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.

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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.

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Latest News

January 12, 2025

Bank Indonesia (BI) West Kalimantan Province Representative Office gave their support for the Management Business Innovation Conference (MBIC) with "Strengthening Local Branding of MSMEs to Increase West Kalimantan Exports" as its theme. BI itself has programs to improve micro, small, and medium enterprises (MSMEs), and relevant to the MBIC's theme is the fact that some MSMEs which BI fostered have gone on to export their products.

"The improvements [and] challenges that we have conveyed as speakers [include] improvements in the financing aspect and the existence of [BI's] Go Export [and Go Digital] programs. BI, all agencies, and academics could seek solutions to improve MSMEs in West Kalimantan together," stated BI West Kalimantan Head N.A. Anggini Sari when she served as a speaker MBIC activity at the West Kalimantan Governor's Office's pavillion in Pontianak City on Dec. 7, 2024.

Anggini said that she is also committed to continuing to improve the development of MSMEs in West Kalimantan.

During the same occasion, Finance Ministry Customs and Excise Directorate-General West Kalimantan Province Regional Office (West Kalimantan Customs) Head Imik Eko Putro stated that there are 225,000 MSMEs recorded in West Kalimantan based on West Kalimantan MSMEs data in 2024, with 165,000 recorded in an integrated manner.

"So that's a fairly large number compared to 200,000 in the previous year. The potential for superior MSME products in West Kalimantan are largely from plantation products. Chips from bananas, for example," he explained.

Imik observed that the products must continue to be monitored due to their potential to be developed for trade, as West Kalimantan is a border area neighbouring Malaysia's Sarawak. He encourages MSMEs to learn how to export if they want more added value from their products.

"[West Kalimantan] Customs is ready to collaborate with the [West Kalimantan] Provincial Government as well as regency and city governments of West Kalimantan," he concluded.

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