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

February 21, 2025

Statistics Indonesia (BPS) Southeast Sulawesi Province reported that the Southeast Sulawesi economy experienced 5.4 percent cumulative annuual growth (c-to-c) in 2024, up from 5.35 percent c-to-c in 2023. BPS Southeast Sulawesi Acting Head Surianti Toar explained that, in terms of production, the industrial manufacturing business field recorded the highest cumulative annual growth at 12.98 percent.

"Meanwhile, in terms of expenditure, household-serving non-profit consumption expenses component experienced the highest growth at 12.42 percent," she added on Feb. 5, 2025.

The Southeast Sulawesi economy rose 5.08 percent year-on-year (yoy) in the fourth quarter (Q4) of 2024. In terms of annual growth from the production side, the information and communication business field recorded the highest growth at 9.92 percent yoy. On the expenditure side, government consumption expenditure increased by 7.32 percent yoy.

The Southeast Sulawesi economy also rose 5.87 percent quarter-to-quarter (qtq) in Q4 2024. In terms of quarterly growth from the production side, the manufacturing industry business field recorded the highest growth rate at 17.74 percent qtq. Meanwhile, the goods and services export component in the expenditure side surged by 22.35 percent qtq.

For contribution to the Southeast Sulawesi regional gross domestic product (GRDP) from the production side, the agriculture, forestry, and fisheries business field contributed the largest in 2024 by 23.48 percent. Meanwhile, the largest contribution from the expenditure side came from household consumption expenses, which contributed 46.14 percent to the province's GRDP.

The GRDP of Southeast Sulawesi at current prices reached Rp189.48 trillion in 2024, and it also reached Rp113.99 trillion at the 2010 constant price.

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