Province

Central Sulawesi

Overview Economy

Central Sulawesi, a rich mosaic of ethnic groups

Central Sulawesi is a province of Indonesia located in the center of Sulawesi Island. With a vast land area of 61,605.72 km², it surpasses all other provinces in size on the island. The administrative hub of Central Sulawesi is located in the city of Palu, which also holds the title of the province’s largest city. The province is home to a population of over 3 million individuals.

The province showcases a diverse tapestry of ethnicities, religions, and languages. The Kaili, constituting 22 percent, form the province’s largest ethnic group, closely followed by the Buginese with 16 percent and Javanese with 8.4 percent. While these three groups make up a significant portion of the population, the true diversity lies in the numerous smaller groups, collectively representing over a fifth or 22.5 percent of the population. This category includes the Pamona, Banggai, Saluan, Buol, Gorontaloan, and various other indigenous communities, each contributing their unique cultural heritage to the rich mosaic of Central Sulawesi. In addition to these ethnic groups, there are several tribes residing in the province’s mountainous areas, such as the Da’a tribe, the Wana tribe, the Seasea tribe, and the Taa tribe.

The religious landscape of Central Sulawesi is predominantly Islamic, with nearly 8 out of 10 residents, or 79.06 percent, adhering to this faith. Christianity closely follows at 16.17 percent, and Hinduism represents a smaller but noteworthy 3.5 percent of the population. Additionally, other smaller religious groups contribute to the province's diverse religious tapestry.

Despite the province boasting a diverse landscape, it has also grappled with periods of religious tension. The Poso conflict, which began in 1998 and continued until the early 2000s, was a complex issue driven by several factors, including political, social, and economic divides that existed before the violence. In addition to appreciating the tremendous efforts made in the years afterward to promote peace and reconciliation, it is crucial to commemorate this difficult period in Central Sulawesi's history.

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Economic condition

Central Sulawesi's economy has witnessed impressive growth in recent years, showcasing a diverse landscape. According to Statistics Indonesia, the province recorded a robust 15.22 percent growth in 2022, which later moderated to 11.91 percent in 2023 following global economic trends.

Despite the recent dip, Central Sulawesi boasts a well-rounded economy with several key contributors. The mining sector remains a dominant force, contributing 18.10 percent to the province’s gross regional domestic product (GRDP). Notably, Central Sulawesi is one of Indonesia's prominent nickel-producing regions, with Morowali Regency serving as the hub for nickel mining. Increasingly, international mining companies are eyeing Morowali, as its nickel reserves are vital for lithium battery production. The 2014 ban on raw nickel exports forced these companies to refine locally, boosting investments in Indonesian firms.

Other sectors, such as agriculture, contribute 7.20 percent to the GRDP. Central Sulawesi excels not only in agriculture, producing top-quality crops like cocoa and cloves, but also in the fishery sector, which contributes 9.09 percent to the GRDP. The province’s vast water sources, spanning 77,295.9 km², hold significant economic potential for the capture fishery sector. This diversification fosters a more resilient and sustainable economic base for the province's future.

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Latest News

September 22, 2025

The Daya Anagata Nusantara Investment Management Agency (BPI Danantara) has partnered with Chinese green metallurgy company GEM Co Ltd. to invest in a high-pressure acid leach (HPAL) nickel smelter with an estimated project value of US$1.42 billion (about Rp23.21 trillion), which is also being worked on in collaboration with Vale S.A. subsidiary PT Vale Indonesia Tbk.

The collaboration began with the signing of a heads of agreement (HoA) between Danantara and GEM. Danantara Chief Executive Officer Rosan Perkasa Roeslani, ex-officio Investment and Downstream Minister, explained that the HoA established the framework for a potential joint investment in a HPAL smelter designed to produce 66,000 tons of mixed hydroxide precipitates (MHP) per year. The smelter is targeted to begin commercial operations as early as next year.

"This project is estimated to be worth approximately US$1.42 billion and is expected to involve collaboration with PT Vale Indonesia Tbk., with potential participation from other global partners," he explained in a press release on Aug. 27, 2025.

Rosan stated that Danantara aims to advance the downstreaming agenda, along with sustainability and innovation, by partnering with global corporations operating in the green metallurgy sector.

"The integration of research and development, green energy, and closed-loop recycling represents the type of high-impact project that will create long-term value for Indonesia and our investment partners," he explained.

The long-term vision of the HPAL project goes beyond nickel processing to encompass cathode materials, battery cells, high-quality nickel plate, and heavy equipment manufacturing. Designed to operate on green energy and supported by a closed-loop recycling system, the project aims to integrate sustainability at every stage of production while strengthening Indonesia's long-term industrial competitiveness.

GEM Ltd.'s investment plan in Vale's HPAL smelter project in Indonesia began in mid-November 2024, after the two companies signed a US$1.42 billion project agreement. The deal was one of several signed by Chinese and Indonesian companies which were related to President Prabowo Subianto's state visit to Beijing, China following his inauguration last year.

GEM is set to own up to a 25 percent stake in the project while Vale will take 30 percent, with a third party appointed for the remainder. GEM and Vale units will also consider building an anode and precursor plant downstream.

In the meantime, GEM has also invested US$30 million to establish a state-of-the-art metallurgy research laboratory with Institute Teknologi Bandung (ITB) to strengthen Indonesia's role as a hub for research and development. Over the next five years, initiatives at the Kalimantan Industrial Park Indonesia (KIPI) aim to provid broad economic benefits by creating up to 80,000 new jobs.

Vale Indonesia previously stated that it was seeking new partners for the HPAL project in the Bahodopi District, Moroawali Regency, Central Sulawesi Province. The project was estimated to require an investment of around US$2 billion, which includes investment requirements for mine development. Currently, Bahadopi District the smelter project is operated by PT Bahodopi Nickel Smelting Indonesia, a joint venture between Vale Indonesia and GEM subsidiary GEM Hong Kong International Co. Ltd.

"The majority [owner] is still GEM. We're still looking for [partners for Bahodopi], still exploring possibilities," stated Vale Indonesia Head of Corporate Finance and Investor Relations Andaru Brahmono Adi to the media in Jakarta Special Capital Region (DKI) on July 18, 2025.

He added that the nickel exploration process with several potential partners is still ongoing, but no agreements have been signed as of July 18, 2025.

Vale Indonesia currently has three mining projects located in Bahodopi District, Morowali Regency, Central Sulawesi; Pomalaa District, Kolaka Regency, Southeast Sulawesi Province; and Sorowako Village, Nuha District, East Luwu Regency, South Sulawesi Province which also include the construction of HPAL facilities. The total investment value of the three projects is around US$8.5 billion.

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