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

December 29, 2025

PT Hutama Karya (HK) has officially signed the contract for the construction of the bridge connecting Kalimantan Island and Laut Island. The project is part of the Indonesian government's efforts to strengthen regional connectivity and accelerate economic growth.

Public Works Ministry Highways Director General Roy Rizali Anwar explained that the signing of the contract and memorandum of understanding (MoU) for the construction of the Kalimantan-Laut Island Bridge marks the beginning of the strategic infrastructure construction phase in South Kalimantan Province.

"The Kalimantan-Laut Island Bridge project is designed as a key infrastructure project that will connect Kalimantan with Laut Island. This infrastructure will be a major land link that complements the existing transportation system in the region," Roy said in an official statement on Dec. 25, 2025.

Construction state-owned enterprise (SOE) PT HK is entrusted with leading the consortium executing the project.

Separately, PT HK Executive Vice President (EVP) and Corporate Secretary Mardiansyah stated that the project has a total bridge length of over 1,000 meters, consisting of a main span of approximately 500 meters with a cable-stayed bridge structure, and approach spans of over 500 meters. During its implementation, the project also utilizes Building Information Modeling (BIM) technology to improve the efficiency of planning and construction control, as well as project safety.

"The signing of this contract is an important milestone for Hutama Karya, a champion in the road and bridge sector, to immediately begin project implementation in a measured and professional manner, prioritizing quality, timeliness, and safety," Mardiansyah stated.

He added that the construction of the Kalimantan-Laut Island Bridge will provide strategic benefits to the local community, from improving transportation mobility and logistics distribution, expanding access to public services, to strengthening economic activity. The presence of this bridge is also expected to encourage the growth of new economic centers and increase the region's investment attractiveness.

"Through this project, Hutama Karya is committed to providing infrastructure that will act as a lever for economic growth, strengthen interregional connectivity, and support equitable national development," concluded Mardiansyah.

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