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

May 20, 2025

The South Sulawesi Provincial Government reported that investments to South Sulawesi soared by 56.84 percent year-on-year (yoy) Rp3.93 trillion in the first quarter (Q1) of 2025. Domestic investments dominated, reaching Rp2.42 trillion, while foreign investments reached Rp1.51 trillion.

South Sulawesi Investment and One-Stop Integrated Services Office (DPMPTSP) Head Asrul Sani said that the surge in realized investment to the province was driven by increased investments to the mining sector, which accounted for Rp919 billion or around 25 percent of total investments to South Sulawesi in Q1 2025. The sector's investment performance was followed by food industry sector which constituted Rp701 billion or 18 percent of overall investments to the province.

Next is the trade and repair sector that make up Rp534 billion or 14 percent, the transportation, warehousing, and communication office sector which accounted for Rp438 billion or 11 percent, the metal industry sector that constituted Rp310 billion or 8 percent, as well as other corporate sectors that together make up the remaining Rp920 billion or 24 percent.

"Our [investment] target throughout 2025 is Rp16.6 trillion. Although the achievement is [still] only around 23.67 percent, we are optimistic that investment realization in South Sulawesi will continue to increase in the future," said Asrul in Makassar City, South Sulawesi on May 9, 2025.

Makassar City is still has highest realized investment among South Sulawesi's regions with Rp1.4 trillion, followed by East Luwu Regency at Rp585 billion, Gowa Regency with Rp816 billion, Luwu Regency with Rp415 billion, and Bantaeng Regency with Rp297 billion.

Meanwhile, the five countries with the largest investment in South Sulawesi include Canada with Rp435 billion, Australia with Rp329 billion, China with Rp300 billion, Malaysia with Rp470 billion, and Hong Kong with Rp108 billion.

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