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 22, 2025

Bulungan Regent Syarwani explained that Bulungan Regency has exceeded the Rp11 trillion investment target set by the North Kalimantan Provincial Government for 2024.

"The report from the Head of the PMPTSP Office, Investment realization has reached Rp13 trillion [according to the report from] the Bulungan Regency DPMPTSP (Investment and One-Stop Integrated Services Office)," revealed Syarwani on the sidelines of the signing of the memorandum of understanding (MoU) with tenants at the Bulungan Public Service Office (MPP) on Apr. 21, 2025.

However, he added that the Bulungan Regency Government will adjust the additional investment target for 2025 based on the regency's capabilities. Nevertheless, Syarwani is optimistic that the MPP will provide investors with convenience in the licensing process, which is expected encourage investment growth in the region.

"Just imagine, before the MPP or DPMPTSP Bulungan, investors had to come to offices across the regency to take care of licensing. Now it could be done more efficiently in one place," he explained.

Syarwini divulged there are several investor activities that contribute to investment in the region, including to the Tanah Kuning-Mangkupadi green industrial area or the Indonesia Green Industrial Park (KIHI) in Tanjung Palas Timur District, Bulungan Regency managed by PT Kalimantan Industrial Park Indonesia (KIPI).

"The KIHI is national strategic project (PSN) has contributed Rp2 trillion [towards overall investments to Bulungan Regency]," he said.

In addition to large-scale investors, several small and medium enterprises (SMEs) also contribute to the realization of the region's investment targets.

"For example [of a major domestic investor, there is] PT KIPI. There are also several [KIHI] tenants that come from abroad, such as from China," said Syarwani.

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