Properties in Panaan

Kelay – Wild Heart of Berau with Orangutans and Primary Rainforest

Kelay is one of Borneo's most ecologically significant districts – a vast, largely forested interior territory traversed by the Kelay River, a major tributary of the Berau River system, where some of the last intact lowland dipterocarp rainforest in northeastern Borneo survives. The Kelay River catchment has been identified by conservation organisations as critical orangutan habitat, and surveys have documented significant populations of Bornean orangutans (Pongo pygmaeus) in the forests of the upper and middle Kelay valley. The district is home to traditional Dayak communities – primarily Dayak Kenyah and Dayak Gaai groups – who have lived in the river valleys for generations, maintaining intimate knowledge of the forest ecology while gradually adopting elements of the modern Indonesian economy. Palm oil expansion has pressed into the district's margins, creating the familiar Kalimantan tension between agricultural development and forest conservation.

Tourism & Attractions

Kelay offers genuine Borneo wilderness experiences for adventurous travellers willing to make the effort to reach it. Orangutan sightings in the forest are possible for those who spend multiple days exploring with local Dayak guides who know the animals' ranging patterns. The Kelay River journey by longboat through primary forest is one of the most immersive river experiences available in Indonesian Borneo – remote, wild, and largely free of other visitors. Traditional Dayak longhouses in the upper river communities represent living cultural heritage, with intricate wood carvings, traditional music and communal governance structures still functioning. Night wildlife walks in the forest reveal tree frogs, flying squirrels, slow loris and a remarkable diversity of nocturnal insects. Birdwatching is exceptional – hornbills, broadbills and Bornean endemic species are regularly recorded.

Real Estate Market

Kelay has essentially no formal real estate market in the conventional sense. Land is primarily under customary adat (traditional) tenure, which is recognised in Indonesian law but requires specific legal processes to formalise. Palm oil companies have attempted to expand into the district and have met with varying degrees of community resistance and government mediation. For conservation-focused investors and NGOs, the district represents an opportunity for conservation finance instruments, carbon credit schemes and payment for ecosystem services arrangements that can provide income to local communities while maintaining forest cover. These mechanisms are increasingly recognised under Indonesian law and international climate frameworks.

Rental & Investment Outlook

The conservation economy represents the most significant investment opportunity in Kelay. Carbon credit schemes based on avoided deforestation (REDD+) can generate meaningful income from the district's intact forest, which has high carbon storage value. Ecotourism investment – remote lodges, guided wildlife experiences and cultural tourism packages – is viable at a small scale for operators who are willing to work closely with local Dayak communities as partners rather than employees. Any commercial activity in Kelay requires deep community trust and transparent benefit-sharing arrangements. The reward for getting these relationships right is access to some of Borneo's most extraordinary natural and cultural assets in a context where the communities genuinely control their territory.

Practical Tips

Kelay is accessed from Tanjung Redeb via a combination of road travel (to the river access point) and longboat journey upriver. The total journey to upper Kelay communities can take a full day or more depending on river conditions and exact destination. A knowledgeable local guide is not optional – it is essential for both safety and meaningful experience in this remote territory. Prepare for challenging conditions: river rapids in the upper sections, difficult trail walking, and basic accommodation in village settings. All food and equipment should be carried in as resupply options are non-existent beyond the first few villages. Vaccinations for hepatitis A, typhoid and rabies are advisable. Malaria prophylaxis is strongly recommended for the interior forest areas. The experience, for those who make the journey, is unforgettable.

Berau – East Kalimantan's Gateway to the Derawan Islands

Berau Regency lies in the northern part of East Kalimantan province, along the Celebes Sea. The region is world-famous for the Derawan archipelago, where crystal-clear waters host coral reefs, manta rays and green sea turtles. On the mainland, the Berau River estuary, dense rainforests and traditional Bulungan, Dayak and Malay communities give the region its cultural fabric. Berau balances coastal marine tourism with the ecotourism of interior Borneo.

Where is Berau?

Berau occupies the northern tip of East Kalimantan province, roughly 500 km north of Balikpapan. The regency capital is Tanjung Redeb, sitting at the mouth of the Berau River. Kalimarau Airport connects the regency with daily flights from Balikpapan and Jakarta. The Derawan Islands are reached by boat from Tanjung Batu in about 2 hours.

What to See?

1. Derawan Island

Derawan is the iconic diving and snorkelling paradise of the region. White-sand beaches, over-water bungalows and crystal-clear water define the experience – green sea turtles are frequently seen directly from the pier.

2. Kakaban Island and its Jellyfish Lake

Kakaban Island hides a lake inhabited by four unique species of non-stinging jellyfish. Only a handful of such lakes exist worldwide; visitors can swim freely among the jellyfish.

3. Sangalaki Island – Manta Rays

Sangalaki is one of Southeast Asia's most important manta ray dive sites. For much of the year dozens of mantas can be seen on a single dive in the plankton-rich waters surrounding the island.

4. Maratua Atoll

Maratua is the most remote island in the group, with a growing number of luxury resorts and dive lodges. Its cave system and mangrove lagoon offer rare experiences.

5. Labuan Cermin Lake

Located in the Biduk-Biduk district, Labuan Cermin is a rare two-layer lake – freshwater on top, saltwater below, with a mirror-clear surface. It's an excellent spot for day trips and swimming.

Culture and Food

Berau's cultural roots trace back to the Bulungan Sultanate, with traditional Dayak carving and a mix of Bulungan and Banjar Malay communities. Local cuisine is dominated by seafood – sambal gami spicy fish, nasi kuning berasan and fresh crab dishes are regional favourites. Markets also showcase palm oil, forest produce and handicrafts.

Real Estate Market and Investment

Berau's property market splits into two segments: mainland urban property in Tanjung Redeb and island tourism investment in the Derawan group. Tanjung Redeb family homes and apartments see stable local demand from mining and oil industry employees. Tourism properties on Derawan and Maratua – bungalows, small guesthouses, dive lodges – are increasingly attractive to foreign investors, although island development is constrained by strict environmental regulations. Rental yields in the tourism segment range from 6–10%.

Practical Tips

The best time to visit the Derawan Islands is June to October, when seas are calmest and underwater visibility peaks. Book fast-boat crossings from Tanjung Batu in advance during high season. Power on the islands is generator-based, and reliable internet is limited to the larger resorts. Currency exchange and ATMs are concentrated in Tanjung Redeb, so bring cash when heading to the islands.

East Kalimantan is Borneo's largest province, where the Derawan Islands' marine paradise, the Mahakam River's culture, and the new capital Nusantara converge. The region is world-famous for diving, sea turtles, and the stingless jellyfish lake.

Where is East Kalimantan?

The province is located on Borneo's eastern coast, along the Celebes Sea. Balikpapan and Samarinda are the main cities, both with international airports. Indonesia's planned new capital, Nusantara, is currently under construction in the province's northern part.

What to See?

1. Derawan Islands – Marine Paradise

The Derawan Islands are an archipelago with crystal-clear waters where sea turtles, manta rays, and sponges await. Kakaban Island's stingless jellyfish lake is unique: the jellyfish don't sting, and you can swim among them. Sangalaki Island is a nesting site for manta rays and sea turtles.

2. Kutai National Park

Kutai National Park is one of Borneo's oldest protected areas. Orangutans, Bornean elephants, and rare bird species live here. The park spans rainforests around Sangatta.

3. Mahakam River

Indonesia's third-longest river is the stage for Dayak and Banjar culture. River cruises offer sightings of dolphins, traditional villages, and floating markets. Tenggarong and Kutai Kartanegara are historically significant towns along the river.

4. Nusantara – The New Capital

Nusantara, Indonesia's planned new capital, is currently under construction in northern East Kalimantan. The implementation is in progress, and the region is becoming an increasingly important tourism and economic hub.

5. Balikpapan and Samarinda

Balikpapan is the oil industry center, but Kumala Beach and local gastronomy are also attractive. Samarinda is the gateway to the Mahakam River, from where river excursions depart.

When to Visit?

March–October is the dry season, ideal for diving at the Derawan Islands and river tours. The jellyfish lake is visitable year-round.

How Long to Stay?

5–7 days recommended:

• 2–3 days: Derawan Islands, diving, jellyfish lake
• 1–2 days: Mahakam River cruise
• 1 day: Kutai National Park
• 1 day: Balikpapan or Samarinda

Renting or Investing in East Kalimantan?

If you're considering renting or investing in property in East Kalimantan, these resources on our site can help you make informed decisions:

• Indonesian Property FAQ – answers to the most common questions about renting and buying
• Land Zoning Guide – understanding Indonesian land use regulations
• Indonesian Real Estate Terminology – key terms explained
• Property Guide – comprehensive guide to Indonesian real estate
• Living in Indonesia – essential guide for expats
• Balikpapan Guide – local insights and practical tips

Official Resources

For further information about East Kalimantan, these official sources may be helpful:

• Indonesia Travel – official tourism portal
• East Kalimantan Provincial Government – regional government information
• Bank Indonesia – currency and exchange rate data
• BMKG – weather and climate information
• Directorate General of Immigration – visa regulations for foreign visitors

Summary

East Kalimantan is where marine experiences meet river culture. The Derawan Islands offer world-class diving, while the Mahakam River provides an authentic Borneo experience.