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

March 28, 2025

Indonesia and Japan have agreed through the signing of the Letter of Intent (LOI) in Implementing the Kayan Hydropower Project on Feb. 28, 2025, to encourage sustainability in the development of the Kayan Hydropower Plant in Peso District, North Kalimantan Province in support of Indonesia's clean energy transition.

The signing of the LOI was carried out by the Coordinating Ministry for Economic Affairs Economic Cooperation and Investment Deputy II Edi Prio Pambudi and the Japanese Ministry of Economy, Trade, and Industry (METI) Deputy Commissioner for International Affairs Masanori Tsuruda.

Edi said that the Kayan HPP project is one of several initiatives which are being or will be implemented by Indonesia to support the achievement of its net zero emission (NZE) commitment by 2060.

"For Indonesia, the Kayan HPP is not just an infrastructure project within the AZEC (Asia Zero Emission Community) framework. This project is [also] a strategic investment for Indonesia's energy security and decarbonization efforts," he said through a written statement on Mar. 4, 2025.

Edi also emphasized the importance of Japan's role as a strategic partner in implementing energy transition policies and projects in Indonesia. The Indonesian government encourages Japan to strengthen cooperation in implementing practical, scalable, and inclusive energy transition projects.

Meanwhile, Masanori said that the milestone that is the signing of the Kayan HPP LOI needs to be followed-up by Indonesia and Japan to realize the HPP's construction.

"The challenges to build the Kayan HPP are not easy [to overcome], but we are confident that the good bilateral relationship between Japan and Indonesia is a strong foundation for the Kayan hydropower project," he elaborated.

The Kayan HPP project is one of several projects in the AZEC framework, a platform for cooperation towards carbon neutrality or NZE in the Asian region.

At the 2024 Expert Group Meeting, the Kayan HPP was designated as a category II project, or a potential project that is ready to be commercialized but is still in the feasibility study stage, along with the peatland management project and the Java-Sumatra transmission network.

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