Province

Southeast Sulawesi

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

January 13, 2026

PT Berdikari Pondasi Perkasa (BDKR) is collaborating with PT Masterpancang Pondasi to expand its access and participation in large-scale construction projects, particularly in the Indonesia Pomalaa Industry Park (IPIP) area in Kolaka Regency, Southeast Sulawesi Province.

BDKR Operations Director Tan Franciscus stated that the collaboration between the company and Masterpancang has been agreed upon within the framework of a joint operation (JO) agreement. The JO aims to strengthen BDKR's business position amid increased construction activities in industrial areas based on natural resources downstream industry development.

"This collaboration represents a positive moment for BDKR, a specialist in foundations, ground improvement, marine and jetty construction, and heavy lift and crane rental. Through this synergy, the company will not only expand its project network but also increase its competitiveness in facing several complex projects that require [high] technical capacity," he explained in an official statement on Dec. 22, 2025.

The IPIP area is projected to grow rapidly in line with the government's push for the nickel downstream industry development and national electric vehicle (EV) battery industry supply chain strengthening programs, since the integrated industrial area is designed as a nickel-cobalt and battery material production center to support the global EV industry through local mineral processing.

The IPIP area is developed and managed by Zhejiang Huayou Cobalt Co. Ltd. The major Chinese investor is known as a giant in the battery materials sector and a global player in the EV battery supply chain, with numerous mining and processing projects worldwide.

This situation opens up opportunities for geotechnical and heavy civil engineering project contractors to participate in the development programs.

BDKR's collaboration with Masterpancang also provides strategic value in terms of professional network access. Masterpancang has established working relationships with stakeholders involved in the construction of the IPIP area, thus opening up opportunities for BDKR's participation in the growing project chain. This network allows for faster communication with area developers, while also providing an early understanding of construction requirements, construction schedules, and applicable technical standards.

Franciscus believes that the collaboration with Masterpancang is a strategic step for the company to address the challenges of large-scale projects in new industrial areas, such as the IPIP area. Masterpancang is known as a company with experience in geotechnical engineering for structural foundation services, heavy civil engineering, and integrated engineering work across various strategic projects.

"Thus, through the JO between BDKR and Masterpancang, we will combine technical competencies in foundation work and soil engineering, experience in handling industrial projects, and the availability of heavy equipment and specialized tools," he said.

Frans is optimistic that this strategic collaboration will positively contribute to BDKR's revenue in the next few years. By opening access to projects at IPIP, the company could secure large-value contracts that can support sustainable top-line growth. Operational cost efficiencies through resource sharing, optimizing heavy equipment use, and sharing project risks through the JO scheme with Masterpancang are also believed to be able to maintain BDKR's healthy profit margins.

BDKR's management views the IPIP area as a long-term and sustainable strategic market. The development of this industrial area will create recurring construction needs, from the initial construction phase to future industrial facility expansion. Optimism regarding this prospect is also supported by the growing investment trend in the mineral processing and refining industry. Nickel-based industrial areas are becoming a new driver of economic growth, particularly in Southeast Sulawesi, in line with increasing global demand for raw materials for EV batteries.

During the first nine months of 2025, BDKR posted Rp 282.7 billion of revenue and a net profit of Rp 10.9 billion. The company also reduced its liabilities by 31.5 percent year-to-date (ytd) to Rp 391.71 billion by the end of September 2025, with its total equity reaching Rp 753.35 billion.

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