KIHI Development Targeted To Be Completed In 4 Years

DOC/Governor of Kaltara Zainal A Paliwang accompanied President Joko Widodo's visit in the context of the groundbreaking of KIHI Tanah Kuning-Mangkupadi some time ago.

TANJUNG SELOR - Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Pandjaitan targets the construction of industrial estates in North Kalimantan or Kaltara to be completed in four years.

"From the meeting with the NDRC (National Development and Reform Commission) we hope that in the next month it can be grounded, the construction has started. I think it will be completed within four years," said Luhut, Sunday, July 21.

During his working visit to China some time ago, Luhut visited a number of cities and areas such as Beijing, Jilin and Shanghai. There he met Chinese Foreign Minister Wang Yi, China's National Development and Reform Commission (NDRC) Head Zheng Shanjie, officials from Tsinghua University and Chinese businessmen.

Luhut also specifically requested that NDRC support the implementation of the Kaltara industrial area. When meeting with the Head of NDRC Zheng Shanjie, Luhut even said that one of the factories in the industrial area would become the largest petrochemical factory in Asia with a capacity of 4\times16 million tons per year.

Previously, the industrial area in Kaltara was also discussed at a bilateral meeting of President Joko Widodo or Jokowi and Chinese President Xi Jinping on July 27, 2023. They discussed the company's joint call in the field of petrochemicals and hydrochemicals and hydropower in Kaltara.

The green industrial area covering an area of about 30 hectares in Bulungan Regency, North Kalimantan (Kaltara) is estimated to have an investment value of up to US$ 132 billion or around Rp 2,174 trillion. The location of the area is only 185 km from the capital city of the archipelago (IKN).

In addition to the largest petrochemical factory in the country, there is also a plan to build an alumina processing and refining facility (smelter) with a capacity of three million tons in the industrial area. Next, there is a plan to build an iron and steel factory (iron and steel) with a capacity of five million tons per year.

There is also a plan to build an electric vehicle battery factory and a New Renewable Energy (EBT) based plant with a capacity of 265 Giga Watt hour (GWh). Finally, there is a plan to build a polycrystalline silicon factory with a capacity of 1.4 million tons.

The Governor of Kaltara, Zainal A Paliwang, said that Kaltara needed investment to boost regional income.

"Blue economy and green economy in the green energy concept are being intensively carried out again," said the Governor of Kaltara, Monday, July 22.

"Many investors are pursuing this geothermal, solar panel, power plant, hydropower, these are very promising future investments," he continued.

Therefore, investment is needed for development in Kaltara, especially regional development. The number of investments is considered capable of creating large jobs and increasing people's income and purchasing power as well as equitable economic screening.

The Governor of Kaltara revealed several investment potentials in Kaltara that can attract investors such as the construction of the Bebatu Port in Tana Tidung Regency. Hotels and Restaurants (MICE Construction) in Tana Tidung Regency and Malinau Regency, the seaweed downstream industry in Nunukan Regency and Tarakan City.

"The strategy to increase investment realization in Kaltara is to prepare and implement good governance through the Integrity Zone (ZI), Corruption-Free Region (WBI), Integrity Facts (FI) and online-based licensing services facilities," he concluded.