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

April 28, 2025

Investment and Downstream Deputy Minister/Investment Coordinating Board (BKPM) Deputy Head Todotua Pasaribu conducted a work visit to Palu City, Central Sulawesi Province on Apr. 17, 2025 for a meeting with Central Sulawesi Governor Anwar Hafid that has 'Developing Investment Potential in Central Sulawesi,' as its agenda.

Afterwards, the deputy minister attended the 2025 Investment Realization Target Consolidation Meeting with regional government officials, including the heads of the Investment and One-Stop Integrated Service Offices (DPMPTSP) throughout the province. In addition, Todotua also visited to the Palu Special Economic Zone (SEZ) as part of an evaluation of infrastructure readiness and the potential for sustainable investment development in the area.

Todotua stated that the government is aiming for 8 percent national economic growth and realized investments targeted to reach Rp13.03 quadrillion by 2029. Of that figure, 86.65 percent is expected to come from private investments, with regional governments playing an important role in attracting direct investment.

"Central Sulawesi Province has shown extraordinary performance with investment realization of Rp139.88 trillion in 2024, exceeding its target by 128.27 percent and ranking second nationally in foreign investment," he added.

The largest contribution to the province's investment ralization came from the basic metal, chemical, pharmaceutical, mining, and industrial estate sectors. Morowali Regency is the main contributing region to investment realization through the development of nickel downstream industry and the electric vehicle battery ecosystem in the region. For 2025, the Central Sulawesi investment target was increased to Rp162.57 trillion, or 8.53 percent of the national target.

During the visit to the Palu SEz, Deputy Minister Todotua directly reviewed several companies engaged in the downstream sector, especially for the Buton asphalt and copper commodities, as well as the plantation sector for the pine resin commodity.

The companies are solid, liquid, and gas fuel wholesale trade company PT Asbuton Jaya Abadi with an investment value of Rp55.7 billion; pine resin processing company PT Hong Thai Internasional with an investment value of Rp26.15 billion; and copper smelting company PT Wanhong Nonferrous Recycling Utilization with an investment value of Rp296.2 billion.

"Investments are not just about numbers [in terms of profits and taxation], but also [about] their real impact on society, such as employment, economic equality, and welfare," said Todotua.

The work visit is an Indonesian government initiative to ensure the smoothness and sustainability of investment to the strategic area.

"We invite all stakeholders to make Central Sulawesi a model for investment synergy between the government, private sector, and society," Todotua concluded.

Central Sulawesi is expected to continue to be a driving force for national investment, while strengthening its contribution to driving inclusive and sustainable Indonesian economic growth.

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