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East Kalimantan

CONTENTS
Brief Information
Geography
Economy
Natural Resources
Investment Opportunities
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^ Brief Information

In terms of area, the province of East Kalimantan ranks second, less than Papua, among provinces of Indonesia.

This area covers as large as one and a half times of Java and Madura islands. Having large region, this province enjoys potential areas. In addition, the geological condition of East Kalimantan region resulted the abundant resources of mineral deposits.

This province has a total area of 245,237.780 km2 or 24, 523, .780 ha, comprises 20,039,500 ha (81.71%) land and 4,484,280 ha (18.29%) seawaters. A part of the available natural resources is land which is suited for plantation, food crop cultivation, livestock's and fisheries.

In addition, various mining deposits such as oil, natural gas, coal, gold, silver and others are available for supplying of raw materials of industries. The intensive actions are needed to manage the highly potential natural resources of East Kalimantan province in the upcoming years.

These actions should be applied to accelerate the development programs and projects, especially by developing domestic as well as FDI companies. Many business fields/sectors can be developed in this region including plantation, agriculture, food crops, livestock's and fisheries.

East Kalimantan province has also potential minerals such as coals, quartz, gips, pumice, dolomite, limestone, benthonic, marble, chalcedony, rijang stone, quartz crystal, and quartzite.

^ Geography

East Kalimantan province is located between 113,044'- 118,059' east longitude and between 04,024' north latitude - 020-25' south latitude. It has level and undulating topography. This region borders on other regions:

  • In northern area with Sabah state (eastern Malaysia)
  • In eastern area with Makasar Bay and Sea of Sulawesi.
  • In southern area with South Kalimantan province.
  • In western area with Central Kalimantan province, West Kalimantan province and Sarawak state (eastern Malaysia)

In term of area, Malinau regency has the largest region (4,199.040 Ha or 41,990.40 km2) while Bontang city is the smallest one (497.57 ha or 497.57 km2).

Kalimantan has tropical season and experiences almost the same season with most regions in Indonesia. In addition, East Kalimantan region is influenced by West monsoon during November - April and East monsoon during May - October so that this region is known to have Tropical Humid season.

In 2001, the average rainfall was recovered at 298.42 mm per month.

The average temperature was between 20.90°C - 34.40°C.

^ Economy

GROSS REGIONAL DOMESTIC PRODUCTS

In 2002, the GRDP including oil and gas based on constant price was 24,521,450 million. Mining and quarrying sectors share the most important role with the amount of 32.73% followed by processing industries sectors in the amount of 31.53%, transportation/ communication at 10.48%, agriculture at 8.11% and trading/hotels/restaurant sectors at 8.62%.

Compared to that of the previous years (1999, 2000, and 2001), contribution of mining and quarrying sectors to the GRDP increased from 31.27% in 2001 to 32.73% in 2002.

INCOME PER CAPITA

In 2002 the economic growth reached 4.4% (including oil and gas) and 5.79% (excluding oil and gas). The income per capita of East Kalimantan province amounted to Rp 25.6 million (including oil and gas) and Rp 10.06 million (excluding oil and gas) in 2002.

EXPORT-IMPORT

In 2002 the export value amounted to US$ 7,033,000. Contribution of East Kalimantan province to the national reserve from foreign trade (exports) activities still depends on the share of oil and gas sectors.

MINIMUM WAGE RATES

The regional wage rates were around Rp 500,000.00 - Rp 650,000.00 in 2002. The highest rate was paid in mining, oil and gas sectors, while the lowest was paid in timber business and forestry sectors.

^ Natural Resources

AGRICULTURE

East Kalimantan province has potential areas that can be developed as food crop farming. The area was about 2.6 million ha, consisted of 856,194 ha wet rice field and 1,743,885 ha dry field. The areas have not been optimally cultivated and have been reserved as potential areas for food crop farming.

These areas spread out in many regencies/cities. The large reserved area is expected to be potential farming areas that can be developed not only to fulfil the regional and national needs but also to provide export commodities. East Kalimantan province has adequate infrastructures to support this program. In addition, it is benefited by its strategic position in international trade lines. The main farming commodities are rice (wet field and dry field), soybean, corn and mung bean that are cultivated in large area.

PLANTATION

In 2001, from the available area of 300,943.50 ha, there were only 292,139.50 ha area cultivated. This activity has absorbed about 188,622 farmers. The plantation areas increased approximately 6.88%/year.

The development of plantation has been executed through the implementation of the Plantation Implementation Unit (UPP) pattern, the People Nucleus Plantation (PIR) pattern, Self-supporting/partial pattern and the large plantation both owned by the Government (PTPN XIII) and private companies.

ANIMAL HUSBANDRY

The cattle's population in this province is potential to be developed, due to its large areas and the market demand that continuously increased. In order to meet the demand of cattle and poultry meat, it must be brought into East Kalimantan province from the outside region such as South Sulawesi, Central Sulawesi, East Java and Bali. In spite of the declining population of many kinds of cattle's, its population has developed in such a better figure during the recent three (3) years (2000-2002).

FISHERIES

Seawaters potencies cover 4,484,283 ha, spread out along Makasar Bay and sea of Sulawesi Which have a large potential fisheries. The total potential production is about 341.000 ton/year, however, the beneficial rate reached only as much as 133,273 ton/year or 30% from the existing potencies. There is a big opportunity to develop fisheries sectors in this province. The sustainable production of fisheries sectors (sea, public waters, salty waters and fresh waters) reach about 339,998 ton/year. While the real production was 154,341.3 ton.

FORESTRY

East Kalimantan province has a total forest area around 20.62 million hectare, comprises 6 types of forests namely protected forest, natural conservation and tourism forest, limited production forest, converted production forest and educational/training forest.

The forest productions hold the important role to the regional development. Besides its importance function as a forest, it has a high economic value come from commercial valuable plants such as timber trees, lime trees, kerning trees, bangkirai trees, nyatoh trees, ulin (very hard wood) trees, apathies tress, mangrove trees, perupuk trees etc.

In addition, many commodities are also produced from East Kalimantan forests such as resin, bees honey, orchid flowers, crocodile leather, bird's nest, eaglewood, tengkawang trees (Dipterocarpaceae sp), tunjuk langit roots and shingle roof. Up the end of 2001, the existing production forests in East Kalimantan province which have been managed by the third parties converted 83 Forest Management Concession (HPH) with area of 5,815.776 ha and 16 Industrial Plant Forests (HTI) with the area of 814,803 ha. The log production in the period of 2000/2001 reached 1,511,026.4 m3 TPTI and 3,196.420.8 m3/IPK.

MINING

Mining sector in East Kalimantan province covers oil and gas and non-oil and gas. Oil and natural gas contribute an important role to the economic development especially of East Kalimantan and for Indonesia in general, because these become the main export commodities. Other main commodities of mining sector are available in this province such as coal, gold, silver, nickel, kaolin, limestone and quartz sand.

In the up coming years, oil production is enable to be increased as resulted from the operating of the new operational area. From the offering of 6 operational areas, 4 areas are affordable for the investors. In addition, there many potential mining that investors can process and develop.

^ Investment Opportunities


(this information is taken from Wikipedia and BKPM).

 

© 2006 Embassy of the Republic of Indonesia - Bangkok, Thailand Last Modified: August 2007