"There is huge investment potential in the fisheries, oil and gas industry sector, and the development of the electrical vehicle (EV) or electric car ecosystem," Governor of North Kalimantan Zainal A. Paliwang stated in Tanjung Selor, Tuesday.
"And this is what we continue to offer in meeting forums and event directly to investors," he remarked.
The offer was made due to the existence of the Tanah Kuning-Mangkupadi Indonesian Green Industrial Zone (KIHI) that is integrated with the port and the Mentarang River hydro power plant (PLTA) in Malinau District and the PLTA of Peso in Bulungan District.
"Strategic projects can be the main attraction for investors, which are also supported by the natural resources that North Kalimantan has," he noted.
KIHI's construction in East Tanjung Palas Sub-district, Bulungan District, began in 2021. Construction has been ongoing since President Joko Widodo laid the first stone for the project on December 21, 2021.
KIHI of Tanah Kuning is a National Strategic Project (PSN), with an investment value of US$132 billion, and a development target area of 30 thousand hectares.
KIHI will become the largest green industrial area in the world that prioritizes sustainable and environmentally friendly industrial processes.
The area will accommodate various types of industries, including mineral refining and processing, warehousing, property, trade, and commerce.
One of the leading industries being built in the area is a petrochemical factory that is projected to become the largest in Indonesia, with a capacity of 4x16 million tons per year.
In the area, the green energy industry is also being developed, such as through the construction of solar panels, green aluminum smelter, new energy batteries, and industrial and polycrystalline silicon.
Construction of KIHI's basic infrastructure has begun, including access roads, electricity networks, and telecommunications.
Paliwang stated that abundant access to energy paves the way for new industries to develop rapidly in North Kalimantan.
He also emphasized that the North Kalimantan provincial government, in coordination with the central government and other local governments, is ready to provide easy licensing and attractive incentives for investors.
The governor explained that North Kalimantan has abundant natural resources, such as fish, oil and gas, and natural gas. Those are the main capital for developing the fisheries sector and the oil and gas industry as well as for strengthening LNG distribution channels.
In the fisheries sector, North Kalimantan has a long coastline and abundant potential for marine products.
Tanah Kuning-Mangkupadi KIHI provides an ideal space for the development of marine product processing industries, such as fish processing and animal feed factories.
Meanwhile, in the oil and gas sector, North Kalimantan has quite large oil and gas reserves. The Mentara River PLTA and the Peso PLTA will provide the energy required for the oil and gas industry, such as power plants and oil refineries.
One of them is the discovery of gas reserves in the Tarakan Basin, Nunukan Block, Parang 1 location, by Pertamina. The block has 74 MMBO of oil and 852 BSCF of natural gas, or a total of 221 MMBOE, which is the sixth-largest oil and gas field in the world.
Due to its strategic position and being located on the border, North Kalimantan can serve as a driver of the national and regional economy, especially the border area between Indonesia and Malaysia.
Any excess supply of energy can be exported directly to neighboring countries.
"North Kalimantan can contribute to Pertamina's role and duties as the backbone of the national oil and gas industry and a leading BUMN in carrying out national missions at the world level," the governor stated.
Earlier, while laying the first stone for the construction of the Mentarang PLTA in Malinau District on March 1, 2023, President Joko Widodo had stated that KIHI of Tanah Kuning-Mangkupadi would be a production site for electric vehicles.
"(It is) because what we will build later in the Indonesian Kalimantan Industrial Park area in Bulungan is the first EV battery, batteries for electric cars, plus the electric cars will be there later," President Joko Widodo stated at that time.
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Translator: Muh. Arfan, Cindy Frishanti Octavia
Editor: Azis Kurmala
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