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

June 17, 2025

In a strategic meeting held at Bank Negara Indonesia (BNI)'s Center of Digital Assessment and Evaluation (CODAE) in South Jakarta Administrative City, Jakarta Special Capital Region (DKI) on May 23, 2025, PT TRK Holding signed a memorandum of understanding (MoU) for cooperation in the construction of a  high-pressure acid leach (HPAL) cobalt smelter with Chinese company Guangzhou Industrial Investment Holdings Group (GIIHG).

The meeting was attended by Investment and Downstream Minister/Investment Coordinating Board (BKPM) Rosan Perkasa Roeslani, Central Sulawesi Governor Anwar Hafid, and TRK Holding Chief Executive Officer Najmuddin.

"We really appreciate this effort. This investment will have a significant impact on the national economy, especially in supporting the downstream industry development program and strengthening the battery industry," he said.

Meanwhile, Najmuddin divulged that the Indonesian government has strongly supported the project's realization.

"We have seen that the government is very respectful and open to the HPAL cobalt [smelter] development. The investment that we are exploring with partners from China is worth around Rp87 trillion. The focus is on Central Sulawesi and Southeast Sulawesi," he said.

Najmuddin is optimistic that the investment will support the Prabowo Subianto administration's strategic program on encouraging mineral downstream industry development and creating jobs for the people.

"We want this investment to provide great benefits for the nation and the state," he said.

Meanwhile, Central Sulawesi Governor Anwar Hafid stated his province's readiness to support the investment's realization.

"Central Sulawesi is open to supporting companies that invest. Moreover, the HPAL cobalt [smelter] is very much needed by the world's battery sector," he said.

In the meantime, GIIHG representative Jing Si expressed his gratitude for the opportunity provided to the company to invest in Indonesia.

"We are very grateful for this trust. We are committed to supporting the development of strategic industries in Indonesia," he concluded.

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