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

November 27, 2025

Realized investments to Central Kalimantan Province for 2025 reached Rp 19.62 trillion the third quarter (Q3), or 75.67 percent of the annual target of Rp 25.93 trillion. This achievement is also a 35.79 percent improvement from the second quarter (Q2) of 2025. Central Kalimantan Investment and One-Stop Integrated Services Office (DPMPTSP) reported that domestic investments accounted of the total at nearly Rp 5.47 trillion, while foreign investments reached Rp 1.71 trillion.

The food manufacturing sector was the main contributor to domestic investments in Central Kalimantan at nearly Rp 2.13 trillion, followed by the mining sector and the food crops, plantations, and livestock subsectors. Meanwhile, the mining sector was the main driver of foreign investments with Rp 705 billion, followed by the food manufacturing sector and the food crops, plantations, and livestock sector.

"The increase in investments to Central Kalimantan aligns with the vision of development continuously emphasized by Governor H. Agustiar Sabran," Central Kalimantan DPMPTSP Head Sutoyo stated.

Sutoyo also urged business actors to maintain regulatory compliance and fulfill all business obligations, including regional tax obligations. He emphasized that tax compliance is a crucial part of maintaining fiscal stability and supporting regional development. The types of regional taxes of concern include the Motor Vehicle Tax, Surface Water Tax, Heavy Equipment Tax, Fuel Tax, and the Non-Metal Mineral and Rock Tax (MBLB). Improved compliance is expected to significantly contribute to Central Kalimantan's locally-generated revenue (PAD).

Previously, Governor Agustiar highlighted the importance of cross-sector synergy in strengthening the regional economy. In the Coordination Meeting on Optimizing Mining Sector PAD, he emphasized the importance of collaboration between the government, the private sector, and the people to maintain the momentum of economic growth amid global challenges. He also stressed that increasing investment is part of a broader strategy to strengthen PAD through careful and sustainable natural resource management.

"All parties must work together to support Central Kalimantan's vision of development, which focuses on the welfare of the Dayak people and all Central Kalimantan residents [as well as] towards [the realization of the national] Golden Indonesia 2045 [vision]," Agustiar emphasized.

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