Banjarbaru

Banjarbaru – From Wilderness to economic hub

Prior to 1951, what is now Banjarbaru, the capital city of South Kalimantan, was merely a cluster of hills, serving as a resting place for diamond miners. Uninhabited and covered in weeds, it remained untouched until frequent flooding disrupted government activities in Banjarmasin, the previous provincial capital, prompting leaders to relocate to Banjarbaru.

In August 2011, the Indonesian government completed the transfer of all administrative and provincial government offices for South Kalimantan to Banjarbaru. By February 2022, its transformation into the province's capital was finalized.

Since becoming the capital city, Banjarbaru has experienced an enormous influx of businesses eager to invest in the city. The year 2022 marked its official status as the capital and saw an earning of Rp 645.93 billion in investment, up 400 percent from Rp 146.75 billion in 2021. Back in 2020, it only had Rp 88.71 billion invested. There was, however, a noticeable decline in investment numbers in 2023, with only Rp 361.34 billion, although the number of both local and foreign projects continued to increase that year despite this drop, with 29 foreign investment projects in 2023 compared to 18 in 2022, and 366 domestic investment projects in 2023 compared to 180 in 2022.

The lack of public information about opportunities and investment potential was largely to blame for this decline. Local authorities have worked to combat this through digitalization efforts to spread information so that investors can find profitable opportunities. They have also endeavored to provide free licensing to investors and are facilitating the creation of a one-stop integrated service so that permits could be more easily processed.

Banjarbaru's allure extends beyond its economic prospects. The city also boasts various theme parks like Amanah Borneo Park and D'Legenda Castle, reminiscent of Disneyland, along with family-friendly water parks such as Palm Mini Waterpark. Buana Garden, spanning 100 hectares with 700 plant varieties, offers botanical delights.

With a population of around 248 thousand, Banjarbaru in 2023 recorded its Gross Regional Domestic Product (GRDP) at a total of Rp 13.32 trillion, with transportation and warehousing contributing 26.20 percent, followed by construction at 13.74 percent, and wholesale and retail trade (including car and motorbike repairs) at 10.79 percent.