Province

East Kalimantan

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

June 9, 2025

East Kalimantan Governor Rudy Mas'ud (Harum) and Deputy Governor Seno Aji received a visit from Taiwanese entrepreneurs led by Taipei Economic and Trade Office (TETO) Representative Office Head Bruce Cen Jung Hung. Seno explained various facilities and potential investment opportunities in East Kalimantan to the TETO delegation. He also detailed various transportation infrastructures supporting investment to the province.

"East Kalimantan has other advantages in the fields of political stability and security," said Seno at the East Kalimantan Governor's Office on May 16, 2025.

Another advantage is the abundant natural resources across East Kalimantan. Moreover, the development of the Nusantara Capital City (IKN), which the province envelops, has caused a very large amount of development funds to enter East Kalimantan.

"Another advantage is East Kalimantan's location on the ALKI (Indonesian Archipelagic Sea Lane) II route that connects Australia directly to China," Seno elaborated.

Moreover, he noted that the potential for downstream industries in East Kalimantan is available in several regencies and cities in the province. For example, East Kutai has potential in palm oil and bananas, some of which are currently exported abroad, while West Kutai has the potential for a durian processing industry.

"Taiwanese entrepreneurs can [also] develop a rubber processing industry in West Kutai," said the Deputy Governor.

Meanwhile, the quartz sand industry in Kutai Kertanegara is among the investment opportunities that are in demand, with the commodity predicted to reach hundreds of billions of tons in demand. Thus, the regency has the potential for the development of a silicon factory.

"We are very interested in the quartz sand investment plan, it is very important for our induestries. I also hope to continue further communication, because we need it quickly," said one of the Taiwanese businesspeople.

In addition, the Mahakam Ulu Regency, which has a border with Malaysia, has the potential for chocolate development, while Bontang Regency already has palm oil downstreaming. Taiwanese entrepreneurs can create a new palm oil processing industry and other opportunities for the fish canning industry. The last downstreaming potential presented by Seno Aji is North Penajam Paser Regency, which directly borders the IKN.

"In North Penajam Paser, there is potential for the development of an animal feed industry, cattle farming, and others," explained the Deputy Governor.

After listening to Seno's presentation, the Taiwanese businesspeople in general admitted that they were happy to see the availability of many business opportunities in East Kalimantan. Several of them admitted that they wanted to do business manufacturing wood into furniture, while others are more focused on plans to develop green energy. There are also some potential Taiwanese investors who are interested in doing business in the fields of education and health.

"East Kalimantan is in my heart. I want to work with East Kalimantan again in various potential [investments]," said Iwan, one of the bankers who participated in funding the construction of the Fugo Hotel a decade ago.

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