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    Home/Indonesia/East Kalimantan/Penajam Paser Utara/Penajam/Riko

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    Penajam, Penajam Paser Utara, East Kalimantan

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    About Riko

    Riko – the eastern part of Kalimantan Timur, as part of Penajam Paser Utara Kabupaten

    Riko is a settlement within Penajam Paser Utara Kabupaten (regency), located in Kalimantan Timur (East Kalimantan) province. The settlement belongs to Penajam kecamatan (district) on the eastern territory of Borneo island. Kalimantan Timur itself occupies the eastern third of the island, and its most well-known area is Samarinda, which is literally the largest city on all of Borneo. Riko is part of the Indonesian Kalimantan region which, according to the 2020 census, exceeded 3.7 million inhabitants in Kalimantan Timur province, and 2025 projections estimate approximately 4.3 million residents already living here.

    General overview

    Riko is a small settlement classified within Penajam kecamatan. Penajam Paser Utara Kabupaten has been considered a significant development zone in Kalimantan Timur in recent years, partly due to the energy sector and resource management. The Indonesian Kalimantan region is generally known as a secluded, less tourism-developed area compared to the western parts of the country. Publicly available sources do not provide detailed information about Riko's population, specific economic characteristics, or community infrastructure, indicating that this is a smaller settlement of local significance. The settlement is located at 116.49° east longitude and 1.10° south latitude, a position close to the eastern coast of the Indonesian island of Borneo.

    Penajam Paser Utara Kabupaten is a larger administrative unit known in recent decades for coal and oil industries alongside agricultural and forestry activities. Like other parts of Kalimantan Timur, this region is mineral-rich and relatively developed in terms of resources. Areas of this type generally require complex transportation infrastructure for connection to the country's center. Riko functions as an organic component within this segment of the region.

    Real estate and investment

    Riko and its immediate surroundings are not a publicly recognized real estate market center, however Penajam Paser Utara Kabupaten as a whole sees gradually growing investor interest thanks to renewable energy-based development and industrial expansion. Real estate market movements in the Kalimantan Timur region are generally driven by resource exports, the oil industry, coal mining, and related infrastructure development. In recent years, the construction of Nusantara, the new capital, which is entirely taking place in Kalimantan Timur province, has opened new investment and real estate market segments in the region, though this has not yet had a measurable direct impact on Riko settlement.

    The Indonesian real estate market is more restricted for foreigners than in many other countries. Indonesian law generally does not permit foreigners full property ownership over the long term, however there are opportunities through long-term leases or cooperative rights acquisition. The real estate market in Kalimantan Timur is less developed than the country's tourism centers due to its remote location and primarily industrial character. Smaller settlements like Riko are typically characterized by agriculture, forestry, and local trade as the foundation of the local economy. Average property prices are lower than the country's average, however localized price increases can be observed around specified projects (oil and coal facilities, infrastructure).

    Safety and security

    Kalimantan Timur province can generally be described as reflecting the country's reliable security situation, however like many resource-rich areas of the country, illegal mining, timber trafficking, and related organized activities can emerge in certain places. The region as a whole has evolved toward greater stability over the past decades, in parallel with infrastructure improvements. On Kalimantan island generally, ethnic and religious conflicts pose greater risks compared to some other parts of the country, however Kalimantan Timur itself enjoys relative stability.

    Riko, as a small settlement, likely benefits from community-level local security where community-based solutions and local networks play a role. Compared to larger settlements, organized crime that is well-known in larger areas is less evident in such settlements, however transportation safety and weather-related risks (heavy rainfall, floods, unpredictable travel conditions) can be variable throughout the year. In Indonesia, as elsewhere in the world, it is advisable to follow local authorities' guidance and instructions, and to be sensitive to customs unfamiliar from one's home country.

    Tourist attractions

    Riko settlement itself does not figure among the main destinations in international tourism projections. There is no verifiable publicly available information about specific named tourist attractions relating to the settlement. However, the settlement is part of Penajam Paser Utara Kabupaten, which is a wider region, and the entire Kalimantan Timur area is known for its natural resources, rainforest biodiversity, and local culture.

    Kalimantan Timur generally represents the rainforest and wilderness character of Borneo island. Cities such as Samarinda (the provincial capital) feature the Mahakam River, which ranks among the country's longest rivers. Larger settlements such as these attract a portion of tourism, however Riko and its immediate vicinity do not lie on publicly developed tourism routes. Limited though not widespread local tourism is mainly restricted to ethnic culture, natural resources, and places where logistical access is simpler. Around the settlement, jungle terrain and local agricultural activities can be observed, however these are difficult to identify as systematically organized tourism.

    Those who travel to Kalimantan Timur generally focus on Samarinda itself or the province's larger centers, where better infrastructure, accommodation, and organized tourism opportunities are available. Riko is an area primarily suited for learning about the local economy and Indonesian rural life, rather than for average tourism projections. Adventure seekers or research-oriented tourists who wish to discover authentic Kalimantan life might potentially be interested in such places, however these generally operate in an underdeveloped state and function in the absence of traditional tourism infrastructure.

    Summary

    Riko is a small settlement of local significance within Penajam Paser Utara Kabupaten, located in the eastern part of Kalimantan Timur. Specific economic, tourism, or demographic data relating to the settlement is not available from publicly accessible sources, indicating that this is an average local community with underdeveloped infrastructure. Penajam Paser Utara Kabupaten and Kalimantan Timur itself are resource-rich but still developing regions of the country, situated on the eastern third of the Indonesian island of Borneo. Real estate investment opportunities exist but are limited, operating in a manner concentrated around industrial projects. Public security is generally adequate, alongside the broader region's stability. Tourism is not the settlement's main profile; it is primarily the setting for local economy and community life.


    More about Penajam

    Penajam – Capital of PPU and the Balikpapan Bay Gateway to IKN Penajam is the capital city district of Penajam Paser Utara Regency – the urban commercial and administrative centre…

    Penajam – Capital of PPU and the Balikpapan Bay Gateway to IKN

    Penajam is the capital city district of Penajam Paser Utara Regency – the urban commercial and administrative centre of the regency that has been thrust into global significance by the decision to build Indonesia's new national capital, IKN Nusantara, in the adjacent Sepaku district. The city sits on the western shore of Balikpapan Bay, directly across from Balikpapan, and has long been connected to the oil city by ferry service that is the primary crossing for residents who work in Balikpapan but live in the more affordable PPU. This geographic position – essentially within the greater Balikpapan metropolitan area but separated by water – has given Penajam a commuter city character that is now being transformed by the IKN development into something much more significant. The regency government and the IKN Authority (OIKN) have invested heavily in the Penajam waterfront and city infrastructure, anticipating the growth in government, services and population that the new capital will bring. The bay crossing remains a key piece of infrastructure, and plans for a bridge connecting Penajam to Balikpapan have been in discussion for years.

    Tourism & Attractions

    Penajam offers the best views of Balikpapan Bay from the PPU side – the bay is wide and scenic, with the oil city of Balikpapan on the opposite shore and the constant movement of ferries, fishing boats and industrial vessels creating a dynamic maritime scene. The mangrove forests along the PPU shore of the bay support prolific birdlife, and the bay's calm waters provide pleasant boat journey experiences. The growing commercial area in Penajam city reflects the increasing investment flowing into the IKN support infrastructure. The nearby IKN construction site in Sepaku (accessible by road) is accessible for authorised visitors and provides a once-in-generation opportunity to see a national capital being built from scratch.

    Real Estate Market

    Penajam has the most developed property market in PPU outside of the immediate IKN construction zone in Sepaku. Commercial properties in the city centre serve the growing administrative and services economy. Residential estates have proliferated to accommodate the influx of government employees, construction sector workers and professionals attracted by the IKN development. The bay waterfront has attracted hospitality investment targeting both the growing business visitor market and the domestic tourists curious about the new capital. Land prices in the city and its immediate surroundings have risen dramatically since 2019, with some parcels showing appreciation of over 300% from pre-IKN levels.

    Rental & Investment Outlook

    The IKN development creates exceptional rental demand across all property categories – government officials, construction executives, consultants and support service providers all need accommodation in Penajam as the nearest urban centre to the construction site. Commercial rental from government support services, legal and financial firms, media organisations and IKN-related businesses is strong. The bay crossing ferry service creates a commuter housing market from Penajam to Balikpapan that provides residential rental demand independent of IKN. Long-term, as IKN develops from a construction project into an operational capital, Penajam's role as the urban hub will become increasingly valuable. The investment case is strong but requires careful due diligence given the rapid price appreciation and potential for overvaluation in certain sub-markets.

    Practical Tips

    Penajam is accessible from Balikpapan by ferry (approximately 30 minutes across the bay) or by road via the coastal highway (approximately 1.5–2 hours). The ferry service operates regularly and is the most convenient connection. For IKN site visits, access requires advance authorisation through the OIKN (IKN Authority) – arrange through official channels well in advance. Property transactions in PPU require specific attention to the IKN master plan zoning, which designates specific land uses that affect development rights. Work with a local notary or property lawyer with specific PPU-IKN expertise. The bay waterfront in the evening is pleasant and provides good seafood restaurant options reflecting the maritime culture of the regency.

    More about Penajam Paser Utara

    Penajam Paser Utara – Nusantara, Indonesia’s New CapitalPenajam Paser Utara (PPU) Regency lies in the southern part of East Kalimantan province, on the southern shore of Balikpapan…

    Penajam Paser Utara – Nusantara, Indonesia’s New Capital

    Penajam Paser Utara (PPU) Regency lies in the southern part of East Kalimantan province, on the southern shore of Balikpapan Bay. Its capital is Penajam. The region is the site of Indonesia’s new capital, Nusantara (IKN) – the country’s largest infrastructure project.

    Attractions and Activities

    Nusantara (IKN) construction site can be visited. Remaining Borneo rainforest with orangutans. Balikpapan Bay coastline. Nipah-Nipah mangrove forest and beach.

    Culture and Cuisine

    Paser Dayak and immigrant cultures blend. Cuisine is Borneo: ikan bakar, soto banjar, nasi kuning.

    Public Safety

    PPU is a safe region, but construction areas are restricted. Medical care: hospital in Penajam; Balikpapan (approx. 30 minutes by ferry) has advanced facilities.

    Practical Information

    From Balikpapan, approximately 30 minutes by ferry or via Balikpapan Bay bridge. The best time to visit is March to October. Accommodation: simple hotels.

    More about East Kalimantan

    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…

    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.

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