Luhut Brings Good News: 10 Chinese Investors Are Ready To Build Green Industrial Estates In North Kalimantan

Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Pandjaitan. (Photo: Doc. Kemenko Marves)

JAKARTA - Coordinating Minister for Maritime Affairs and Investment (Kemenko Marves) Luhut Binsar Pandjaitan revealed that there are already 10 large investors from China who are ready to build the Indonesian Industrial Park Area (KIPI) in Bulungan Regency, North Kalimantan.

"There are 10 big investors from China. They are investors who have proven to have a very good track record of investment and have invested tens of billions of dollars for downstream nickel in Indonesia in recent years," he said at the Groundbreaking event for the Indonesian Industrial Park (KIPI) in Bulungan Regency, North Kalimantan, Tuesday, December 21.

Luhut said, his party conducted roadshows to several countries such as the United States, Europe, the United Arab Emirates (AUE) to China to offer investment opportunities in green industrial areas in North Kalimantan. This was done on a direct order from President Joko Widodo (Jokowi).

Luhut said that the investor's response was initially normal, but towards the end of 2019 they showed their interest in the Green Industrial area project. Luhut said that these investors would build the industry first.

Then, said Luhut, it will be continued by building a Steam Power Plant (PLTU) which will be used for the next 10 to 15 years during the transition to hydropower.

"It takes courage and good execution as well as a great strength to realize hydropower in this industrial area. More than that is a political decision from the president who fully supports this project," he said.

Luhut estimates that for the construction of the hydropower plant alone, funds of at least 10 billion to 15 billion US dollars are needed. Not to mention, said Luhut, for the port that must be built jutting into the middle of the sea because of its shallow depth.

"This requires no small amount of funds. At least almost 1 billion US dollars for port development alone," he said.