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 9, 2024

State-owned energy enterprise Pertamina and the Japan Organization for Metals and Energy Security (JOGMEC) have announced the signing of a joint-study agreement (JSA) to strengthen cooperation in methane emissions measurement and quantification.

This synergy aims to conduct a comprehensive study to measure and quantify methane emissions from upstream oil and gas activities, as well as encourage efforts to reduce methane emissions in the Donggi-Matindok Block and JOB Tomori. The JSA embodies both parties’ commitment to addressing the important issue of reducing methane emissions in the energy sector to accelerate the energy transition and address climate change.

The JSA was signed at the AZEC Ministerial Meeting 2024 in Jakarta by Pertamina strategy, portfolio and business development director Salyadi Saputra, Pertamina EP Region 4 director Muhamad Arifin, JOB Pertamina Medco E&P general manager Tomori Sulawesi Andry, as well as JOGMEC board member and executive vice president Hiroyuki Mori.

The JSA is a continuation of the memorandum of understanding (MoU) that was previously signed at the ASEAN-Japan Economic Co-Creation Forum, which was held on the sidelines of the Asia Zero Emission Community (AZEC) Ministerial Meeting 2023 in Tokyo.

Emphasizing the importance of this collaboration, Salyadi said that the MoU’s signing marks Pertamina's step forward to achieve net-zero emissions (NZE) by 2060 or sooner. Accurate measurement of methane emissions is very important because methane has 28 times greater potential to trigger global warming than carbon dioxide, so reducing emissions is important for Pertamina to mitigate climate change.

"The partnership with JOGMEC will support us in aligning with global best practices and improving Pertamina's ability to manage methane emissions," he explained.

Pertamina corporate communications VP Fadjar Djoko Santoso stated that Pertamina was the first Indonesian company to join the Oil & Gas Methane Partnership 2.0 (OGMP 2.0), a global initiative for reporting and mitigating methane gas and Pertamina's collaboration with JOGMEC reflects Pertamina's commitment to reducing methane emissions.

"We hope to increase collaboration in the future to encourage sustainable business [practices] across Pertamina's businesses. Pertamina can lead the management of methane gas by synergizing with industry leaders and adopting new technologies, which could ultimately support [the realization of] Indonesia's [Paris Agreement-based] nationally determined contribution [NDC] for the energy sector," he added.

Hiroyuki Mori is enthusiastic about the collaboration between Pertamina and JOGMEC, with both parties having long synergized in the development of energy resources with a good relationship.

"We look forward to working together through this JSA on this challenging project related to methane emission management in the natural gas value chain. Through this project, we will conduct a study on effective ways to reduce methane emissions by using methods in line international standards and based on actual conditions in Southeast Asia," he said.

The ongoing cooperation between Pertamina and JOGMEC as part of AZEC highlights the commitment of both parties to facing global environmental challenges and moving toward a sustainable future. The AZEC meeting is an important forum for discussion, as well as advancing decarbonization and energy transition efforts.

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