Province

Central Kalimantan

Overview Economy

Central Kalimantan

Central Kalimantan, situated in the heart of Borneo island, is a province with Palangkaraya as its capital city. With a population of 2.75 million people in 2023, it stands as the least populous province on the island. The majority of this population identifies as Muslims. 

Central Kalimantan is notably home to the Dayak people, who possess a culture of unique traditions and customs with its subgroups of Ngaju, Ot Danum, and the Ma’anyan. Several ethnic groups from outside the island also live in the province, such as the Malay, Madurese, Sundanese, Balinese, Bugis, Batak, and Flores people. Additionally, Central Kalimantan’s culture is defined by its cuisine, which gained the recognition of the Tourism Ministry in 2023. The province’s notable dishes include fried lais fish, roasted catfish (patin), juhu rotan baung, kandas sarai, and jelawat soup.

North Kalimantan’s culture is also shaped by its history as a trading center, which has led to influences from Malay, Chinese, and Arab cultures. Subsequently, the province has drawn a considerable number of tourists, totaling 1.8 million in 2023, surpassing the initial target of 800,000.

Furthermore, the province boasts an abundance of natural wonders, including rainforests, rivers, and exotic wildlife. The world’s largest tropical rainforest lies in North Kalimantan, harboring an array of plant and animal species endemic to Borneo. Additionally, rivers such as the Kahayan and Kapuas rivers have functioned as lifelines for the local communities, providing transportation, irrigation, and sustaining livelihoods.

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Economic development

Central Kalimantan is driven by various sectors that have contributed to its Gross Regional Domestic Product (GRDP). In 2023, the province’s GRDP was primarily driven by the agriculture, forestry, and fishery sector, with a contribution of Rp 23 trillion. This sector also experienced a growth rate of 4.41 percent in 2023 from 3.63 percent in 2022.

Following closely behind is the processing industry sector with a GRDP of Rp 17.9 trillion in 2023, and the mining sector with Rp 15.7 trillion. While the processing industry sector experienced a growth in its GRDP from Rp 16.9 trillion in 2022, the mining sector recorded a higher GRDP in 2022 with Rp 16.6 trillion.

Furthermore, recent investment trends in Central Kalimantan have shown positive growth, with investment realization in the province increasing by 32.44 percent in 2023 compared to the previous year. Initially, the Investment Ministry set a target of Rp 16.09 trillion for investments in the province, which was exceeded by Rp 19.10 trillion (118.74 percent) by the year’s end.

Foreign investment dominated the investment landscape in Central Kalimantan, amounting to Rp 10.32 trillion, while Rp 8.78 trillion originated from domestic investment sources. The agriculture and farming sector was recorded as the sector absorbing the highest investment, followed by the mining sector. Additionally, the growth in the food processing industry sector indicates that this sector could potentially become a leading sector for investment in the province.

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Latest News

August 26, 2025

Realized investments to Central Kalimantan Province reached Rp12.44 trillion during the first half (H1) of 2025.

"The investment value in the second quarter (Q2) was [nearly] Rp5.29 trillion, adding to the previous achievement in the first quarter (Q1) which reached [nearly] Rp7.16 trillion," explained Central Kalimantan Investment and One-Stop Integrated Services Office (DPMPTSP) Head Sutoyo when contacted from Palangka Raya City, Central Kalimantan on Aug. 4, 2025.

The Central Kalimantan investment realization target set by the Indonesian government for 2025 is Rp25.93 trillion, henced the realized investment for H1 2025 reached 47.99 percent of the target. Sutoyo stated that the development of regional investment realization in H1 2025 showed a very positive achievement.

"On the other hand, there are still various challenges that need to be identified and addressed jointly by all stakeholders," he said.

Sutoyo emphasized that the Central Kalimantan DPMPTSP is committed to working optimally to provide the best, including realizing the investment targets set by the central government.

"In line with the direction of Central Kalimantan Governor Agustiar Sabran, we are ready to accelerate the optimization of various development sectors, including the investment sector, as an effort to improve public welfare," he emphasized.

Furthermore, Sutoyo conveyed that the investment achievement in H1 2025 demonstrate the potential and attractiveness of Central Kalimantan as a prospective investment destination.

"[However], the official data we receive through the system may not fully reflect the reality on the ground. Many business actors, especially in large sectors, have not submitted regular reports on their investment realization," Sutoyo admitted.

Furthermore, Sutoyo explained that business actors are required to report investment realization through the quarterly Investment Activity Report (LKPM). This report provides information on investment developments and the obstacles encountered and is submitted through the oss.go.id portal.

"The regional government is consistently taking strategic steps to raise business awareness of reporting obligations through outreach activities and regular technical guidance," he concluded.

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