TEMPO.CO, Jakarta - President Joko "Jokowi" Widodo is scheduled to lead a groundbreaking ceremony of an aluminum smelter worth $2 million in North Kalimantan in December this year.

"The majority of the investment come from Indonesian companies," said Deputy of Investment and Mining Marves Septian Hario Seto in Tempo's online discussion, Tuesday, Nov. 23.

He did not detail the name(s) of the company. But in 2020, PT Indonesia Asahan Aluminium stated that they were discussing the potential of constructing a new smelter in North Kalimantan.

Smelter construction is one of the ways to support the development of International Port and Industrial Area (KIPI) in East Kalimantan. This area is reportedly to receive investment worth around $100 million cumulatively until 2030.

Aside from aluminum, other industries such as electric battery, petrochemical and green industries will also be build. Seto claimed the development of KIPI will absorb a significant numbers of workers.

With the investment, the development of KIPI can massively grow the economy and provide jobs for 50,000 people. "In 5 to 10 years, KIPI will be better than Konawe and Morowali because it is 4 times bigger [than those two area]," Seto said.

Based on the industrial development map, North Kalimantan is expected to contribute 20% to 30% of the national export.

FRANCISCA CHRISTY ROSANA | Graven (Intern)