Province

North Kalimantan

Overview Economy

North Kalimantan, diversity in numbers

Situated on the island of Borneo, North Kalimantan is a province formed in 2012 under Law No. 20/2012 on the Establishment of North Kalimantan Province to reduce development disparities from East Kalimantan. The capital of North Kalimantan is Tanjung Selor, located on the eastern coast of the province. Meanwhile, the largest city, Tarakan, serves as the financial center.

Covering 70,101 square kilometers, North Kalimantan consists of four regencies and one city. It was once dubbed as the least populous province in Indonesia, prior to the creation of South Papua in 2022. As of 2023, however, it is estimated that North Kalimantan had a population of 730,010 people, representing various ethnicities including indigenous Kalimantan people such as Dayak, Tidung, Malay, Kutai, and Banjar, as well as migrant groups such as Bugis, Javanese, Bajau, Manjar, Minahasa, Buton, and Gorontalo. Other ethnic groups such as the Madurese, Makassar, Toraja, Chinese, Bawean, Balinese, and Suluk/Tausug people also reside in the province.

Based on the 2023 Census, North Kalimantan is home to 73.36 percent of the Muslim population, followed by 26.02 percent of Christians, where 19.44 percent are Protestants and 6.58 percent are Catholics. Most of the Christian population in North Kalimantan resides in Malinau. The remaining religious groups in the province are 0.54 percent Buddhists, 0.05 percent Hindus, 0.02 percent Konghucu, and 0.01 percent indigenous faiths.

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North Kalimantan’s economy and leading sectors

North Kalimantan has seen a positive increase in the province’s economy. According to data from the North Kalimantan Central Statistics Agency (BPS), the province’s economic growth in the fourth quarter of 2023 experienced a growth of 4.94 percent, making it the second-highest economic growth on the island of Kalimantan. Furthermore, the province’s Regional Gross Domestic Product (GRDP) in 2022 amounted to Rp 66 trillion with contribution from the mining sector quoted as the largest at Rp 17 trillion.

The province’s geographical condition also benefits the province in developing its fisheries sector, utilizing its marine resources and abundant fish cultivation for both domestic consumption and overseas export. Consequently, this sector, which also includes forestry and agriculture, has contributed to North Kalimantan’s economic growth, with a contribution of Rp 11 trillion to the province’s 2022 GRDP.

Furthermore, North Kalimantan has recorded potential in its exports. In 2021, the province exported a total of 20.8 million tonnes valued at US$164 billion. The majority of this amount, accounting for 20.7 million tonnes, comprised mineral fuels, mineral oils, and their distillation products, bituminous substances, and mineral waxes, totaling US$163.8 billion. Tobacco and manufactured tobacco substitutes came next, totaling 16,275 tonnes worth US$134 million, followed by fisheries at 12,209 tonnes with a value of US$28.7 million.

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Latest News

August 13, 2025

The Coordinating Ministry for Economic Affairs estimates that the Integrated Refinery and Petrochemical Project developed by PT Taikun Petro Chemical would contribute an additional US$9 billion annually to Indonesia's gross domestic product (GDP). As a form of government support for accelerating investment realization, the Coordinating Ministry has signed a memorandum of understanding (MoU) with PT Taikun Petro Chemical regarding the project's investment commitments.

The signing took place in Jakarta Special Capital Region (DKI). It involved Coordinating Ministry for Economic Affairs Economic Cooperation and Investment Coordination Deputy Edi Prio Pambudi and PT Taikun Petro Chemical Director Xu Xuegen. The company is a local consortium of Chinese companies that encompass Tongkun Group, Xinfengming Group, and Tsingshan Group.

The consortium is investing nearly US$5.95 billion to construct a refinery with a capacity of 10 million tons of crude oil per year at the Kalimantan Industrial Park Indonesia (KIPI) in North Kalimantan Province. In addition to driving economic growth, the national strategic project (PSN) is also targeted to strengthen national energy security by reducing fossil fuel and petrochemical imports. It is also affected to improve state revenue and employment.

"This agreement affirms the government's commitment to create a better investment climate through streamlined licensing, fiscal incentives, and certainty of investment regulations. With this collaboration, it is expected that the project can operate optimally according to plan," said Deputy Edi as quoted on July 31, 2025.

The PSN is estimated to contribute U$140 million of additional tax revenue per year, as well as create 1,500 direct jobs and 8,000 indirect jobs for local workers. The Coordinating Ministry for Economic Affairs emphasized that it will continue to support the implementation of PSNs that would significantly benefit the national economy, including through regulatory support and a welcoming investment climate.

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