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.

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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.

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Latest News

March 17, 2025

East Kalimantan Province recorded an investment realization of Rp76.33 trillion, or 100.41 percent of the target set for 2024. East Kalimantan Province Investment and One-Stop Integrated Services Office (DPMPTSP) Head Fahmi Prima Laksana stated that the number of realized investment projects was also quite significant, reaching 24,743 projects.

Domestic investment dominates with an investment value of Rp55.07 trillion from 15,390 projects, placing East Kalimantan in 5th place nationally for domestic investment realization. Meanwhile, foreign investment recorded an investment value of US$1.417 billion from 1,727 projects and placing East Kalimantan in 14th place nationally.

The mining sector is still the top for domestic investments with a realization value of Rp20.98 trillion, then the basic chemical industry, chemical goods and pharmaceuticals followed with an achievement of Rp8.5 trillion. They are followed by the basic metal industry, non-machine metal goods and equipment with Rp6.96 trillion, food crops, plantations and livestock with Rp3.81 trillion, and the food industry with Rp3.57 trillion.

Furthermore, Fahmi said that the distribution of domestic investment in East Kalimantan is concentrated in several regencies and cities. Balikpapan City is the leader with an investment value of Rp21.3 trillion from 7,575 projects, followed by Kutai Kartanegara Regency with Rp8.34 trillion from 3,563 projects, West Kutai Regency with Rp6.85 trillion from 1,168 projects, East Kutai Regency with Rp5.16 trillion from Rp1,795 projects, and Samarinda City with Rp3.04 trillion from 6,185 projects.

For foreign investments, Kutai Kartanegara leads with an investment value of US$537.93 million from 305 projects, followed by Balikpapan City with US$293.57 million from 1,265 projects, East Kutai Regency with US$285.53 million from 272 projects, Paser Regency US$75.08 million from 83 projects, and Berau Regency with US$63.78 million from 176 projects.

Singapore and Malaysia dominate un terms of foreign investment country of origin, with Singapore recorded to invest US$275.12 million (about Rp4.12 trillion) from 831 projects and having 19.41 percent of the foreign investment share. Malaysia followed with US$266.76 million (about Rp4 trillion) investment value from 437 projects, or 18.82 percent of total foreign investments. Other countries that also significantly invested in East Kalimantan include China, Spain, and South Korea.

Fahmi said that the investment into East Kalimantan also had a positive impact on job creation. In total, domestic and foreign investment created employment for 70,419 workers, with a breakdown of 57,002 jobs from domestic investment and 13,417 jobs from foreign investment.

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