“I alone know the plans I have for you, plans to bring you prosperity and not disaster, plans to bring about the future you hope for.”
Jeremiah 29:11 (GNT)
”Java is the island of the past and Sumatra the island of the present. But Kalimantan – Kalimantan is the island of the future.”
Barbara Crossette (1987)
Panorama of Kemala Beach Balikpapan
Balikpapan City
1.0 Physical Characteristics
Geography: Balikpapan, situated on the east coast of Kalimantan, is a seaport city covering an area of 503 km²—slightly larger than Rome.
Population: As of 2020, Balikpapan had a population of 682,000, and it’s expected to reach 2.7 million by 2050.
Location: The city is positioned on the east coast of Borneo, facing the Celebes Sea.
Distance from Balikpapan to other cities in Borneo Distance to Asia Pacific cities
| City | Distance (km) |
| Bandar Seri Begawan | 716 |
| Banjarmasin | 336 |
| Hong Kong | 2,635 |
| Jakarta | 1,253 |
| Kota Kinabalu | 811 |
| Kuching | 786 |
| Pontianak | 844 |
| Samarinda | 90 |
| Shanghai | 3,646 |
| Singapore | 1,470 |
| Sydney | 5,089 |
| Taipei | 2,965 |
| Tarakan | 517 |
| Tokyo | 4,748 |
Tropical:
- Balikpapan, situated at 1.2° south of the equator, experiences a tropical climate with an annual rainfall of 2,539 mm and an average temperature of 28.9°C.
- It boasts the largest economy in Kalimantan and holds the second-highest population in East Kalimantan.
- The city’s airport and seaport rank as the busiest gateways in Kalimantan.
- With abundant rain, ample sunshine, and lush tropical forests, Balikpapan is recognized for its orderly, clean surroundings and captivating sea views, earning its spot as one of the best cities to live in Indonesia.
Key Attributes:
- Economic Powerhouse: Balikpapan is a hub for large mining, oil, and gas industries.
- Wain River Forest Reserve: Spanning 10,000 hectares, this reserve is a sanctuary for exotic flora and fauna.
- Beautiful Beaches: The city is home to some of the most stunning beaches in East Kalimantan, including Melawai Beach, Manggar Beach, Lamaru Beach, Kemala Beach, and Monpera Beach.
- Historical Significance: The Battle of Balikpapan in 1945 marked a crucial Allied victory in the Borneo campaign, securing control of the entire Borneo Island.
Unique Features:
- Tourist Destination: Balikpapan serves as a prominent tourist destination and serves as the gateway to Kalimantan, making it one of the most desirable cities to live in Borneo.
- Natural Resource Potential: The city holds vast potential for natural resource exploration and agriculture industries, contributing to its economic significance and development.
2.0 History
| Event | Year |
| Bugis Fishing Village | 19th century |
| First Oil Drilling | 1897 |
| Dutch East Indies Town | 1899 |
| BPM HQ (Oil Company) | 1907 |
| Japanese Occupation | 1942 |
| Pertamina HQ (Oil Company) | 1965 |
Unique Attributes:
- Former Dutch East Indies Colony: Balikpapan carries historical significance as a former Dutch East Indies colony, shaping its cultural and architectural heritage.
- Well-Established Timber Industry: The city has a robust timber industry, contributing to its economic development and trade activities.
- Thriving Oil Industries: Balikpapan’s history is intertwined with oil, marked by the establishment of oil drilling in 1897 and the presence of major oil companies like BPM and Pertamina.
3.0 Economy
Balikpapan’s major economic activities:
- Tourism:
Balikpapan’s tourism is driven by its beaches, including Manggar Beach and Segara Beach. It serves as a gateway to the rainforest, with the Wain River Protected Forest offering a natural reserve of over 10,000 hectares. The area is home to diverse flora and fauna, including honey bears, Orang-utans, and proboscis monkeys. The Bukit Bangkirai Rainforest provides exploration opportunities.
- Industry:
The 2,189-hectare Kariangau Industrial Zone caters to heavy and medium industries, warehousing, coal, oil and gas, commodities, and aquaculture. It strategically locates near Sepinggan Airport and Kariangau power plants.
- Airport:
Sepinggan International Airport provides direct flights to major Indonesian and Asian cities, handling 7.5 million passengers in 2018, with a capacity for 15 million visitors.
- Seaports:
Kariangau Seaport, part of the Kariangau Industrial Estate, supports container and other industries.
- Oil & Gas:
Balikpapan hosts multinational corporations like Baker Hughes, Chevron Texaco, Halliburton, Pertamina, Schlumberger, Total, and Weatherford. The Balikpapan oil refinery on Balikpapan Bay is a key player in the city’s economic landscape.
Unique Attributes:
- Opportunities exist for downstream development in oil and gas, timber, mining, and various industries.
4.0 Language
Common Languages: Malay, Chinese, and English are prevalent in Balikpapan city, catering to diverse linguistic needs.
Unique Feature:
- The common Malay language, also known as Bahasa Indonesia, stands out as the primary and most widely used language in Balikpapan.
- It serves as an effective means of communication in government, business, and the local community.
5.0 Investment Opportunities
5.1 New Migration
- The influx of new migrants, including expatriates and labour, is anticipated to elevate the population to 2.7 million by 2050.
- Proximity to Indonesia’s new capital creates employment, business, and foreign investment opportunities.
- The growth corridor spanning over 100 km between the new capital and Samarinda will drive demand for property, infrastructure, and industrial expansion.
5.2 Airport
- Sultan Aji Muhammad Sulaiman Sepinggan Airport’s capacity of 10 million passengers will require upgrades to accommodate the expected increase to around 13 million visitors.
5.3 Education
- Limited international schools currently available, creating a demand for 10 new international schools to cater to an estimated 12,500 foreign students.
5.4 Tourism
- Untapped potential in tourism with a need for improved hospitality infrastructure.
- Targeting 13 million tourists by 2050, necessitating the construction of 200 new hotels and associated hospitality venues.
- Various tourism sectors, including cultural, historical, heritage, eco, culinary, and adventure tours, present investment opportunities.
5.5 Infrastructure
- Major investments in highway development, including new interstate highways and international routes.
- Introduction of a Mass Transit Rail (MTR) between Balikpapan and Samarinda.
- Construction of new water treatment plants to support the city’s growing population.
5.6 Property Development
- Balikpapan’s appeal as one of the most liveable cities in Indonesia drives demand for residential, commercial, and healthcare developments.
- Plans for an additional 2 million dwellings, diverse-themed shopping malls, and facilities for aging populations.
5.7 Special Economic Zones (SEZ)
- Food downstream hubs focusing on local agricultural products, tropical fruits, spices, herbs, sauces, and starch derivatives.
- Agriculture zones for palm oil downstream manufacturing, rice, cassava, corn, and tropical fruits targeting North Asia markets.
- Balikpapan aims to become part of Borneo’s cold chain network for agricultural and aquaculture exports, potentially becoming a major distribution center for the Asia Pacific markets.
- Inclusion in the Refinery Development Master Plan to increase Indonesia’s crude processing capacity and contribute to the growth of one of the largest oil and gas refinery networks in the Asia Pacific.