Province

South Kalimantan

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

July 21, 2025

South Kalimantan Province recorded its economy growing 4.81 percent year-on-year (yoy) in the first quarter (Q1) of 2025. Finance Ministry Taxation Directorate-General (DJT) South Kalimantan Regional Office Head Catur Ariyanto Widodo emphasized that the achievement reflected the province's economic responsiveness to external dynamics.

"This demonstrates South Kalimantan's success in maintaining stability and stimulating domestic economic activity," he stated in Banjarmasin City, South Kalimantan on July 2, 2025.

The mining and quarrying sector is the most prominent business sector for South Kalimantan's economic growth in Q1 2025, contributing 28.33 percent to the province's total gross domestic product (GDP). Furthermore, household consumption remains the largest driver of growth, with is contribution of 48.55 percent to the province's GDP indicating that the local public purchasing power and confidence in future economic prospects were both maintained.

"By strengthening leading sectors and consistently growing public purchasing power, South Kalimantan demonstrates strong adaptability and competitiveness in maintaining the momentum of economic growth," Catur added.

He also noted that South Kalimantan's balance of trade recorded a surplus of US$749.49 million in May 2025, although that figure is a slight decline due to a significant 56.85 percent month-to-month (mtm) surge in imports while exports contracted slightly by 1.73 percent mtm. The decrease in exports was caused by a drop in the export volume of coaland lignite, while the rise in imports was due to an increase in purchases of transport vessels. Nevertheless, overall, South Kalimantan's economic performance in early 2025 showed promising signs of recovery amid ongoing global pressures.

The South Kalimantan state budget revenue target was set at Rp22.04 trillion for 2025, with the realized satate budget revenue reaching Rp4.41 trillion or 19.9 percent of said target as of May 2025. However, the figure represents a 42.65 percent fall yoy. Tax revenue dominates state revenue.

Although overall state revenue contracted, Catur stated, "Revenue from customs and excise has exceeded the target and grew positively by 224.8 percent."

South Kalimantan's non-oil and gas income tax fell by 18.27 percent to Rp3.18 trillion, largely due to the centralization of police allowances payments and teacher certification in Jakarta that resulted in a shift in Article 21 Income Tax records. The public administration sector also saw a 19.78 percent contraction due to the reduction in South Kalimanta's 2025 budget ceiling amid the Prabowo Subianto administration's budget austerity policies. Property and building taxes in South Kalimantan dropped sharply by 80.69 percent to Rp43.26 billion due to a decrease in taxpayers paying taxes outside the current year. Value added tax and luxury goods sales tax combined also fell steeply by 111.24 percent to Rp278.19 billion beacuse of an increase in tax restitution. On the other hand, other types of taxes saw a massive 8,753.76 percent jump to Rp355.76 billion.

Customs and excise revenues in the province totaled Rp406.51 billion, supported by export duties that accounted for 94.99 percent of the total. Other revenues collected by the Finance Ministry's Customs and Excise Directorate-General (DJBC) totaled Rp2.17 trillion, including Rp964.1 billion of import taxes that was comprised of Rp179.4 billion in import income taxes and Rp784.7 billion of VATs. Non-tax state revenue dropped by 12.57 percent to Rp697.13 billion. It included Rp187.84 billion of public service agencies revenue, which was a 5.12 percent growth, and other non-tax state revenues which were down 17.68 percent to Rp509.29 billion. Luxury goods sales taxes managed by the Finance Ministry's Treasury Directorate-General, such as ones on assets, state receivables, and auctions, contributed Rp11.97 billion.

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