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

April 6, 2026

Malinau Regent Wempi W. Mawa revealed that the ongoing construction of the Mentarang hydropower plant is projected to become one of the largest energy suppliers for the Tanah Kuning-Mangkupadi Indonesia Green Industrial Park (KIHI) in Bulungan Regency, North Kaluimantan Province, and also for the needs of the Nusantara Capital City (IKN).

"Investment in the Mentarang hydropower plant is estimated to reach Rp 45 trillion, or around US$2.7 billion. We hope it will be fully operational in the next four to five years," he said.

Wempi added that the construction of this hydropower plant will not only support the national green energy ambition but will also drive the local economy. Malinau Regency, with its abundant water potential, has strategic importance as a renewable energy hub in the border region of Kalimantan Island.

"The previous president conducted a groundbreaking ceremony for this hydropower plant. Its primary energy source comes from Malinau. If managed well, it will not only support IGIP and IKN, but also create new economic opportunities for the local community," he explained.

Wempi also highlighted the importance of spatial and environmental management. The Malinau Regency Government is working to ensure that communities affected by the hydroelectric power plant construction receive protection and a proper relocation scheme.

"Our main issue is the communities living in inundated areas. We will coordinate with the Agrarian Affairs and Spatial Planning Ministry and the Forestry Ministry to ensure everything runs according to regulations," he emphasized.

The regional government hopes for support from the central government so that all national strategic projects (PSNs) in Malinau can be implemented on schedule.

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