Rising Beyond Java: Provinces Driving Indonesia’s Regional Growth

Several provinces outside Java—such as Central Papua, Lampung, and South Kalimantan—are showing consistently rising economic growth.

Rising Beyond Java: Provinces Driving Indonesia’s Regional Growth
An aerial view of a factory construction project in the Kendal Special Economic Zone (SEZ), Kaliwungu, Kendal Regency, Central Java, Thursday (8/7/2025). The Central Java Provincial Government recorded investment realization in the first half of 2025 at Rp45.58 trillion, equal to 58.19 percent of the annual target, and helping create 222,373 jobs, making Central Java the province with the highest job absorption on the island of Java. ANTARA FOTO/Aprillio Akbar/agr.

While Indonesia’s economy remains heavily centered on Java, a number of provinces beyond the island are steadily carving out their own growth stories. Central Papua, Lampung, and South Kalimantan, in particular, have emerged as consistent engines of expansion over the past five years.

Data from Statistics Indonesia (BPS) show the national economy grew 5.12% in the second quarter of 2025. Java, which accounts for 56.94% of GDP, expanded 5.24%. Growth elsewhere was more modest: Sumatra (4.96%), Bali–Nusa Tenggara (3.73%), Kalimantan (4.95%), Sulawesi (5.83%), and Maluku–Papua (3.33%).

Yet beyond the headline numbers, the provinces recording the steepest gains are outside Java. Since 2020, North Maluku and Central Sulawesi have stood out for rapid growth, though their momentum has softened since 2021. By contrast, Central Papua, Lampung, and South Kalimantan have shown steadier progress, consistently ranking in the top five provinces for annual GRDP growth.

From Q1 to Q2 2025, Central Papua, Lampung, and South Kalimantan grew 14.15%, 9.33%, and 8.10%, respectively. Over the past five years, these three provinces have shown consistently rising growth. Other provinces—such as North Maluku, Central Sulawesi, and Papua—experienced a surge in 2021 but declines through 2024.

The high GRDP growth in these provinces is supported by different sectors. In Lampung, regional growth is underpinned by agriculture, forestry, and fisheries, as well as manufacturing. South Kalimantan is more driven by the mining sector.

This pattern shows that the strength of emerging regions is backed by varied potentials. Such diversity will help sustain national growth and distribute economic growth centers more evenly.