East Kalimantan GRDP distribution in Indonesia 2023, by sector

In 2023, the coal and lignite mining industry contributed approximately 34 percent to East Kalimantan's Gross Regional Domestic Product (GRDP). The manufacturing sector followed, with a share of around 17.7 percent.

Indonesia's coal industry

Indonesia is one of the largest producers and exporters of coal worldwide, with most of its production coming from Kalimantan and Sumatra. As of 2022, East Kalimantan holds over 40 percent of Indonesia’s total proven coal reserves. Coal also plays a critical role in the country’s electricity sector, making up the majority of Indonesia’s electricity mix.

The development of Nusantara

Since 2022, the Indonesian government has been developing Nusantara to become the new capital. As it is located in East Kalimantan, which is known for its rich natural biodiversity, concerns have arisen regarding the sustainability of the city’s development. The government has claimed that Nusantara is designed to be a green smart city, targeting zero-carbon emissions by 2045.