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

January 15, 2025

PT PLN (Persero), through its PLN Sulawesi Main Development Unit (UIP) and PT Prima Layanan Nasional (PLN) Enjiniring subsidiary has completed the construction of the 40 megawatt (MW) Luwuk gas turbine power plant (GTPP) in Batui District, Banggai Regency, Central Sulawesi Province. The plant is capable of supplying electricity to more than 30,000 homes and 30 MW of industry in the area.

PLN Project Management and New and Renewable Energy Director Wiluyo Kusdwiharto stated that the project's completion is a step towards ensuring a reliable and sustainable energy supply for the people of Central Sulawesi, especially Luwuk-Toili area and its surroundings.

"This is our commitment to supporting economic growth and energy sustainability in Indonesia," said Wiluyo in a written statement on Jan. 14, 2025.

Banggai Regent Amirudin Tamoreka gave his appreciation for PLN's efforts to finish the 40 MW Luwuk GTPP. He added that the power plant's presence will further increase the Central Sulawesi electricity system's reliability, especially in Banggai Regency.

"Thank you to PLN for continuing to improve the electricity system by building a 40 MW natural gas (natgas)-fueled power plant. Now, Banggai Regency will be even brighter," Wiluyo said.

Meanwhile, PLN Enjiniring President Director Chairani Rachmatullah said that the project's completion would strengthen PLN Group's role in supporting the provision of more efficient, environmentally friendly, and affordable energy in Indonesia. He added that the power plant's operation will increase the natgas portion of Indonesia's energy mix and is projected to reduce the country's carbon emissions by up to 75,000 tons of carbon dioxide CO2 per year.

"PLN Enjiniring is committed to continue supporting equal access to energy and contributing to national economic development through sustainable energy solutions," said Chairani.

PLN UIP Sulawesi Acting General Manager Budi Ari Wibowo explained that the Luwuk GTPP project's completion was marked by the issuance of operational eligibility certificates (SLO) for all gas turbines on Dec. 30, 2024.

"We are very proud to be able to complete the Luwuk GTPP project which has a strategic role in meeting energy needs in Central Sulawesi. This achievement cannot be separated from the support and collaboration of all parties involved," said Budi.

PLN has also just completed the construction of three other electricity infrastructures in Central Sulawesi. They are the 150 kilovolt (kV) Luwuk Primary Substation, the 150 kV Batui Primary Substation (PLTMG), and the 150 kV Luwuk GTPP (Batui) - Luwuk high voltage transmission lines.

As a result of PLN's constructions, Central Sulawesi's power supply capacity currently reaches 369 MW with a peak load of 336 MW and a power reserve of 33 MW. With the operation of these four electrical infrastructures, PLN hopes that the electricity supply for the people of Central Sulawesi, especially Luwuk - Toili, will be more reliable.

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