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

December 12, 2024

North Kalimantan Province Regional Secretariat Acting Economic and Development Affairs Assistant Burhanuddin, representing North Kalimantan Governor Zainal A. Paliwang, opened the "Tanah Kuning Industrial Park Regional Infrastructure Development Plan Workshop," at the Grand Pangeran Khar Hotel in Bulungan Regency, Borth Kalimantan on Dec. 10, 2024.

"As one of the strategic areas of North Kalimantan Province listed in the 2017-2037 North Kalimantan Province Regional Spatial Plan, the Tanah Kuning Industrial Estate has been designated as a National Strategic Project (PSN) since 2018," he said.

The designation was based on Presidential Regulation No. 56/2018 on the Second Amendment to Presidential Regulation No. 3/2016 on the PSN Implementation Acceleration, most recently elaborated through the Coordinating Economic Ministerial Regulation No. 12/2024 on the PSN List.

Afterwards, the government, through Coordinating Economic Minister Airlangga Hartato, assigned four companies to manage the area. They includ PT. Kalimantan Industrial Park Indonesia (KIPI), PT. Kayan Patria Propertindo (KKP), PT. Indonesia Strategic Industry (ISI), and PT. Kawasan Industri Kalimantan Indonesia (KIKI).

"That is the government's effort to accelerate the realization of the Tanah Kuning Industrial Estate, which will have an important role in creating jobs and contributing to North Kalimantan's economic growth, especially Bulungan Regency," he said.

Burhanuddin hopes that the workshop can be a means of fostering communication between stakeholders of the PSN, especially in terms of conveying each managing company's progress and the development of the industrial area based on the master plan that has been prepared.

"The workshop is expected to be a means to produce a comprehensive infrastructure and regional work program, specifically in the Tanah Kuning Industrial Estate and its surroundings," he concluded.

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