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Indonesia Targets to Complete Industrial Area Project in North Kalimantan Within 4 Years

Translator

Najla Nur Fauziyah

Editor

Laila Afifa

18 June 2024 10:43 WIB

TEMPO.CO, Jakarta - Indonesian Coordinating Minister for Maritime and Investment Affairs Luhut Binsar Pandjaitan targets four years to complete the construction of industrial areas in North Kalimantan.

"From the meeting with the NDRC (National Development and Reform Commission), we hope to start the groundbreaking in the next month and commence the construction. I believe (the construction) will be concluded in four years,” said Luhut in Shanghai on Sunday, June 16, 2024, as quoted from Antara.

During his working visit to China last Wednesday, Luhut visited several cities and regions such as Beijing, Jilin, and Shanghai. He met with Chinese Foreign Minister Wang Yi, the Head of China's NDRC Zheng Shanjie, officials from Tsinghua University, and Chinese businessmen.

Luhut also requested specifically for the NDRC to support the construction of the North Kalimantan industrial area. During his meeting with NDRC Head Zheng Shanjie last Wednesday, Luhut said the industrial area would house one of the largest petrochemical factories in Asia with a capacity of 4x16 million tons per year.

Previously, the industrial area was discussed at the bilateral meeting between President Joko Widodo or Jokowi and Chinese President Xi Jinping on July 27, 2023. They discussed the joint call for companies in the petrochemical and hydropower sector in North Kalimantan.

The green industrial area covers around 30 hectares in Bulungan Regency, North Kalimantan, and is expected to have an investment value of up to US$132 billion or around Rp2,174 trillion. It is located 185 kilometers from the Nusantara Capital City or IKN.

In addition to the petrochemical factory, the industrial area would also be home to an alumina smelter facility with a capacity of three million tonnes. The government also plans to establish an iron and steel factory with a capacity of five million tons per year, an EV battery factory, and a polycrystalline silicon factory with 1.4 million tons capacity.

ANTARA

Editor’s Choice: Chinese National Detained Over Illegal Gold Mining Activities in Kalimantan

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