Province

Central Kalimantan

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 18, 2024

The Pontianak City Government had completed a focus group discussion with business actors about a investment potential and opportunities maps for improving Pontianak City's economic growth.

"Collaboration between the government and business actors to increase investment is very important," Pontianak City Acting Mayor Ani Sofian stated in Pontianak City, West Kalimantan Province on Aug. 15, 2024.

He ordered the relevant Pontianak City Government offices to promptly accelerate business licensing to encourage investment, and thereby improve economic growth.

"The central government's target based on President Joko Widodo's direction is to increase investment," Ani said.

He added that, as the provincial capital, Pontianak is West Kalimantan's economic center, but its minimal natural resources presents a challenge towards generating regional income.

"We can maximize the potential of [Pontianak City's] services with the creative and entertainment industry, such as through culinary activities, cultural activities, and others," Ani said.

He noted that, on top of the rules that must be complied with as prerequisites, the issuance of permits must also keep in mind Pontianak's increasingly limited available areas.

"Licensing requirements must also be completed by business actors, so we must do right by each other. The government must promptly issue permits, while the ones requesting said permit must complete all requirements properly," Ani explained

Meanwhile, Pontianak City One-Stop Integrated Services Office (DPTSP) Head Hidayati explained regarding the discussion of investment potential and maps that the DPTSP is involved various groups, such as regional officials, local offices of Indonesian government institutions and elements, as well as business actors.

"This discussion is done for coordination between the parties involved, so that the investment map could be enacted consistently and decide Pontianak City's investment priorities," he said.

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