Palu — Regional development inequality remains one of the biggest economic challenges in Central Sulawesi. A recent study by Novita Fauza Harda, Patta Tope, and Laendatu Paembonan from Tadulako University reveals significant disparities between the province’s western and eastern regions during 2020–2024.
Published in 2026 in the East Asian Journal of Multidisciplinary Research, the study highlights that rapid economic growth does not automatically translate into equal prosperity. This finding is especially relevant as Central Sulawesi has become one of Indonesia’s fastest-growing economic zones, driven largely by nickel mining and industrial processing.
Over the past five years, Central Sulawesi recorded strong economic growth, peaking at 15.17 percent in 2022. However, the benefits of this growth have been distributed unevenly across its districts and cities.
The sharpest gap appears between the eastern and western regions. Eastern areas, particularly Morowali and North Morowali, have become industrial centers due to large-scale nickel smelting and mining operations. These sectors have generated massive local income growth, while neighboring districts still rely heavily on traditional sectors such as agriculture, fisheries, and small-scale trade.
The researchers analyzed Gross Regional Domestic Product (GRDP) and population data from 13 districts and cities across Central Sulawesi over five years. Using the Williamson Index, they measured regional inequality based on per capita income distribution.
The findings show that western Central Sulawesi has relatively low inequality, with an average index of 0.31. This indicates a more balanced economic structure dominated by agriculture, trade, and services.
In contrast, the eastern region recorded an average inequality index of 1.32, categorized as extremely high. The concentration of industrial investment in Morowali and North Morowali is the main factor behind this imbalance.
Across the entire province, the average inequality index reached 1.44, showing that development disparities in Central Sulawesi have accumulated at a critical level.
According to the authors, these inequalities are influenced not only by differences in natural resources but also by infrastructure quality, investment accessibility, geographic conditions, and human resource capacity.
Regions hosting large industries enjoy extraordinary income growth, while districts dependent on traditional sectors expand at a much slower pace. The COVID-19 pandemic also worsened the imbalance by disrupting economic recovery across regions.
The researchers stress that this condition should serve as a warning for policymakers. Better inter-regional infrastructure is essential to improve connectivity and reduce economic concentration.
They also recommend broader investment distribution so economic opportunities are not limited to industrial hubs. Strengthening local sectors such as fisheries, agriculture, and tourism could help create more inclusive growth.
Another major recommendation is improving local workforce skills. Industrial expansion should be accompanied by vocational training and education reforms to ensure communities can benefit directly from economic opportunities.
The study reinforces an important message: economic growth is not just about high numbers, but about how fairly its benefits are shared. When prosperity is concentrated in only a few regions, inequality can deepen and social instability may follow.
For Central Sulawesi, the challenge ahead is not only maintaining rapid growth but ensuring all districts can move forward together toward shared prosperity.
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