West Sulawesi Economy Shows Solid Growth in 2025, While Poverty and Inequality Decline

The economy of West Sulawesi Province demonstrated solid performance throughout 2025, recording an economic growth of 5.36 percent (c-to-c), higher than the achievement in 2024. In the fourth quarter of 2025, the economy grew by 6.55 percent (y-on-y) and 3.87 percent (q-to-q). The Gross Regional Domestic Product (GRDP) at current prices (ADHB) reached Rp71.16 trillion, while at constant prices (ADHK) 2010 amounted to Rp39.08 trillion.

The Head of BPS-Statistics Indonesia of Sulawesi Barat Province, Suri Handayani, stated that this growth reflects the resilience of the regional economy, which continues to be supported by key economic sectors.

“Agriculture, forestry, and fisheries remain the main drivers of West Sulawesi’s economy, followed by manufacturing and trade. However, contraction in the construction sector has restrained the pace of higher growth,” she explained.

From the expenditure side, economic growth was mainly driven by Net Exports, which recorded double-digit growth, along with household consumption that remained positive. Meanwhile, government consumption and gross fixed capital formation (GFCF) continued to contract on an annual basis. Within the Sulawesi, Maluku, and Papua (Sulampua) region, West Sulawesi recorded a growth rate of 5.36 percent, ranking 8th out of 14 provinces.

In line with economic growth, the poverty rate in West Sulawesi declined in September 2025. The percentage of poor population stood at 10.18 percent, decreasing by 0.23 percentage points compared to March 2025. In absolute terms, the number of poor people reached 149.88 thousand persons, down by 2.43 thousand persons, with a larger reduction occurring in rural areas.

“September 2025 marked the lowest poverty rate in West Sulawesi in the post-pandemic period. This decline was supported by relatively strong economic growth, sustained household consumption, improvements in the Farmers’ Terms of Trade, increased rice production, controlled inflation, and the distribution of government social assistance,” said Suri Handayani.

Nevertheless, the Poverty Line increased to Rp510,846 per capita per month, rising by 7.44 percent compared to March 2025, with food commodities accounting for a dominant share of 78.28 percent. In addition, the poverty gap index (P1) increased to 1.97, and the poverty severity index (P2) rose to 0.54, indicating that the average expenditure of the poor tended to move further away from the poverty line and inequality among the poor widened.

From the expenditure distribution perspective, inequality in West Sulawesi continued to improve. The Gini Ratio in September 2025 was recorded at 0.308, declining by 0.008 points compared to March 2025. The decline mainly occurred in urban areas, while rural areas remained relatively stable. At the national level, West Sulawesi’s inequality was lower than Indonesia’s Gini Ratio, which stood at 0.363.

Meanwhile, labor market conditions in November 2025 showed an Open Unemployment Rate (OUR) of 3.01 percent, slightly higher than in August 2025. The Labor Force Participation Rate (LFPR) was recorded at 73.09 percent, in line with a decline in the labor force. Employment structure remained dominated by the agricultural sector, with 71.29 percent of employed persons working in the informal sector.

“Going forward, the main challenge for West Sulawesi is to enhance the quality of growth, particularly by increasing formal employment opportunities, strengthening non-agricultural sectors, and ensuring more inclusive economic growth,” concluded Suri Handayani.

Media Contact

Haryo Satriaji

Public Relations, BPS-Statistics Sulawesi Barat Province

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