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

March 20, 2025

Central Sulawesi Deputy Governor Reny A. Lamadjido went to a meeting at the Investment and Downstream Industry Ministry/Investment Coordinating Board (BKPM) Office in Jakarta Special Capital Region (DKI) on Mar. 18, 2025. She was welcomed by the Investment and Downstream Industry Minister/BKPM Head Rosan Perkasa Roeslani along with officials from the Finance Ministry.

The meeting was also attended by the North Maluku Governor Sherly Tjoanda and Southeast Sulawesi Governor Andi Sumangerukka. It aims to encourage investment optimization by increasing locally-generated revenue (PAD) from smelter industrial areas in the three provinces and strengthening cooperation with the central government in the distribution of revenue sharing funds (DBH) from the state budget.

The meeting is an initiative of the three provincial governments, which have the largest nickel reserves in Indonesia. Rosan and the Finance Ministry officials welcomed the initiative, as they considered that it could increase PAD from nickel smelter industrial areas based on investment and development of downstream industries for natural resources sectors, or 'downstreaming'.

As a follow-up, Rosan requested that the three provincial governments immediately submit Work and Budget Plans (RKAB) as an important reference in discussions with related ministries. Meanwhile, the Finance Ministry officials emphasized that distribution of DBH was carried out in line with applicable provisions, but also ensured that DBH is the right of producing regions and its disbursement will not be delayed.

In response, Reny expressed her appreciation for the various inputs and recommendations provided participants to the meeting. She added that the Central Sulawesi Provincial Government had completed the RKAB document to be discussed immediately with related ministries.

In addition to focusing on nickel downstreaming, Reny also highlighted other potential sources of PAD, such as surface water tax, heavy equipment tax, and fuel tax, which are could provide great benefits for the development and welfare of the Central Sulawesi people.

"Downstreaming is a major step to increase regional income, create jobs, and support the Gold Indonesia grand vision," she stated.

Reny was accompanied by officials from several from the Central Sulawesi Provincial Government apparatus, including the Central Sulawesi Regional Financial and Asset Management Agency (BPKAD), the Central Sulawesi Regional Revenue Agency (Bapenda), and the Central Sulawesi E-Service.

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