Province

North Kalimantan

Overview Economy

North Kalimantan, diversity in numbers

Situated on the island of Borneo, North Kalimantan is a province formed in 2012 under Law No. 20/2012 on the Establishment of North Kalimantan Province to reduce development disparities from East Kalimantan. The capital of North Kalimantan is Tanjung Selor, located on the eastern coast of the province. Meanwhile, the largest city, Tarakan, serves as the financial center.

Covering 70,101 square kilometers, North Kalimantan consists of four regencies and one city. It was once dubbed as the least populous province in Indonesia, prior to the creation of South Papua in 2022. As of 2023, however, it is estimated that North Kalimantan had a population of 730,010 people, representing various ethnicities including indigenous Kalimantan people such as Dayak, Tidung, Malay, Kutai, and Banjar, as well as migrant groups such as Bugis, Javanese, Bajau, Manjar, Minahasa, Buton, and Gorontalo. Other ethnic groups such as the Madurese, Makassar, Toraja, Chinese, Bawean, Balinese, and Suluk/Tausug people also reside in the province.

Based on the 2023 Census, North Kalimantan is home to 73.36 percent of the Muslim population, followed by 26.02 percent of Christians, where 19.44 percent are Protestants and 6.58 percent are Catholics. Most of the Christian population in North Kalimantan resides in Malinau. The remaining religious groups in the province are 0.54 percent Buddhists, 0.05 percent Hindus, 0.02 percent Konghucu, and 0.01 percent indigenous faiths.

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North Kalimantan’s economy and leading sectors

North Kalimantan has seen a positive increase in the province’s economy. According to data from the North Kalimantan Central Statistics Agency (BPS), the province’s economic growth in the fourth quarter of 2023 experienced a growth of 4.94 percent, making it the second-highest economic growth on the island of Kalimantan. Furthermore, the province’s Regional Gross Domestic Product (GRDP) in 2022 amounted to Rp 66 trillion with contribution from the mining sector quoted as the largest at Rp 17 trillion.

The province’s geographical condition also benefits the province in developing its fisheries sector, utilizing its marine resources and abundant fish cultivation for both domestic consumption and overseas export. Consequently, this sector, which also includes forestry and agriculture, has contributed to North Kalimantan’s economic growth, with a contribution of Rp 11 trillion to the province’s 2022 GRDP.

Furthermore, North Kalimantan has recorded potential in its exports. In 2021, the province exported a total of 20.8 million tonnes valued at US$164 billion. The majority of this amount, accounting for 20.7 million tonnes, comprised mineral fuels, mineral oils, and their distillation products, bituminous substances, and mineral waxes, totaling US$163.8 billion. Tobacco and manufactured tobacco substitutes came next, totaling 16,275 tonnes worth US$134 million, followed by fisheries at 12,209 tonnes with a value of US$28.7 million.

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Latest News

October 29, 2024

Permodalan Nasional Madani (PNM), through its Tarakan City branch in North Kalimantan, continues to demonstrate its commitment to empowering micro, small and medium enterprises (MSMEs), particularly in the country's border areas. This time, Sebatik District in Nunukan Regency, North Kalimantan, which shares a border with Malaysia, has become PNM's focus for providing financial training to local residents.

The Merdeka dan Berdaya (Free and Empowered) Phase III program is one of PNM's initiatives aimed at enhancing the competitiveness and business resilience of the villagers in Nunukan. Attended by 51 PNM Mekaar customers, this training is expected to prepare them to face cross-border market challenges and spark innovation among border MSMEs.

"We want these border MSMEs not just to survive, but to thrive and become key players in trade within this strategic area. We encourage our business actors to be more confident and ready to seize opportunities and face competition," said PNM president director Arief Mulyadi.

Located at the northern tip of Kalimantan, Nunukan regency is not only home to natural beauty but also significant economic potential. Bordering the state of Sabah, Malaysia, Nunukan is a crucial point for international trade. Furthermore, the unique Sebatik district, part of which borders Malaysia, serves as a hub for cross-border economic interaction.

"Cross-border market accessibility and competition require a strong strategy. We hope that by starting with a solid understanding of financial management, business actors in this area can tap into their potential, increase productivity and expand their market both locally and internationally," Arief explained.

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