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

March 24, 2025

Investment and Downstream Industry Deputy Minister/Investment Coordinating Board (BKPM) Deputy Head Todotua Pasaribu received a visit from members of the South Kalimantan Province House of Representatives (DPRD), both of whom plan to design new regulations to increase the province's investment attraction.

Todotua admitted that several strategic steps will be taken to improve South Kalimantan's attractiveness for investment, such as providing clearer incentives for investors, ensuring the involvement of local business actors in the investment ecosystem, and opening up more opportunities for local workers.

"My suggestion is for there to be an article on business participation for the investment activity itself so MSMEs (micro, small, and medium enterprises) or cooperatives could partake in mining operations and other [related] activities. Thus, local business actors could get a good portion of investment activities in the region," stated Todotua on Mar. 15, 2025.

One of the main focuses of the collaboration is the revision of Regional Regulation No. 10/2010 on the Implementation of Investment to align with the Job Creation Law, or Law No. 11/2020 on Job Creation, and Law No. 6/2023 on the Stipulation of Government Regulation in Lieu of Law No. 2/2022 on Job Creation, as well as Presidential Regulation No. 10/2021 on the Investment Business Sector.

"The regulatory improvement is expected to provide legal certainty and accelerate [the business] permitting process through integration with the risk-based online single submission (OSS) system," Todotua revelaed..

Realized investments to South Kalimantan Province reached Rp24.8 trillion in 2024 based on Investment and Downstream Industry Ministry/BKPM date. That achievement made South Kalimantan be ranked 16th out of 38 provinces in terms of investment realization.

The investment value mostly comes from its three largest sectors, namely the mining sector at 51.56 percent, the transportation, warehouses, and telecommunications sector at 14.12 percent, as well as the crops, plantations, and livestock sector at 7.08 percent.

Todotua added that the Investment and Downstream Industry Ministry/BKPM has facilitated a partnership program between large businesses and MSMEs through the partnership feature in the province's OSS system. He also requested the South Kalimantan DPRD and the South Kalimantan Investment and One-Stop Integrated Services Office (DPMPTSP) to coordinate closely with the central government to overcome various challenges in licensing and spatial management.

"We hope that communication between the regional and central governments will be improved so that investment opportunities could be optimized. We also hope to meet with the executive of the South Kalimantan Province to further explore the investments available in the region," said Todotua.

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