[2] Palu is the center of finance, government, and education in Central Sulawesi, as well as one of several major cities on the island.

According to Indonesia's National Disaster Management Agency, the 2018 earthquake caused "the largest natural soil liquefaction phenomenon in the world".

[6] During the Tomalanggai Ere which lasted until the founding of Kaili Kingdom in the 15th century,[8] most of the inhabitants were hunter-gatherers and relatively violent.

[6] The following Tomanuru Era, in which power was consolidated and village structures became formalized, several reforms were made and life was relatively peaceful.

It was said a Tomalanggai one day wanted golden bamboos, which grew around the region, for his water container and commanded his troops to chop all of them.

During this time, kingdoms in the region started to have trade contacts with the outside world and several signs of an early form of democratic government.

[6] Contact with Europeans, particularly Portuguese, occurred since the late 16th century, mainly for trading and rights to use ports.

The uprising in this region started on 25 January 1942 when a local Dutch colonial police chief was killed and several officials were taken hostage by the movement.

In Central Sulawesi, the movement was closely connected to the one organized by Nani Wartabone in Gorontalo about the same time.

On 1 February 1942, the movement raised the Indonesian flag at Tolitoli and played Indonesia Raya, resulting in an assault by the Dutch military and the killing of several nationalist figures in the region.

Following the Dutch East Indies' conquest by the Empire of Japan, the Red and White Movement collapsed as result of the arrest of Nani Wartabone by Japanese forces.

[9][6][10] Following the surrender of Japan and Proclamation of Indonesian Independence in Jakarta, a paramilitary organization named Laskar Tanjumbulu was formed by surviving fighters of the previous Merah Putih Movement.

The paramilitaries took over several Japanese military facilities and weapons while distributing news about Indonesian Independence.

The remaining Japanese officials transferred governance to several native kings in the region including Palu before leaving.

[6] In Palu, the dissolution of the State of East Indonesia and return to a unitary republic occurred in a building today called Gedung Juang.

[11][12][6] While the city had a Dutch official seat during the colonial era, Palu was still by this time a small agriculture town with little significance, while Central Sulawesi region's economic and political activities were centered around Poso and Donggala.

[6] The province was established on 12 April 1964 due to demand from student groups for its creation to represent the region.

[4] In the aftermath of the disaster, several calls by politicians were made to relocate the capital city of Central Sulawesi away from Palu due to its vulnerability to earthquakes.

[20] The Palu–Koro Fault runs for around 300 km (190 miles) through Palu Bay, cutting into the middle of the city, and is connected to a subduction zone in northern Sulawesi.

[20][21] Palu has a tropical rainforest climate (Köppen Af), although it is relatively dry due to the strong rain shadow of the surrounding mountains.

[29][30] Palu is part of 1st Central Sulawesi electoral district, which consists of only the city itself, and has 6 representatives of 45 seats in the provincial parliament.

As the capital of Central Sulawesi, Palu is the location of the governor's office and the seat of the provincial parliament.

[35] Palu's manufacturing and processing industry consisted of 1,860 registered large-scale companies that employ 9,339 people in 2020.

[34] The city is the location of Palu Special Economic Zone, which hosts companies focusing on processing of agricultural and mineral products.

[34] Tourism and the hotel industry in Palu has declined since 2018 due to that year's earthquake and tsunami[39] and the 2020 COVID-19 pandemic.

[35] The city has several insurance companies and is the location of the Central Sulawesi branch of Indonesia Stock Exchange.

[6] There was also brief tension between Bugis and Kaili people due to perceived economic differences, resulting in riots at traditional market in 1992 and 2004.

[54][55] Palu's literacy rate is relatively high at 99.60% for people between 15 and 19 years old, and 99.84% on average in the wider city population.

[65] Nusantara Gong of Peace located in the site weights 180 kilograms (400 lb) and has a diameter of two meters (6.6 ft).

[46] Prominent newspapers in the city include SultengRaya, Tribun Palu, and the media wing of Alkhairaat.