Province

North Sulawesi

Overview Economy

Sulawesi - North Sulawesi

North Sulawesi is a province of Indonesia located on the northern tip of Sulawesi Island, covering approximately 14,500 square kilometers with a population of 2.6 million people. The province extends farther north than any other Indonesian island, with the small island of Miangas acting as its sentinel in the vastness of the sea. Manado, the crown jewel of North Sulawesi, not only serves as the province's capital and most populous city but also acts as its primary entry point and economic hub. The province’s administrative area is divided into 11 regencies and 4 cities.

North Sulawesi boasts a diverse tapestry of ethnicities, religious beliefs, and languages. The Minahasan ethnic group constitutes the largest portion of the population at 30 percent, followed by the Sangirese at 19.8 percent, the Mongondow at 11.3 percent, the Gorontaloan at 7.4 percent, and the Chinese at 3 percent. This diversity makes North Sulawesi more ethnically heterogeneous than other regions of Indonesia.

In terms of religious affiliation, Christianity is the predominant religion in North Sulawesi, comprising 62.91 percent of the population, followed by Islam at 31.85 percent. Catholics also hold a notable presence of 4.45 percent of the population, further enriching the province's religious landscape with other faiths. This diversity is mirrored in the province’s languages. While Indonesian is the official spoken language, many indigenous languages such as Minahasan and Sangir are still widely spoken, indicating the region's distinct cultural legacy.

Furthermore, North Sulawesi's rich tapestry of ethnicities, religions, and languages translates directly to its culinary scene, where each ethnic group contributes its culinary traditions and ingredients. From the Minahasan's penchant for spice to influences from Dutch traders, the province offers a plethora of unique dishes. Notable North Sulawesi dishes include Tinutuan, Klapertart (a Dutch-influenced cake from Manado), Ikan Fufu, and Dodol Amurang.

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Economic Condition

North Sulawesi boasts a vibrant economy. As of 2023, the province acquired Rp 102 trillion in Gross Regional Domestic Product (GRDP). Driving the province’s economic landscape is its robust trade sector, with wholesale and retail trade, including car and motorcycle repair, leading the way with a contribution of Rp 13.57 trillion. Agriculture closely follows, bringing in a significant Rp 13.38 trillion. Additionally, the food and beverage sector plays a key role, contributing Rp 9.06 trillion to North Sulawesi’s economy, while the fisheries sector also makes a substantial contribution of Rp 6.29 trillion to the GRDP.

In terms of agriculture, North Sulawesi is well known for its paddy production, with 59,000 hectares of rice harvested in 2022, resulting in 253,000 tonnes of rice produced. Apart from paddy, North Sulawesi also has potential in plantations and horticulture.

North Sulawesi’s extensive coastline positions the province as a treasure trove of marine resources. As part of Indonesia’s fisheries management area (WPPNRI), North Sulawesi boasts rich fishing grounds. This abundance has made the province a prime investment destination for those looking to tap into the region’s significant fishery potential, especially in tuna and skipjack species. The government of North Sulawesi aims to boost fishery productivity to meet local demands, aligning with the province’s fishing industry.

In addition to its economic achievements, North Sulawesi is also home to two special economic zones (SEZ), namely the Bitung SEZ and the Likupang SEZ. Furthermore, several national strategic projects (PSN) have been launched in the province, including the inaugurated Lolak Dam in Bolaang Mongondow Regency. The dam provides irrigation benefits covering an area of 2,214 hectares.

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Latest News

February 20, 2025

North Sulawesi Province recorded 5.39 percent economic growth in 2024, exceeding the national average of 5.03 percent. The province's gross domestic product (GDP) based on current prices reached Rp187.37 trillion in 2024 based on Statistics Indonesia (BPS) North Sulawesi Province data, while its GDP based on constant 2010 prices reached Rp107.58 trillion.

BPS North Sulawesi Head Aidil Adha stated although North Sulawesi's economic growth rate in 2024 fell from 5.48 percent in   in 2023, the province's economy continued to be in an upward trend. The North Sulawesi economy also grew by 6.45 percent quarter-to-quarter (qtq) in the fourth quarter (Q4) of 2024.

Aidil explained that the North Sulawesi's economic growth coincides with the seasonal pattern, with higher growth usually recorded in Q4 of a year compared to the third quarter (Q3). In addition, important sectors such as plantations, especially the cloves, coconut, cocoa, and patchouli industries, have contributed significantly to the province's economy.

The increase in electricity consumption throughout the year was also an important factor driving the economy. Electricity sales grew by 3.28 percent, mainly driven by the business and industrial segments which saw electricity consumption rise by 6.12 percent and 2.93 percent, respectively.

The government's policy in controlling inflation also had a positive impact, as reflected in the increase in the North Sulawesi people's purchasing power. Retail sales in North Sulawesi were recorded to have grown by 4.35 percent in 2024, while realized consumer loans rose by 7.96 percent in 2024.

In addition, the implementation of simultaneous regional elections in Q4 2024 also contributed to stimulating the local economy through campaign activities, campaign print media production, and various related activities.

Overall, North Sulawesi's economy continues to show solid performance despite a slight decline in growth year-on-year (yoy)  thanks to the success of the province's leading sectors and policies that support people's purchasing power.

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