Tarakan’s economy showed resilient performance in the first quarter of 2025, recording an annual growth of 5.02% (y-on-y), outpacing North Kalimantan's overall growth of 4.06%. This achievement, based on data from BPS Tarakan, was primarily driven by the dynamic tertiary sector—comprising trade, finance, healthcare, education, and logistics—which grew 8.23% and contributed over 60% to the city's total GDP. Household consumption also played a key role, rising 5.91% annually, reflecting robust consumer activity.
Despite strong year-on-year growth, Tarakan’s economy experienced a quarter-on-quarter contraction of 1.78%, largely due to seasonal factors. The secondary sector (manufacturing, construction, utilities) fell by 6.01%, while the tertiary sector slipped by 0.90%. In contrast, the primary sector (agriculture, fisheries, mining) grew 2.19% quarterly, helping offset some of the decline. Structurally, Tarakan remains a service-oriented city, contributing 37.63% to the province’s total GDP—far ahead of other districts—solidifying its role as North Kalimantan’s economic engine. To sustain momentum, local businesses are encouraged to innovate within the service sector while bolstering primary and secondary industries. Strategic investments in infrastructure and technology, combined with policies that support household spending and tourism, could help counterbalance short-term contractions. With the right initiatives, Tarakan is well-positioned to enhance its status as a leading economic hub in the region.
