Balikpapan: the oil city on the bay

Balikpapan is an oil town that became a city. The first well was drilled in 1897, and the refinery and the port have shaped everything since: the grid of streets, the company housing, the expatriate clubs, the seafood restaurants that feed the workers. It is one of the wealthiest cities in Kalimantan, and one of the most expensive.

It is not beautiful in the way that Yogyakarta or Ubud are beautiful. But it has a good waterfront, a couple of decent beaches, excellent seafood and a genuine sense of a place that works. And it is the gateway to the Mahakam, to the Derawan islands and, increasingly, to Nusantara, the new capital being built in the hills to the west.

Oil and the city

The oil is still there, though the easy fields are past their peak. The refinery at the south end of the city is a landmark of sorts, and the pumpjacks in the hills behind the town are a reminder of what pays for the roads. The Dutch built the first infrastructure, the Japanese occupied it in the war, and the Indonesians took it over in 1945.

The industry brought people from across the archipelago and beyond: Javanese, Bugis, Batak, Chinese and Europeans, each with their own food and their own quarter. That mix is still visible in the markets and the restaurants, and it is why Balikpapan feels more cosmopolitan than its size suggests.

The waterfront and the beaches

Pantai Manggar, east of the centre, is the city's beach: a long strand of grey sand backed by mangrove, with food stalls and a promenade. It is not a tropical postcard, but it is pleasant at sunset and busy at weekends. Pantai Kemala, closer to town, is smaller and more local.

The bay itself is the city's best feature. The waterfront promenade runs along the harbour, with views across to the oil terminals and the islands beyond. In the evening it fills with families, food carts and joggers. It is the kind of ordinary civic space that many Indonesian cities lack, and it makes the city liveable.

Food and the market

Balikpapan is a seafood city. The restaurants around the harbour serve crab, prawns, grouper and shellfish, priced by weight and cooked with sambal, garlic or a sweet soy sauce. The best are not on the tourist trail: they are in the lanes behind the port, where the fishermen unload and the families have been cooking for generations.

The markets are worth a morning. Klandasan, near the waterfront, sells fish, fruit, vegetables and the small snacks of the region. Look for amplang, a crisp fish cracker, and the local coffee. The city is also well supplied with the chains and malls that come with oil money, which is useful if you need supplies before heading into the interior.

Getting there and moving on

Sultan Aji Muhammad Sulaiman Sepinggan airport is one of the busiest in Kalimantan, with flights to Jakarta, Surabaya, Makassar and most cities in Borneo. The terminal is modern and the taxi ride into town is short. Ferries run to the Derawan islands and to ports along the coast, and the roads west lead to Samarinda and the Mahakam.

The city is the natural base for the Derawan archipelago, for the Mahakam river and for Nusantara, the new capital under construction. Each is a day trip or an overnight, and each is different: reefs, river and a city being built from scratch in the forest. Allow time for the traffic, which is the one thing oil money has not solved.

• Eat seafood near the harbour, priced by weight.
• Pantai Manggar is best in the late afternoon.
• Use the city as a base for Derawan and the Mahakam.
• The airport is modern and close to the centre.
• Expect higher prices than elsewhere in Kalimantan.

Costs and practicalities

Balikpapan is the most expensive city in Kalimantan. Hotel rooms cost more than in Samarinda or Banjarmasin, restaurant prices are higher, and taxis are not cheap. The upside is that everything works: the airport is excellent, the hospitals are good, the roads are paved and the internet is fast.

The city is a base rather than a destination, so plan it as one. A day for the waterfront, the beach and the seafood is enough; two if you want to see the oil fields or take a trip to Nusantara. Book ahead in the dry season and around long weekends, when the city fills with business travellers and divers.

August to October can bring smoke haze from land clearing, which occasionally disrupts flights. The wet season, November to April, brings heavy afternoon rain and rough seas, which affects the ferries to Derawan. Whatever the season, allow a buffer day before an international connection.

Questions people actually ask

Is Balikpapan worth a stop?

Yes, for a day or two: the seafood, the waterfront and the beaches are good, and the city is the transport hub for Derawan, the Mahakam and Nusantara. It is not a destination in its own right for most travellers, but it is a comfortable and useful base.

How do you get from Balikpapan to the Derawan islands?

By road north to Tanjung Redeb in Berau, then by boat to Derawan, or by ferry from Balikpapan harbour. The road takes most of a day; flights to Berau are faster. Boats are weather-dependent, so allow a buffer at each end.