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

September 21, 2024

In an effort to encourage economic growth and strengthen South Kalimantan Province's investment climate, the South Kalimantan Provincial Government and Bank Indonesia (BI) South Kalimantan Representative Office held South Borneo Investment Forum (SBIF) 2024. The event was held in Banjarmasin City, South Kalimantan on Aug. 13, 2024, with a focus on the presentation of various strategic investment projects and cooperation opportunities.

BI South Kalimantan Head Fadjar Majardi emphasized the importance of investment as the main driving force in achieving the economic target of Golden Indonesia 2045. His side views investment as the key to achieving it to make Indonesia a country with a developed economy by the 2038-2041 period.

"The required GDP [gross domestic product] growth of 6-7 percent per year requires support from various sectors, including those in South Kalimantan," he said.

Fadjar added that SBIF 2024 is a golden opportunity to establish strategic partnerships and explore various investment opportunities that can strengthen the regional economy. He hopes that the forum could be a platform for investors to better understand the investment potential in South Kalimantan and how they can contribute to the ongoing economic transformation.

South Kalimantan Province Regional Secretary Roy Rizali Anwar strongly supports the implementation of SBIF 2024. With various superior investment projects introduced in the forum, it is hoped that SBIF 2024 can attract the interest of investors and business partners to join in regional development efforts.

"We are very excited to welcome the implementation of SBIF 2024, which we consider to be an important step in advancing the economy of South Kalimantan," he said.

Roy added that South Kalimantan has great potential in various sectors that are ready to be developed through investment. The South Kalimantan Provincial Government is committed to providing maximum support for investment projects, from simplifying regulations to infrastructure development.

"We believe that collaboration between the government, BI, and the private sector will accelerate the achievement of our economic goals and contribute to Golden Indonesia 2045," he said.

SBIF 2024 provided one-on-one meeting sessions with investors for ready-to-offer and clean & clear projects based on the IPRO Challenge 2023 and 2024. This one-on-one session provides an opportunity for investors to explore investment opportunities and cooperation schemes.

"This is a strategic platform to further discuss the potential and support available from the local government," he said.

Various investment projects offered include:

  1. Kusan Hydroelectric Power Plant in Tanah Bumbu Regency: Development of a hydroelectric power plant (hpp) with an investment of Rp2.7 trillion.
    Project Owner: Tanah Bumbu Regency Investment and One-Stop Integrated Services Office (DPMPTSP).
  2. Integrated Milkfish Cultivation with Canning Industry in Tanah Bumbu Regency: Milkfish cultivation project integrated with the canning industry with an investment of Rp255 billion.
    Project Owner: Tanah Bumbu Regency DPMPTSP.
  3. Integrated Striped Snakehead Fish Cultivation with Processing Industry in Tanah Bumbu Regency: Striped snakehead fish cultivation project with integrated processing facilities with a total investment of Rp96.5 billion.
    Project Owner: Tanah Bumbu Regency DPMPTSP.
  4. Oleochemical Industry in Tanah Bumbu Regency: Development of the oleochemical industry with a total investment of Rp2.2 trillion.
    Project Owner: Tanah Bumbu Regency Industry Office.
  5. Waste Management System in Banjarbaru City: Waste management system for used oil as well as toxic and hazardous hospital waste with a total investment of Rp30 billion.
    Project Owner: Banjarbaru City Environment Office.
  6. Aerocity Hotel in Banjarbaru City: Hotel construction project according to international standards with a total investment of Rp84 billion.
    Project Owner: Banjarbaru City DPMPTSP.
  7. Modern Slaughterhouses in Banjarmasin City: Revitalization of traditional poultry slaughterhouse markets into modern slaughterhouse markets with a total investment of Rp23.3 billion.
    Project Owner: Banjarmasin City DPMPTSP along with Banjarmasin City Food Security, Agriculture, and Fisheries Office (DKP3).
  8. Hiyung Chili Industry in Tapin Regency: End-to-end development of the hiyung chili industry with a total investment of Rp260.37 billion.
    Project Owner: Tapin Regency Trade Office.
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