Although the nickel boom has driven extraordinary economic growth in Southeast Sulawesi—particularly in Konawe Regency—this is by no means a recipe for sustainable development. Sole reliance on nickel leaves Konawe’s future vulnerable on multiple fronts. Nickel is a non-renewable resource, and its price is heavily affected by volatility in international markets. Moreover, excessive exploitation can cause serious environmental damage, ultimately harming sustainable sectors such as agriculture and fisheries.
The RPJPN 2025–2045 also emphasizes the need for a stronger focus on sustainable economic growth at both the provincial and regency levels. In light of this, Konawe needs an alternative economic model—one capable of supporting its people over the long term while minimizing environmental damage.
To achieve this, economic diversification that does not rely on mining and extractive industries is key. In this report, CELIOS designs several economic diversification programs for Konawe and simulates their impacts using an IO model. These programs focus on strengthening the agricultural and fisheries sectors, as well as investing in renewable energy. The results show that this diversification would increase economic growth in Southeast Sulawesi by an average of 4.64% per year over the next 20 years. Although this figure is not as high as the rapid growth driven by nickel, a diversification strategy offers a more sustainable and environmentally friendly growth path.
Although the nickel surge has delivered remarkable on-paper economic growth for Southeast Sulawesi—particularly in Konawe Regency—it is by no means a recipe for sustainable development. Relying solely on nickel puts Konawe’s future at risk. Nickel is a limited resource that will eventually be depleted and whose value depends heavily on fluctuations in international markets. Moreover, overexploitation could cause significant environmental degradation, which in turn would harm more sustainable sectors such as agriculture and fisheries.
The RPJPN 2025–2045 also mandates a stronger focus on sustainable economic growth at both provincial and regency levels. With this in mind, an alternative economic model for Konawe must be designed; one that can consistently support its people over the long term while minimizing environmental damage.
For this purpose, economic diversification that places far less emphasis on mining and extractive industries is essential. In this report, CELIOS outlines several potential diversification programs for Konawe and simulates their impact using an IO model. These programs focus on strengthening the agricultural and fisheries sectors, alongside investments in renewable energy. The results suggest that such diversification could increase Southeast Sulawesi’s economic growth by an average of 4.64% annually over the next 20 years. While this figure may not match the rapid, nickel-driven boom, it offers a growth path that is both sustainable and less environmentally destructive.
CELIOS [ID] Konawe Economic Diversification Potential Download