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

March 21, 2025

Central Kalimantan has great potential in developing renewable energy. Central Kalimantan Regional Development Planning, Research, and Innovation Agency (Bapperida) Head Leonard S. Ampung stated during a focus group discussion Best Western Batang Garung Hotel on Feb. 26, 2025, emphasized that the construction of the Muara Juloi Dam is one of the strategic projects for regional energy security that also supports the Nusantara Capital City (IKN).

"The 300 Megawatt new energy [source] could be a place for Central Kalimantan to partner with IKN. The PAD (locally-generated revenue) potential from this project will have an impact on all regencies [in Central Kalimantan]," he said.

Leonard added that the project has been strategically planned so that it could provide long-term benefits for the people of Central Kalimantan. In addition, the dam also has the potential to reduce the risk of flooding and increase water supply for agriculture.

However, there are still various challenges that must be overcome, especially related to regulations and land permits. Leonard hopes that the FGD could help resolve all obstacles to start the dam's operations. Thes dam will also create new jobs and encourage investment in the renewable energy sector.

"We want Central Kalimantan to not only be a supplier of raw materials, but also have a strong downstream industry," he divulged.

On the other hand, Leonard highlighted the importance of infrastructure connectivity so distribution of energy and goods could be more efficient.

"There are roads that are still limited, such as access between Central Kalimantan and West Kalimantan which is hampered by protected forest land. We must discuss this [issue] further so that development is more effective," said Leonard.

Central Kalimantan is expected to develop further in the use of natural resources for community welfare and sustainable economic growth.

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