Jakarta (ANTARA) – President Joko Widodo (Jokowi) officiated the groundbreaking ceremony for the Indonesian Industrial Park (KIPI) in Bulungan District, North Kalimantan, on Tuesday.
“I really laud the initiative from the investors, capital owners, and CEOs, who have come and built their industry in here,” he said here on Tuesday.
Jokowi remarked that the government will start transformation of the Indonesian economy. From relying on natural resources and raw material exports, the government has now decided to start the industrialization of raw materials. The president emphasized that Indonesia should start exporting semi-finished or finished goods.
“For North Kalimantan, almost all industry products are finished goods, so they are able to provide added value for our country, as we sell them in the form of finished goods,” the President affirmed.Jokowi called this effort a leapfrog. In the next five to 10 years, the benefits of this program would have impacts on society and the government as well, he noted.
The president also urged ministers, governors, and regional heads to prepare human resources to support the industrial area.
“It is because this area requires human resources with good qualifications. Please prepare them for this,” he added.
According to Jokowi, at least 100 thousand workers will be required for KIPI’s construction period.
“During operations, we might need as many as 60 thousand workers. I estimate that the industries may absorb more than 200 thousand workers from their subsidiary companies,” he emphasized.
The Green Industrial Park is an industrial area operating with clean technology and production.The Indonesian Industrial Park in North Kalimantan, owned by PT Kalimantan Industrial Park Indonesia (KIPI) and PT Kawasan Industri Kalimantan Indonesia (KIKI), with a total area of 30 thousand hectares, is expected to be the largest industrial area in the world.
The industrial area will use new and renewable energy as the main energy source, two of which are hydropower and solar panels. In addition, electric power will be supported using gas fuel.
KIPI requires an investment of US$132 billion, or equivalent to Rp1,848 trillion, for all stages of construction and commercialization for the next eight years.
Project funding is fully provided by the private sector without any guarantee from the government.
Construction for the project is also targeted for completion in 2024, with the phased operations starting from 2023 and 2024 to 2029.
Several projects are planned to be built in the area, such as an aluminum smelter, petrochemicals, electronic aluminum, steel, new energy battery, industrial silicon, polycrystalline silicon, and solar panels.
KIPI is implemented through cooperation among Indonesia, China, and the United Arab Emirates.
Other attendees at the event comprise Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Pandjaitan, Minister of Industry Agus Gumiwang Kartasasmita, Minister of Investment Bahlil Lahadalia, Secretary Cabinet Pramono Anung, owner of PT Adaro Energy Tbk Garibaldi Thohir, as well as officials and investors from China and the United Arab Emirates.s
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