Province

East Kalimantan

Overview Economy

East Kalimantan, future center of governance

East Kalimantan, situated on the eastern coast of Borneo, is a province known for its diverse natural and cultural heritage. With a total area of 129,000 square kilometers, the province is home to a population of 4.91 million people as of 2023, with the majority identifying as Muslims.

Influenced by centuries of migration, trade, and indigenous customs, East Kalimantan is a cultural melting pot inhabited by numerous ethnic groups, each with its own language, customs, and rituals. Among these ethnic groups are the Daya, Kutai, and Bugis people. Notably, the Dayak people offer insights into Borneo’s ancient past through their traditional longhouses, wood carvings, and spiritual beliefs. Conversely, the Kutai people provide insights into the region's marine heritage, given their historical significance as one of Indonesia's oldest kingdoms. In addition, the province's cuisine, architecture, and cultural practices reflect centuries of cross-cultural interaction, influenced notably by Bugis traders and settlers.

East Kalimantan’s capital, Samarinda, is home to notable locations such as the Mulawarman Museum, which displays relics spanning the region’s prehistoric, colonial, and modern eras. Additionally, Tenggarong's Kutai Sultanate Palace, with its ancient relics and traditional architecture, provides a glimpse into the kingdom's royal past.

Apart from its cultural heritage, East Kalimantan is well-known for its natural diversity, encompassing vast rainforests, rivers, wetlands, and diverse fauna. The province is home to one of Indonesia's largest protected areas, the Kutai National Park, which harbors a variety of plant and animal species, including clouded leopards, sun bears, and orangutans. Moreover, East Kalimantan hosts the Mahakaman River, the province’s longest river, which serves as a vital resource for irrigation, transportation, and fishing, sustaining surrounding villages.

Show more

Economic development

In terms of its Gross Regional Domestic Product (GRDP), East Kalimantan has been dependent on the mining sector, accounting for Rp 227 trillion (43.19 percent) in 2023 and Rp 235 trillion (53.18 percent) in 2022 of that respective year’s GRDP, followed by the processing industry sector with Rp 104 trillion (17.73 percent) in 2023 and Rp 99 trillion (15.04 percent) in 2022.

This positive economic growth is closely tied to the success of the provincial authority in attracting investments into the province, which amounted to Rp 71.89 trillion in 2023, surpassing the initial target of Rp 64.5 trillion. Out of this total figure, foreign investment contributed up to Rp 19.72 trillion (27.43 percent), while domestic investment reached Rp 52.17 trillion (72.57 percent).

Subsequently, the influx of investment in 2023 propelled the province into the top four provinces for domestic investment, following Jakarta, West Java, and East Java, while it ranked tenth in terms of foreign investment destinations.

Notably, East Kalimantan is home to the Nusantara Capital City (IKN), poised to become Indonesia’s new capital city. Currently undergoing development, the IKN has initiated various construction projects, thereby contributing to the province’s construction sector. One such project includes state-owned energy company PT Pertamina’s Refinery Development Master Plan (RDMP). Additionally, the IKN’s development has contributed to the electricity and gas procurement sector, as well as the monetary and insurance services sector in East Kalimantan.

Show more

Latest News

October 1, 2025

Realized investments to East Kalimantan Province for this year soared to Rp43.47 trillion in the second quarter (Q2) of 2025 out of the Rp79.86 trillion annual target set by the Investment and Downstream Ministry. The East Kalimantan Investment and Integrated One-Stop Services Office (DPMPTSP) is optimistic that the province will achieve said target by the fourth quarter (Q4) of 2025.

The East Kalimantan Provincial Government acknowledged the fact that the province hosted the Nusantara Capital City (IKN) project helped the region attract investors. However, East Kalimantan DPMPTSP Head Fahmi Prima Laksana revealed that several challenges for investment remain, noting the need for strong synergy from all stakeholders to achieve the province's annual investment target.

"We should be grateful for this achievement, but we must not become complacent as there are still challenges that we need to overcome together to make the investment climate in East Kalimantan more welcoming and competitive," Fahmi emphasized at the High-Level Meeting of the East Kalimantan Regional Investor Relations Unit (HLM-RIRU) at the Mercure Hotel in Samarinda City, East Kalimantan on Sep. 29, 2025.

Fahmi highlighted two of the most pressing issues that often make investors think twice about investing, which are the issue of suboptimal accessibility and infrastructure required to support investments as well as the issue in the provision clear and clean (CnC) land.

"Accessibility is still a major complaint from investors. Likewise, the issue of clear and clean land needs to be improved," He said.

In addition, Fahmi noted that other issues which must be addressed include suboptimal information on investment potential at provincial and regency/city levels, along with ineffective coordination between the central, provincial, and regency/city governments.

Investment promotion efforts in East Kalimantan is not yet comprehensive according to the official, and dynamic licensing regulations are not sufficiently adaptive to changes. Moreover, investment incentives are not fully utilized by investors, the low competitiveness of East Kalimantan's leading economic sectors.

Furthermore, there are challenges for investment due to the limited number of local workers with appropriate skills to serve potential investments, along with the low number of supporting tourism services.

Read more
August 4, 2025
July 2, 2025
June 9, 2025
May 14, 2025
April 23, 2025
April 7, 2025
March 17, 2025
February 26, 2025
Load more