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

October 21, 2024

Pertamina Gas Negara (PGN), state-owned oil and gas company Pertamina's gas subholding unit, is targeting a 15 Bilion British Thermal Unit per Day (BBUTD) natural gas (natgas) development potential in South Sulawesi Province for the domestic industrial sector through the signing of two memorandums of understanding (MoUs).

"PGN seeks to achieve synergy from collaboration that would be beneficial for the development of industry and the regional economy. All parties are expected to be able to immediately follow up [the MoUs) so that the cooperation is realized and natgas could be one of the [industry] attracting invesments," PGN Commercial Director Ratih Esti Prihatini said during her statement in Jakarta on Oct. 7, 2024.

The two MoUs on natgas usage development potential in South Sulawesi was signed by PGN on Oct. 4, 2024.

First, PGN signed an MoU with KSO Indogawa and Siantar Tara Sejati to meet natgas needs of power plants in South Sulawesi. The potential supply of natural gas for this need is 5 BBTUD.

Second, PGN signed an MoU with the Pattene Industrial Park, which owns an area of ​​1,000 hectares (ha) with around 50 industrial tenants, thus potentially expanding the company's market penetration.

The number of tenants in the industrial area is expected to increase, so the potential for natgas sales will also rise. Ratih added that PGN is committed to maintaining the availability of natgas supply so that the energy could be used optimally.

As a national natural gas aggregator, PGN provides pipeline gas, liquefied natgas (LNG), and compressed natural gas (CNG) services, so that the form of natural gas distribution can be carried out according to clients' needs.

"This collaboration is valuable for PGN, which is currently developing the [natgas] market in Sulawesi. In addition, PGN wants the use of natgas in the clean energy mix to increase, especially in Central and Eastern Indonesia. Through this commitment, PGN hopes to contribute to reducing carbon emissions during the energy transition period," Ratih stated.

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