Penajam Paser Utara (ANTARA) - The government of North Penajam Paser District, East Kalimantan Province, has partnered with a South Korean investor through PT Informasi Geo Sistem (IGS) with Rp300 billion in investment commitment to develop the region’s agricultural sector.

“In June 2025, we signed a memorandum of understanding. However, legal aspects, fund distribution systems, and budget allocation still need to be discussed,” Head of the district government's Planning, Research, and Development Agency (Bapelitbang) Tur Wahyu Sutrisno said here on Wednesday.

The collaboration is part of a grant assistance program of the South Korean government, which is aimed at supporting agricultural and food development in Indonesia through the Ministry of Agriculture. It presents a strong opportunity for local development.

As disclosed on its official website, PT IGS is a company engaged in software development & network and computerized business which has revolved into smart city consulting firm.

According to Sutrisno, PT IGS is one of the companies that received grant funding from South Korea with implementation planned over three years.

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Discussions regarding the grant disbursement mechanism are ongoing. It remains unclear whether the funds will be transferred directly to local government accounts or channelled through the central government.

The Rp300 billion grant is expected to be used for developing agricultural infrastructure, smart farming programs, improving the capacity of farmers and agricultural extension workers, and cultivating high-quality rice seeds.

The North Penajam Paser district government is currently completing administrative documents, including letters of support from both the regency and provincial governments, for the program.

Sutrisno said that the grant process will take time since it will involve intergovernmental cooperation between Indonesia and South Korea.

The Rp300 billion fund is aimed at enhancing and developing the agricultural sector in North Penajam Paser District, which has significant potential, particularly in rice production and agro-tourism.

The district boasts vast agricultural land spanning about nine thousand hectares, which is supported by 700 farmer groups. Its productive rice fields cover around 7,900 hectares across four subdistricts.

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Translator: Primayanti
Editor: Rahmad Nasution
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