Province

West Kalimantan

Overview Economy

West Kalimantan, province of the “city of the equator”

Located on the island of Borneo, West Kalimantan is the most populous province on the island with a population of 5.56 million people as of 2023. The majority of this population adheres to Islam at 60 percent, followed by Catholicism at 22.16 percent, Christianity at 11.58 percent, Buddhism at 5.85 percent, and Confucianism and Hinduism both at 0.26 percent.

Geographically, West Kalimantan is strategically adjacent to the Archipelago Sea Lines of Indonesia I (ALKI I), an international shipping route connecting South and West Asia. This proximity has provided the province with significant geographic leverage, enabling it to advance the interests of both the province and its citizens. The province’s capital city is Pontianak, known as the "city of the equator" due to its location on the imaginary line dividing the planet into its north and south hemispheres.

West Kalimantan is widely recognized for its biodiversity, encompassing various ecosystems ranging from mangrove swamps to tropical rainforests. These habitats support a variety of plants and animals, including endangered species such as pygmy elephants, proboscis monkeys, and orangutans. The province is also home to many protected sites, including the Gunung Palung National Park and the Danau Sentarum National Park. Additionally, West Kalimantan is known for its extensive peatlands, which play a crucial role in carbon sequestration and climate regulation.

Culturally, numerous indigenous groups, each with its distinct traditions, languages, and customs, live in the province. These groups include the Malay, Chinese, and Dayak groups. Notably, the province’s traditional longhouse or rumah panjang are iconic symbols of Dayak culture, which serve as communal homes for extended families.

Show more

Economic development

West Kalimantan relies primarily on agriculture, with many locals relying on it for their means of subsistence. From 2021 onwards, the province’s GRDP has mainly been attributed to this sector, accounting for 23.94 percent in 2021, 23.28 percent in 2022, and 22.65 percent in 2023. The province is well-known for producing palm oil, rice, and rubber.

Following agriculture, the processing sector is the next significant contributor to West Kalimantan’s GRDP, accounting for 16.09 percent in 2021, 15.94 percent in 2022, and 15.65 percent in 2023, along with the trade sector at 13.64 percent in 2021, 14.60 percent in 2022, and 15.06 percent in 2023. Additionally, the mining and forestry sectors play significant roles in the region’s economy.

Exports also contribute to West Kalimantan’s economy. In 2023, key exported products included inorganic chemicals, fat and animal oil, and rubber, contributing 49.44 percent, 25.74 percent, and 7.89 percent of total exports, respectively. In January 2024, West Kalimantan’s main export destinations were India with a value of US$63.39 million, China with US$38.10 million, and Japan with US$14.12 million. Together, these three countries accounted for 70.89 percent of exported goods from the province.

Furthermore, West Kalimantan’s economy is supported by the Kapuas River, the longest river in Indonesia, stretching 1,143 kilometers from the heart of Kalimantan to the Karimata Strait, nearly the length of Java Island. The river serves as a crucial resource for local communities, supporting trade, industry, shipping, residences, and tourism.

Show more

Latest News

May 8, 2025

Mining Industry Indonesia (MIND ID) is planning downstream projects worth a combined US$14.3 billion, and the mining holding state-owned enterprise (SOE) collaborating with sovereign wealth fund (SWF) Daya Anagata Nusantara Investment Management Agency (Danantara) to find partners who are willing to join the project.

According to MIND ID's official statement on Apr. 22, 2025, The downstream projecs in question consist of Smelter-Grade Aluminium Refinery Phase 2 project and the Aluminium Smelter Expansion project in Mempawah Regency, West Kalimantan Province; the Copper Smelter Industry project in Gresik Regency, East Java; and the EV Battery Ecosystem project in Halmahera Island, North Maluku.

Mind ID Portfolio and Business Development Director Dilo Seno Widagdo stated that MIND ID has several  long-term investment plans which are expected to be very effective in spurring stronger Indonesian economic growth. The SOE's plans also aim to encourage investment inflow to the domestic mineral and coal downstream sector.

Meanwhile, Danantara plays a crucial role as one of the country's two SWFs in encouraging superior projects, especially in the natural resource-based manufacturing industry sector.

"We believe that, these strategic projects can find the right partners while encouraging higher quality economic growth through Danantara," said Dilo.

He added that Indonesia's mineral and coal sectors still have great room for growth. MIND ID as the national strategic commodity manager has a strong position in the upstream sector. It has worked to maximize added value from coal and reduce dependence on raw mineral exports.

On the mid-stream side, MIND ID has also produced various mineral products such as aluminum, copper, gold, and tin that are in line with global industrial needs, especially for the electric vehicle (EV) sector and energy transition.

Even so, MIND ID also realizes that further production capacity increases are needed to meet increasing domestic and international demand. Therefore, the requisite efforts must be pursued to integrate the SOE's supply chain in the domestic industrial sector, which will be carried out together with prospective partners.

In turn, MIND ID believes that demand for domestic mineral products will increase, which would also enlarge MIND ID's production capacity. To that end, MIND ID has prepared itself to attract investor interest, as the SOE has mapped out potential projects as well as calculated in depth the capital expenditure (capex) needs and return on investment (RoI) projections.

"From MIND ID's side, we have sufficient capital capacity, but we still hope for a partnership [and its realization could be used] to evaluate Danantara in the future," added Dilo.

Read more
April 17, 2025
March 26, 2025
March 18, 2025
March 6, 2025
February 24, 2025
February 11, 2025
February 11, 2025
January 12, 2025
Load more