In future, KIHI, which is included as the National Strategic Project (PSN), will become an area that has high economic value
Tarakan, N Kalimantan (ANTARA) - Transportation Minister Budi Karya Sumadi projected that development of the Tanah Kuning-Mangkupadi Indonesian Green Industrial Estate (KIHI) in Bulungan District, North Kalimantan, would have a high economic value.

"In future, KIHI, which is included as the National Strategic Project (PSN), will become an area that has high economic value," Sumadi noted in Bulungan, Saturday.

The minister also lauded the work of related parties that fully supported the development of KIHI.

He later remarked that the region required adequate planning to avoid problems in future and to maintain the region's economic value that would increase in tandem with the development.

Sumadi highlighted that KIHI, with 30 thousand hectares of land, was the largest green industrial area in the world. The area will be managed by four industrial companies: PT. Kalimantan Industrial Park (KIPI), PT. Kawasan Industri Kawasan Indonesia (KIKI), PT. Indonesian Strategic Industries (ISI), and PT. Kayan Patria Propertindo.

The total investment value plan for KIHI amounts to Rp1,800 trillion from private funding. KIHI is estimated to absorb approximately 60 thousand construction workers and in construction service.

In order to accelerate the development of KIHI port, the Ministry of Transportation is currently finalizing several permits related to port construction.

Sumadi said that KIHI is included in the Indonesia Archipelagic Sea Lane (ALKI) II that encompassed the Lombok Strait, Makassar Strait, and the Sulawesi Sea, with potential for international trade. The route had become the main support from the congested Malaka Strait.

Related to the acceleration of industrial area development, the ministry is expediting licensing processes that are targeted to be completed by the end of August 2022.

Sumadi also urged the regions to support the environmental impact analysis (Amdal) of the port since the region was designed to be built on an ideal environmental basis.

The minister suggested residents affected by infrastructure development to be immediately included in the development of the industrial area.

Earlier, the minister of transportation had reviewed the location of KIHI in area 2 of the Aluminum Smelter of PT. Kalimantan Aluminum Industry in Mangkupadi Village, East Tanjung Palas Sub-District, Bulungan District, North Kalimantan Province.

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Translator: Susylo Asmalyah, Resinta S
Editor: Sri Haryati
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