Province

South Sulawesi

Overview Economy

Sulawesi - South Sulawesi

Located on the southern peninsula of Sulawesi Island, South Sulawesi is a province surrounded by several bodies of water and other provinces. To the north, it shares a border with Central Sulawesi and West Sulawesi. On the east, it is bordered by the Gulf of Bone and Southeast Sulawesi, while to the south, the Flores Sea laps the province’s shores.

Covering an area of 46,717 square kilometers, South Sulawesi is home to 9.3 million people, making it the most populous province on the island. Makassar, previously called Ujung Pandang, serves as the province’s capital city and is known as a major port city and center for trade and commerce. It is also recognized as one of the four most important cities in Indonesia for economic growth, alongside Medan, Jakarta, and Surabaya.

Given its large population, South Sulawesi features a diverse mix of ethnicities, religions, and languages. The main ethnic groups in the province include the Bugis, Makassar, Toraja, and Mandar people. In terms of religious beliefs, approximately 89 percent of the population adhere to Islam, followed by 7 percent following Christianity, less than 2 percent practicing Hinduism, and less than 1 percent following other beliefs.

Indonesian serves as the official language of the province. However, South Sulawesi also features a rich tapestry of local languages, with fourteen different local languages existing throughout the region. These languages, including Toraja, Bugis, Makassar, Mandar, Massenrempulu, and Lemolang, as well as Rampi, Seko, Bugis De, Wotu, and Bajo, contribute to the region's rich cultural legacy, each with its own distinctive qualities.

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Economic

As of 2023, South Sulawesi’s economy has been thriving, having acquired Rp 377 trillion in Gross Regional Domestic Product (GRDP). The province’s economic landscape is primarily driven by the construction sector, contributing Rp 46 trillion to the province’s GRDP. Additionally, agriculture ranks second, contributing Rp 42 trillion, followed by the fisheries sector with Rp 29 trillion.

South Sulawesi is poised for a significant economic boost, particularly due to the region’s booming construction sector. The province’s strategic investments in infrastructure development include modernized transportation networks, healthcare facilities, and educational institutions. Additionally, South Sulawesi has several national strategic projects (PSN) underway, with two completed PSNs focused on the province’s infrastructure, namely the Makassar New Port, which serves as the backbone of maritime transportation in eastern Indonesia, and the Makassar-Parepare Railway, facilitating travel between Makassar and Parepare.

Agriculture-wise, South Sulawesi stands out as an eastern Indonesian powerhouse for food crop production. Crops are the highest contributor to the province’s agricultural GRDP, with food crops contributing nearly 50 percent of the Rp 42 trillion generated by the agricultural sector. Key food crops produced by South Sulawesi include paddy, corn, soya beans, cassava, sweet potato, and mung beans.

Furthermore, the fishing industry saw significant production in 2023, with 492,159 tonnes harvested, surpassing the 436,735 tonnes produced the year before. Most of the catch comes from saltwater fisheries rather than freshwater fisheries.

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Latest News

January 12, 2025

Bank Indonesia (BI)'s South Sulawesi Province Representative Office has once again provided a forum for micro, small, and medium enterprises (MSMEs) as well as regencies and cities throughout South Sulawesi to meet buyers and investors from 30 countries through Anging Mammiri Business Fair (AMBF) x South Sulawesi Investment Forum (SSIF) 2024. The total investment value on show at the event reached Rp 9.5 trillion.

"We have [done business matching resultingin] export transactions involving food and beverages with a value of Rp91 billion," he said at the opening of AMBF x SSIF 2024, which was held from Nov. 20-21, 2024.

He added that the sector that was most sought after by foreign buyers during the opening day is the food and beverage sector, including seaweed, cocoa, and spices.

"South Sulawesi's MSMEs as well as its regencies and cities have very large potential, so it is hoped that cooperation can be established between buyers and MSMEs. In order for MSMEs to be noticed, they must improve their quality, have [the approval of] BPOM (Food and Drug Monitoring Agency), and can ensure the [demanded] quantity is met through a continuity certificate," he explained.

Meanwhile, South Sulawesi Province Investment and One-Stop Integrated Services Office (DPMPTSP) Head Asrul Sani acknowledged the great potential of regencies and cities in South Sulawesi. He revealed that AMBF x SSIF 2024 showcased 14 projects from said regencies and cities which were directly offered to prospective investors. One of the commodities that has a high selling value is seaweed, as South Sulawesi is the largest producer of seaweed in Indonesia.

"There are 14 projects offered by cities and regencies [in South Sulawesi] to potential investors [at AMBF x SSIF 2024]. There is a lot of potential [in the province]. An example is seaweed, as South Sulawesi is the largest producer [of the commodity in Indonesia] and there is currently a lot of demand from China for the product which is sourced from the [regencies of] Bone and East Luwu. Selayar [Islands Regency] sand dune tourism, Bone [Regency] beef cattle, and several other investment projects also have very large potential," he elaborated.

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