment and SME Growth Help Balikpapan Achieve Lowest National Poverty Rate

Balikpapan recorded the lowest national poverty rate in 2025 at 1.97 per cent. This achievement stems from increased investment and SME growth in the city. Mayor Rahmad Mas’ud attributed the success to the hard work of local government officials and support from various stakeholders. Community involvement in sustaining micro-enterprises also contributed to the decline in poverty. Empowerment of SMEs and the creative economy is a key focus. Through Dekranasda’s efforts, various areas in Balikpapan have been transformed into new culinary hubs, including along MT Haryono Road. “This is a team effort, not an individual one. We hope to improve further. At the very least, we must keep the rate from rising. This is a priority,” he told Media Indonesia on Friday (29 May). According to the Balikpapan City Government’s Accountability Report (LKPJ), the city’s poverty rate in 2025 dropped by 2.23 percentage points from the previous year. However, Rahmad stressed that the low figure does not mean poverty has been eradicated, but rather demonstrates the positive impact of government programmes. The mayor noted that a key factor in the poverty reduction was Balikpapan’s economic growth surging to 10 per cent. This rapid growth has successfully maintained inflation stability and purchasing power. “This economic dynamism indicates strong economic stability,” he added. To sustain this positive trend, the city government is pushing for more investment. Rahmad praised investors for creating new business opportunities and absorbing local labour. “When they invest and create business opportunities here, it involves local workers. This is another indicator helping to reduce poverty,” he added.