Properties in Gas Alam Badak I

Muara Badak – Source of East Kalimantan's LNG Wealth and Coastal Gas Country

Muara Badak holds a special significance in East Kalimantan's energy history: the Badak gas fields beneath this coastal district and its offshore waters are the primary source of the natural gas that feeds Bontang's Badak LNG plant – for many years the world's largest LNG facility. The name "Badak" means rhinoceros in Indonesian, though the animal is long gone from this heavily industrialised coastline. The gas was discovered in the 1970s and has been producing ever since, generating revenue for PT Pertamina, the Indonesian government, East Kalimantan province and Kutai Kartanegara Regency that has funded decades of infrastructure investment. Above ground, the district is a mix of oil and gas facilities (wellheads, compressor stations, processing plants, pipelines), traditional coastal fishing villages, seaweed farming operations in the coastal shallows, and palm oil cultivation on the drier inland sections. The gas production infrastructure – stainless steel pipes, flaring towers, the constant hiss of high-pressure equipment – creates an industrial landscape that is unique to the gas country of East Kalimantan.

Tourism & Attractions

The gas industry infrastructure, while not conventionally "scenic," is genuinely impressive in its scale and precision. The network of pipelines that runs from Muara Badak's wellfields to the Bontang LNG plant represents one of the most significant pieces of industrial infrastructure in Southeast Asia. The coastal fishing community life that exists alongside this infrastructure is an interesting cultural juxtaposition – families who have fished the Makassar Strait for generations continue their traditional practices in the shadow of natural gas compressor stations. Seaweed (Eucheuma) farming visible in the coastal shallows provides a more traditional economic activity and creates distinctive floating rope structures that are photogenic and informative about aquaculture practice.

Real Estate Market

The oil and gas industry dominates the commercial real estate landscape. Worker accommodation compounds, processing facility support buildings, logistics yards and technical service facilities occupy significant portions of the industrial zone. Residential property serves the permanent community of gas field workers and their families, as well as the supporting services population. The district has benefited economically from the gas revenues, which have funded better infrastructure than most comparable coastal Kalimantan districts. Land values reflect the high economic activity of the energy industry, though the eventual decline of gas production will be a long-term factor to consider.

Rental & Investment Outlook

Gas industry operations provide exceptionally stable commercial rental demand – Pertamina and its partners require long-term facility commitments that create reliable tenants for industrial and residential properties. Seaweed farming investment in the coastal aquaculture zone generates agricultural income with low capital requirements. Fishing industry cold chain investment serves the traditional fishing community that predates and coexists with the industrial economy. The timing of gas field depletion is a key long-term consideration – current projections suggest continued production for at least another decade, but the transition planning for post-gas economic activity is relevant for long-horizon investments.

Practical Tips

Muara Badak is approximately 45–60 minutes north of Tenggarong by road. Oil and gas facilities are operated under strict safety protocols – maintain required distances from all infrastructure, and do not approach fenced-off areas. The seaweed farming areas in the coastal shallows are best viewed from the shore or from small boats – the farming families are usually willing to explain their operation. Fresh fish from the coastal market in the morning is the culinary highlight. Mobile coverage is good along the main road. For business visits to Pertamina or its contractors, formal access arrangements through the respective companies' security and HSE departments are required before arrival.

Kutai Kartanegara – The Kutai Sultanate and the Mahakam River in East Kalimantan

Kutai Kartanegara Regency lies in the centre of East Kalimantan province, along the lower-middle section of the Mahakam River. Its capital is Tenggarong, approximately 30 km from Samarinda. The region is the heir of the historical Kutai Sultanate – one of Indonesia’s oldest (4th century) Hindu kingdoms.

Attractions and Activities

Mulawarman Museum in Tenggarong operates in the Kutai Sultanate palace: sultanate crowns, weapons, Dayak artefacts and Hindu-era inscriptions. Kumala Island (Pulau Kumala) on the Mahakam River is a recreation park. Boat tours on the Mahakam can be arranged: Irrawaddy dolphins can be observed near Muara Muntai. Samboja Lestari (Borneo Orangutan Survival Foundation) is an orangutan and sun bear rehabilitation centre in Samboja.

Culture and Cuisine

The Kutai Sultanate’s Malay and Dayak heritage: the Erau Festival in Tenggarong is held annually – sultanate traditions, Dayak dances and water sports. Amplang (fish cracker) is Kutai Kartanegara’s most famous snack. Cuisine is Kalimantanese: nasi kuning (yellow spiced rice), ayam cincane (spiced chicken) and udang galah (giant river prawn).

Public Safety

Kutai Kartanegara is a safe region. Watch for traffic when boating on the Mahakam. Medical care: basic hospital in Tenggarong; Samarinda (approx. 30 minutes) has full hospital facilities.

Practical Information

From Balikpapan Sepinggan Airport, approximately 2 hours north by car. From Samarinda, approximately 30 minutes. The best time to visit is May to September. Accommodation: hotels in Tenggarong and Samarinda.

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.