Province

Southeast Sulawesi

Overview Economy

Sulawesi - Southeast Sulawesi

Situated on the southeastern tip of Sulawesi Island, Southeast Sulawesi is a province in Indonesia that was originally part of South and Southeast Sulawesi province. In 1964, the region’s administrative structure changed with the enactment of Law No. 13/1964, which formally separated Southeast Sulawesi, granting it the status of a province.

The province boasts a significant landmass of 36,159 square kilometers and a vast maritime territory spanning 110,000 square kilometers. As of 2023, the province is home to 2,749,010 people, with Kendari, the bustling capital city, serving as the administrative hub for this province. Southeast Sulawesi is divided into 15 districts and two cities.

Southeast Sulawesi’s population is predominantly composed of indigenous people, including the Tolaki, Buton, Wawonii, and Banggai tribes. While the province is rich in ethnicity, its religious landscape is predominantly Islamic, with over 95 percent of the population adhering to Islam. Other religions, such as Hinduism, account for 1.8 percent, alongside Christianity at 1.6 percent, and Catholics at 0.6 percent of the population.

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Economic Description

In 2022, Southeast Sulawesi’s economy showcased a diversified structure with a Gross Regional Domestic Product (GRDP) of IDR 102 trillion. Leading the contribution was the mining sector at Rp 18 trillion. With the province rich in nickel and holding large reserves, this sector leverages Southeast Sulawesi’s rich mineral resources, forming the backbone of the province’s economic activities.

Subsequently, Southeast Sulawesi will take part in the national smelter development program to generate jobs in the region and further support Indonesia’s nickel sector. These efforts position the province as a potentially significant economic center in the future.

Despite the province’s strength in mining, agriculture remains a significant player, with a GRDP of Rp 12 trillion in 2022. Endowed with high-quality cocoa, Southeast Sulawesi presents itself as a province with substantial agricultural prospects. Notably, Indonesia is known for being the third-largest cocoa producer in the world. According to data from the Directorate General of Plantation of the Agriculture Ministry, in its 2020-2022 report, the country’s cocoa production has soared above 700,000 tonnes annually for the past five years, with Sulawesi and Sumatra leading production, contributing nearly 80 percent of the nation’s total output.

Moreover, Southeast Sulawesi capitalizes on its extensive coastline with a thriving fisheries sector, contributing Rp 11 trillion to the GRDP. Nestled between the Flores and Banda Seas, the province boasts significant potential in marine and fishery resources, resulting in a wealth of diverse fishery products. This signifies a well-developed fishing industry that harnesses the abundant marine resources of the region.

Additionally, the Indonesian government has designated Southeast Sulawesi for multiple national strategic projects (PSN), setting it up for a significant development push in 2024. To draw in investment and boost employment in the area, four industrial zones are underway throughout the regencies of Konawe and Kolaka. Furthermore, two dams will also be constructed in East Kolaka and Konawe to supply water for irrigation and potentially generate energy.

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Latest News

June 26, 2025

Southeast Sulawesi Governor Andi Sumangerukka officially opened the 2025 Sultra Investment Summit organized by the Southeast Sulawesi Investment and One-Stop Integrated Services Office (DPMPTSP) on June 24, 2025. He emphasized the importance of investment as one of the main pillars in driving economic growth and improving the welfare of the local community.

"Our presence here is a form of joint commitment to support increased investment in the Southeast Sulawesi Province," stated Andi during his presentation.

He added that Southeast Sulawesi is known to have extraordinary natural wealth, but it is currently still very dependent on transfer payment of up to 65 percent from the Indonesian government.

"With these fiscal conditions, I will not be able to improve the welfare of the community alone. I need support from all business actors," Andi said.

He added that realized investments to Southeast Sulawesi has reached to Rp4.46 trillion in the first quarter (Q1) of 2025, or 34 percent of the Rp13.28 trillion annual investment target for the province. Therefore, strategic steps are needed so its potential in various sectors such as mining, agriculture, fisheries, tourism, and services could be maximized.

“I am not asking for more, I am only asking for the obligation to be fulfilled. Sometimes, entrepreneurs are committed at the beginning but are not consistent during the running [of their projects]. This is what we must change. Without investment, we will only rely on the regional budget, 35 percent of which is used for employee expenses. It is difficult to drive the micro economy if we do not prepare fiscal strength from now on,” Andi explained.

The governor also invited all Southeast Sulawesi regional offices to support the creation of a welcoming investment climate, and to not complicate the service process for investors. Andi said that the bureaucracy must be a facilitator that provides certainty, not become an obstacle.

“If it can be done quickly, why slow it down? If it can be made easier, why should it be made difficult? We are all responsible for creating a healthy investment climate because the benefits will be felt by the entire community,” he added.

At the same occasion, Andi reminded business actors to submit their Investment Activity Reports (LKPM) for the second quarter (Q2) or first semester (H1) of 2025 through the LKPM Online application by July 10-17, 2025.

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