Indonesian Political, Business & Finance News

Samarinda City Leads in Financing Innovation and Inflation Control

| Source: TEMPO_ID Translated from Indonesian | Economy

Samarinda City achieved a significant milestone by securing the top positions in two categories at the 2026 Regional Kalimantan Outstanding Local Government Awards, held in Balikpapan on Tuesday, 5 May 2026. Under the leadership of Mayor Andi Harun, Samarinda ranked first in the ‘Entrepreneur Government/Creative Financing’ and ‘Inflation Control’ categories.

Mayor Andi Harun attributed this achievement to the collective efforts of the Samarinda City Government, regional leadership coordination bodies (Forkopimda), and the community. Throughout his two terms, the Mayor has consistently focused on improving governance, budget structures, and controlling inflation to ensure the affordability of basic necessities for the public.

Regarding creative financing, the Mayor emphasised the importance of increasing Regional Original Income (PAD) without over-relying on central government transfers. A key strategic move has been the comprehensive revitalisation of Regional Owned Enterprises (BUMpend). Previously viewed as a financial burden, these entities are now being transformed into professional, business-oriented entities capable of contributing to the regional budget. The Mayor stated that BUMDs should not depend on the regional budget (APBD) but should instead utilise innovative financing methods, such as bank syndicates or business loans, provided the business projections remain profitable.

A notable example of this transformation is seen in the Regional Water Utility Company (Perumdam Tirta Kencana Samarinda). The administration is pushing for the implementation of smart water management based on the Internet of Things (IoT), real-time leak detection sensors, and digital payment systems to improve efficiency and service quality. The goal is to increase net profits by 20-30 per cent through cost efficiency and revenue diversification.

In terms of inflation control, the Mayor highlighted the necessity of government intervention to protect public purchasing power amidst a changing global economic landscape. According to data from the Samarinda Central Bureau of Statistics (BPS), the monthly inflation rate for April 2026 was recorded at 0.11 per cent, with an annual inflation rate of 2.92 per cent. This remains within the national target range of 1.5-3.5 per cent, demonstrating that consumer prices in the region remain relatively stable due to coordinated efforts to maintain supply and price stability.

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