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

April 16, 2026

Surabaya — The North Kolaka regency administration is stepping up efforts to accelerate regional industrialization by actively courting international investors through a two-day investment roadshow in Surabaya.

The “Kolaka Utara Industry, Trade and Investment Visit”, held on April 15–16, is part of a broader push to promote downstream processing of key commodities, particularly cocoa and coconut, as the region seeks to move up the value chain.

The visit was led by North Kolaka Regent Nur Rahman Umar, accompanied by the regency’s industry office head Andi Haerul Rijal. The event was facilitated by the EDC Forum, with Tenggara Strategics serving as a knowledge partner.

Surabaya was chosen for its strategic role as a hub for foreign consulates and trade offices covering eastern Indonesia, providing direct access to international investor networks.

Focus on downstream industries

During a series of meetings, the regent emphasized that the initiative aims to invite investors and business actors from partner countries to establish concrete collaborations.

The primary focus is on developing downstream agribusiness industries, particularly cocoa processing. Targeted products include cocoa powder, cocoa liquor and cocoa butter.

Beyond cocoa, North Kolaka is also promoting investment opportunities in other commodities such as coconut, cloves, essential oils and palm sugar. Opportunities are also open in tourism, fisheries and mining.

Engaging international partners

The delegation began its engagements with representatives from the Australian Trade and Investment Commission (Austrade) and the Taipei Economic and Trade Office (TETO) in Indonesia.

Austrade highlighted potential areas for cooperation between Indonesia and Australia, including resource-based industries, industrial capacity building, and investment and technology support.

Meanwhile, TETO outlined its role in facilitating economic cooperation between Indonesia and Taiwan, focusing on trade, investment, technology transfer and industrial partnerships, particularly in manufacturing and modern agribusiness.

The delegation also met with representatives from Germany through EKONID, the German-Indonesian Chamber of Industry and Commerce. Discussions focused on potential collaboration in coconut processing, including technology transfer, product quality improvement and access to European markets.

Dutch interest in cocoa sector

The first day concluded with a meeting at the Netherlands Business Support Office (NBSO) in Surabaya, where discussions centered on the region’s cocoa potential.

North Kolaka has approximately 75,000 hectares of cocoa plantations, but only around 25,000 hectares are currently optimally managed. With strong demand for cocoa in Europe, the Dutch side expressed interest in facilitating partnerships between North Kolaka and chocolate industry players in the Netherlands, particularly for downstream processing.

Toward concrete agreements

The roadshow serves as a precursor to the Kolaka Utara Industry, Trade and Investment Coffee Morning scheduled for May 11 in Surabaya, where the regency aims to deepen engagement with potential partners.

Regent Umar expressed hope that the initial meetings would lead to more intensive communication and concrete cooperation.

“We hope these initial connections can be followed up with tangible partnerships. With support from consulates and trade offices, we also expect business actors from partner countries to attend and explore direct collaboration,” he said.

The administration is targeting the signing of Letters of Intent (LoIs) across several strategic sectors as a first step toward realizing investment commitments.

Through this proactive approach, North Kolaka aims to reposition itself from a raw commodity producer into a value-added industrial hub, with the goal of boosting regional economic growth and improving local livelihoods.

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