East Kalimantan Business Report

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:
a. In northern area with Sabah state (eastern Malaysia)
b. In eastern area with Makasar Bay and Sea of Sulawesi.
c. In southern area with South Kalimantan province.
d. 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 20.900C - 34.400C.

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Demography

Population
In 2002, total population reached 2,558.572 inhabitants consisted of 1,330.457 (52%) male and 1,228.115 (48%) female. Samarinda city was resided by the most residents (544,044 people).
While Balikpapan city was the most densely populated (799, 49 people/km2).

Population Growth
During 2000- 2002, population grew 147,506 people, or in the average rate of 49.169 people/year or 3.5 %/year.

The Economy

Gross Regional Domestic Product (GRDP)
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 Percapita
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 and 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. It can be resulted from the export value during the recent three years as provided in the table below:

Meanwhile, in the same period the import value was amounted to US$ 1,743,000. As presented at the table below, most of import goods in 1999 and 2000 were originated from non-oil and gas categories. While in 2001, the import value of oil and gas categories was greater than that of non-oil and gas categories.

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.