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.

Show more

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.

Show more

Latest News

March 17, 2025

The Bombana Regency Government of Southeast Sulawesi Province is opening investment opportunities for local and foreign entrepreneurs to build shipyards, as there are many ships that need routine repairs and maintenance in the area.

"Bombana has several ferry crossing ports, from [Tondasi-West Muna, Fising Kabaena and Poleang-Bajoe Bone Regency] which certainly need shipyards. Not to mention the steel ships owned by a number of mining companies, which need repairs within a certain period of time," said Bombana Deputy Regent Ahmad Yani in Kendari on Feb. 27, 2025.

He added that the construction of a shipyard does not require a large area, in comparison to control of a mining area, because it only requires a coastal area of ​​2 to 3 hectares (ha).

"This is important [because] it will create jobs for the local community as well as increase locally-generated revenue (PAD) if it is built," Yani explained.

He also revealed that there was once a mining company that opened a shipyard business secretly for internal circles in the region. However, the company must request a legal permit in establishing a docking facility in the future.

"As far as I can remember, only Makassar and Ambon have shipyards in the Southern Sulawesi region. There was one built by fisheries company PT Bonecom in the 80s-90s based in Kasilampe, Kendari City, but it was closed in the 2000s," Yani said.

He ensured that construction of the shipyard could make repairs to ships anchored at Kasipute Bombana Port or from Baubau City to no longer need to be done in Makassar City, South Sulawesi or Ambon City, Maluku Province.

"Currently, the [Bombana] Regency Government does not have the budget to build a shipyard. Hence, the regency government encourages and invites investors to invest [for the shipyard's construction] while the district government will prepare the land and facilitate all construction permits," Yani concluded.

Read more
March 5, 2025
February 21, 2025
February 4, 2025
December 26, 2024
November 14, 2024
October 28, 2024
September 29, 2024
August 29, 2024
Load more