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

May 23, 2025

Bank Indonesia held a business forum titled "Sustainable Growth Through Connectivity: Unlocking Indonesia's Green Investment Opportunities" on May 12, 2025, which is part of the Bank Indonesia Special Week series at the World Expo 2025 Osaka in Japan from May 5 to 18, 2025.

The event aims to encourage investment in the green energy sector, sustainable agro-industry, food downstreaming, and digital technology by introducing 10 sustainable projects that are the main attractions for foreign/global investors. The BI business forum was attended in-person by Japanese investors at the Indonesian Pavilion of the World Expo 2025 Osaka.

The business forum was opened by BI Senior Deputy Governor Destry Damayanti, Indonesian Ambassador to Japan Mr. Heri Akhmadi, and Investment and Downstream Ministry/Investment Coordinating Board (BKPM) Macroeconomics Expert Staff Imam Soejoedi.

A Letter of Intent (LoI) was also signed during the forum by potential Japanese investors for two investment projects in South Kalimantan Province, namely the Integrated Milkfish Cultivation and Canning Industry project in Tanah Bumbu Regency by Make Moment Production, and Hospital Toxic and Hazardous Waste Management System in Banjarbaru City by Takashima Eisei Co., Ltd.

"We welcome the promotional activities in Osaka, Japan and investor interest in the milkfish and toxic and hazardous waste investment projects in South Kalimantan. This is in line with the government's Astacita in achieving 8 percent economic growth and at the same time supporting efforts to realize food security in South Kalimantan," Acting South Kalimantan Province Regional Secretary Muhammad Syarifuddin, who is also the head of the South Kalimantan Regional Investor Relations Unit (RIRU) Investment, Trade, and Tourism Relations Unit (Intan) said.

BI South Kalimantan Representative Office Head Fadjar Majardi stated, “Japanese investors’ interest in two investment projects in South Kalimantan is a good initial step. RIRU Intan South Kalimantan is ready to facilitate and will oversee the realization of the LoI. In the future, South Kalimantan RIRU Intan will continue to strengthen investment promotion efforts, especially to investors from Japan, China, ASEAN, England, and the United States. This is expected to support efforts to realize a high-growth, inclusive, and sustainable South Kalimantan economy.”

The signing of the LoI further complements South Kalimantan RIRU Intan’s achievements that have been obtained at various previous promotional events, both domestically and abroad. In addition to the LoI signing activity, a hybrid business matching activity was also carried out on both projects to offer the investment projects to 10 ten potential investors.

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