A growing population and abundant natural resources contribute to the wealth of the island of Sulawesi in Indonesia, while terrain and under-developed infrastructure limits economic growth.
A growing population and abundant natural resources contribute to the wealth of the island of Sulawesi in Indonesia, while terrain and under-developed infrastructure limits economic growth.
Sulawesi is one of the Greater Sunda Islands and the eleventh largest island in the world. The island is divided into six provinces; Gorontalo, Central Sulawesi, North Sulawesi, South Sulawesi, Southeast Sulawesi, and West Sulawesi. [1]
The geography of the island varies from region to region. The northern provinces are mountainous, while the southern provinces are lower-laying. Many provinces contain outlying islands which exhibit different economic conditions than the main island. Most economic activity on Sulawesi is conducted on a small scale, with the only notable concentrations of organized industry on the island being in Southern Sulawesi. The geography of the island disadvantages the development of industry, as much of the island's population is localized in small areas, driving up construction and labor costs. [2]
The majority of economic activity on Sulawesi is related to resource extraction, including mining, forestry, and the harvesting of other valuable natural resources. Agriculture and fishing are also major sectors of the economy. Economic activity varies from region to region, with most economic activity being centered in Southern Sulawesi and parts of Northern Sulawesi. The economic hub of the island is the province of South Sulawesi, which has the largest population of any of Sulawesi's constituent provinces and is the location of the largest city on the island, Makassar. Infrastructure on the island is sparse and limits economic development, with only Makassar having developed infrastructure. [2] Efforts to improve the island's infrastructure are ongoing, [3] notably the construction of a new port and train line in Makassar in the late 2010s. [1] In 2019 efforts began to establish a special economic zone in North Sulawesi, [4] though some locals have objected that these projects are destroying local communities and industries. [4]
Agriculture is a major component of the economy of Sulawesi and employs more people than any other economic sector—according to one 2016 source, 30–40% of Sulawesi's constituent provinces' GDP is tied to agriculture. [3] Most agriculture on the island is done on a local scale on family-owned plots, though as of the early 2010s more farmers were beginning to grow cash crops in place of the traditional rice. Crops vary by region; in the mountainous north, tree crops such as cloves, coconut, and nutmeg are grown, while in the flatter south, commercial crops such as cocoa, tobacco, sugar, and rice are grown. Cattle also contribute to the economy of Southern Sulawesi. [2]
Despite its large contribution to the economy of the island, the agricultural sector was growing slower than the Indonesian national average as of 2016. [3] Most agricultural production is highly localized and is done on small plots of land. [2]
A large part of the Sulawesi economy is based around resource extraction, most notably mining, forestry, and fishing. Being an island, Sulawesi has an extensive coastline and many of its inhabitants are involved in the fishing industry. [2]
Mining, quarrying, and other forms of mineral extraction contribute to economic activity in the island; as with other sectors of the economy, these industries are primarily concentrated in Northern and Southern Sulawesi. [2] [3] [1] Northern Sulawesi has rich copper deposits and has recently invested in building nickel smelters. [3] Chinese conglomerates Tsingshan Holding Group and Huafon Group plan to invest heavily in the island's nickel, aluminum, and chemical industries. [5]
In the late 2010s and early 2020s, the international mining industry has taken an increasing interest the Morowali Regency (located in the province of Central Sulawesi) and the region's high-quality nickel reserves - vital for the production of lithium batteries. Indonesia banned the export of nickel ore in 2014, forcing international companies to refine the ore in Indonesia and thereby increase downstream investment in Indonesian companies. The thriving nickel industry in Morowali (such as at the Morowali Industrial Park) has resulted in a large increase in the region's GDP (one source notes a 300% increase between 2013 and 2019), [6] but the expansion of the extraction industry has also caused environmental degradation. [6] As of 2021, the largest foreign investors were American, Brazilian, Chinese, and Japanese companies, while the government of Indonesia is attempting to build a domestic battery industry. [6]
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Sulawesi, also known as Celebes, is an island in Indonesia. One of the four Greater Sunda Islands, and the world's 11th-largest island, it is situated east of Borneo, west of the Maluku Islands, and south of Mindanao and the Sulu Archipelago. Within Indonesia, only Sumatra, Borneo, and Papua are larger in territory, and only Java and Sumatra have larger populations.
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Central Sulawesi is a province of Indonesia located at the centre of the island of Sulawesi. The administrative capital and largest city is located in Palu. The province borders the provinces of Gorontalo to the east, Southeast Sulawesi, South Sulawesi, and West Sulawesi to the south, and sharing maritime borders with East Kalimantan to the west, North Maluku to the east, and Malaysia and the Philippines to the north. The 2010 census recorded a population of 2,635,009 for the province, and the 2020 Census recorded 2,985,734, of whom 1,534,706 were male and 1,451,028 were female. The official estimate as at mid 2022 was 3,066,143. Central Sulawesi has an area of 61,605.72 km2 (23,786 sq mi), the largest area among all provinces on Sulawesi Island, and has the second-largest population on Sulawesi Island after the province of South Sulawesi. It is bordered by the provinces of Gorontalo to the north, West Sulawesi, South Sulawesi and South East Sulawesi to the south, by Maluku to the east, and by the Makassar Strait to the west. The province is inhabited by many ethnic groups, such as the Kaili, Tolitoli, etc. The official language of the province is Indonesian, which is used for official purposes and inter-ethnic communication, while there are several indigenous language spoken by the Indigenous peoples of Central Sulawesi. Islam is the dominant religion in the province, followed by Christianity which is mostly adhered to by the people in the eastern part of the province.
South Sulawesi is a province in the southern peninsula of Sulawesi, Indonesia. The Selayar Islands archipelago to the south of Sulawesi is also part of the province. The capital and largest city is Makassar. The province is bordered by Central Sulawesi and West Sulawesi to the north, the Gulf of Bone and Southeast Sulawesi to the east, Makassar Strait to the west, and Flores Sea to the south.
Makassar, formerly Ujung Pandang, is the capital of the Indonesian province of South Sulawesi. It is the largest city in the region of Eastern Indonesia and the country's fifth-largest urban center after Jakarta, Surabaya, Medan, and Bandung. The city is located on the southwest coast of the island of Sulawesi, facing the Makassar Strait.
Palu, officially known as the City of Palu, is the capital and largest city of Central Sulawesi. Palu is located on the northwestern coast of Sulawesi and borders Donggala Regency to the north and west, Parigi Moutong Regency to the east, and Sigi Regency to the south. The city boundaries encompass a land area of 395.06 km2 (152.53 sq mi). According to the 2020 Indonesian census, Palu had a population of 373,218, making it the third-most populous city on the island after Makassar and Manado; the official estimate as at mid 2022 was 381,572 - comprising 191,052 males and 190,520 females. Palu is the center of finance, government, and education in Central Sulawesi, as well as one of several major cities on the island. The city hosts the province's main port, its biggest airport, and most of its public universities.
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