Province

South Kalimantan

Overview Economy

South Kalimantan, thousands of rivers province

Located on Borneo island, South Kalimantan is home to a population of 4.23 million people as of 2023. The province serves as a melting pot, housing various ethnic groups, including the Dayak and Banjar people. The Banjar people comprise the largest ethnic group in South Kalimantan. Additionally, the province is characterized by diverse religious beliefs, with Islam being the predominant faith adhered to by the population.

Culturally, the province’s richness and diversity are influenced by Arab, Chinese, and Malay cultures, which have been integrated into South Kalimantan through the province’s history as a trading hub of Indonesia. Regarding trade, the province’s Martapura River, known as the River of Diamonds, has been a center of commerce for centuries, featuring bustling floating markets.

Among South Kalimantan’s notable cultural landmarks are the Sultan Suriansyah Mosque and the Kambang Palace in Banjarmasin, which offer glimpses into the region’s past. Additionally, traditional villages such as the Nagara and Sungai Tabuk village allow visitors to witness age-old customs and craftsmanship firsthand.

Besides its cultural richness, South Kalimantan is blessed with natural beauty that includes extensive river systems such as the Barito and Martapura Rivers, as well as mountains and forests. Notably, the province is home to the Tanjung Puting National Park, home to endangered species such as orangutans, proboscis monkeys, and pygmy elephants.

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Economic sector

As of 2023, South Kalimantan’s economy is mainly contributed by the mining sector, which recorded a Gross Regional Domestic Product (GRDP) of Rp 36 trillion or 24.4 percent of the total GRDP. Following closely behind is the agriculture, forestry, and fishery sector with Rp 19 trillion or 13.07 percent, and the processing industry with Rp 18 trillion or 12.32 percent.

The province has also seen a positive trend in terms of investment, generating Rp 19 trillion throughout 2023, which surpasses the initial target of Rp 16.2 trillion. Of this investment, Rp 14.9 trillion came from domestic sources in the form of 6,697 projects, while Rp 4.8 trillion originated from foreign sources in the form of 836 projects.

Despite positive progress in its investment, South Kalimantan has experienced fluctuations in economic growth in the past few years, with growth rates of 3.48 percent in 2021, rising to 5.11 percent in 2022, and then slightly decreasing to 4.84 percent in 2023. Nevertheless, opportunities for South Kalimantan to bolster its economic growth are available, notably through the Nusantara Capital City (IKN) in the neighboring province of East Kalimantan.

Moreover, other economic opportunities are presented in several national strategic projects (PSN) that are being built in the province, such as the Tapin Dam and the Balikpapan-Samarinda toll road. Additionally, the province is set to develop industrial areas in Batulicin, Jorong, Banjarmasin, and Tapin, as well as the Mekar Putih special economic zone (SEZ) in Kotabaru.

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Latest News

January 13, 2025

There are 835 investment projects to South Kalimantan Province that have been realized as of the third quarter (Q3) of 2024, with domestic invesments accounting for 650 projects worth nearly Rp5.35 quadrillion combined while foreign investments made up 185 projects worth €315,794 together.

The total investment to the province reached Rp18.13 trillion, close to the annual target of Rp19.10 trillion. The mining sector is still the favorite sector for investment to the province.

"We have achieved 96 percent of the target," said South Kalimantan Province Investment and One-Stop Integrated Service Office (DPMPTSP) Secretary Fitridani on Jan. 3, 2025. She is also confident that the target had been achieved in the fourth quarter (Q4) of 2024.

Previously, Acting South Kalimantan Governor Muhidin requested that investment to South Kalimantan are done to labor-intensive industries.

"Labor-intensive [industries] are beneficial, especially in the regencies of Tanah Bumbu, Kotabaru, and Tabalong," he said.

Muhidin added that the South Kalimantan DPMPTSP also fosters local investment potential, such as through the E-Pro Investment program.

"We created E-Pro Investment to explore [investment potential by leveraging] the regional government budget and regional assets, [then we] lobby the central government," he explained.

One of the leading projects is the E-Pro snakehead murrel fish project in Tanah Bumbu Regency.

"The [project's] potential is great, it can attract investors," he concluded.

Until September 2024, total investment in South Kalimantan reached IDR 19.10 trillion. PMDN contributed IDR 12.185 trillion from 8,255 projects. PMA recorded IDR 5.950 trillion from 884 projects.

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