Insights

Introduction

The transformation of East Kalimantan from a resource-rich but infrastructure-deficient province into a key logistics hub has been among the most remarkable economic development stories in Indonesia over the past half-decade. Driven by strategic national priorities, private sector innovation, and the province's pivotal geographic position, logistics infrastructure investment in East Kalimantan has experienced unprecedented growth, creating a solid foundation for the region's future as Indonesia's new administrative and economic center.

This article examines the substantial investments made in East Kalimantan's logistics infrastructure over the past five years, analyzing investment trends, key projects, strategic impact, and future trajectory. For investors considering participation in East Kalimantan's development, understanding the momentum already established in the logistics sector provides essential context for evaluating new opportunities in this dynamic market.

Investment Landscape Overview

Logistics infrastructure investment in East Kalimantan has shown remarkable growth over the past five years, driven by both public and private capital:

Total Investment Volume

YearTotal Logistics Infrastructure Investment (USD billions)Growth Rate (%)Public Sector Share (%)Private Sector Share (%)20201.8Baseline65%35%20212.327.8%60%40%20223.552.2%55%45%20235.248.6%50%50%20247.850.0%45%55%Total 5-Year Period20.6333%52%48%

This substantial and accelerating investment trend reflects growing confidence in East Kalimantan's strategic importance, particularly following the official designation of Nusantara as Indonesia's future capital in 2022.

Investment by Infrastructure Category

The distribution of investment across different logistics infrastructure categories reveals strategic priorities and opportunities:

Infrastructure CategoryTotal 5-Year Investment (USD billions)Share of Total (%)CAGR (%)Port Development6.833.0%42%Road Networks5.225.2%38%Warehousing & Storage3.718.0%45%Rail Transport2.512.1%52%Logistics Technology1.25.8%65%Inland Waterways0.73.4%30%Other0.52.4%25%Total20.6100%44%

Port development has led investment priorities, reflecting East Kalimantan's strategic position as a maritime gateway, followed closely by road infrastructure needed to connect ports with resource areas and population centers.

Investment by Source

The origins of investment capital demonstrate the global interest in East Kalimantan's development:

Investment SourceAmount (USD billions)Share (%)Indonesian Government9.345.1%Indonesian Companies5.225.2%Japanese Investors2.110.2%Singaporean Investors1.46.8%Chinese Investors1.25.8%South Korean Investors0.73.4%Other International0.73.4%Total20.6100%

While domestic investment remains dominant, international participation has grown significantly, with East Asian investors showing particular interest in the region's development potential.

Key Port Development Projects

Port infrastructure has been a primary focus of investment, with several major projects transforming East Kalimantan's maritime capabilities:

1. Balikpapan Bay International Port Expansion

Total Investment: $1.85 billion
Status: Phase 1 completed in 2023, Phase 2 under construction
Key Features:

• Container capacity expansion from 400,000 TEU to 1.5 million TEU annually

• Development of new petroleum product berths with 250,000 DWT capacity

• Automated container handling systems reducing turnaround time by 60%

• Integrated customs processing facility

• Dedicated clean energy vessels berth

Impact:

• 120% increase in container throughput since completion of Phase 1

• Vessel waiting time reduced from 36 hours to 8 hours

• Direct shipping connections established with 23 international ports

• Created 1,200 permanent jobs and estimated 4,500 indirect jobs

2. Samboja Bay Infrastructure Development

Total Investment: $750 million (Phase 1 completed, additional phases planned)
Status: Phase 1 operational, Phase 2 under construction
Key Features:

• Strategic location 30km from Nusantara

• Phase 1: Coal Terminal with 500,000 metric tonnes monthly capacity

• Phase 2: Manual Loading Terminal for construction materials

• Phase 3: Container Terminal (planned)

• Five mining concessions connected via private 12km hauling road

Impact:

• Achieved operational capacity targets within first quarter

• Secured long-term contracts for 70% of available capacity

• EBITDA margin of 49% in first six months of operation

• Positioned as the primary logistics gateway for Nusantara construction

3. Maloy Batuta Trans Kalimantan Port and Industrial Zone

Total Investment: $2.1 billion
Status: Port infrastructure 75% complete, industrial zone development ongoing
Key Features:

• Deep-water port capable of handling vessels up to 100,000 DWT

• Specialized palm oil processing and export facilities

• Integrated industrial zone covering 1,000 hectares

• Dedicated power generation facility

• Containerized cargo capacity of 300,000 TEU annually

Impact:

• Palm oil exports increased by 45% from East Kalimantan

• Processing capacity expanded by 3 million tons annually

• Industrial zone has attracted 27 manufacturing companies

• Created 3,500+ direct jobs in port operations and processing

• Reduced export logistics costs by 23% for regional producers