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Jakarta Post

Green industrial park in N. Kalimantan begins construction

The park will produce a range of manufactured goods, from EV batteries to green aluminum, and run on renewable energy.

Vincent Fabian Thomas (The Jakarta Post)
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Jakarta
Wed, December 22, 2021

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Green industrial park in N. Kalimantan begins construction President Joko "Jokowi" Widodo (center), PT Adaro Energy president director Garibaldi Thohir (left), Coordinating Maritime Affairs and Investment Minister Luhut Binsar Panjaitan (right) attend the groundbreaking of PT Kalimantan Industrial Park, Indonesia's first green industrial park, in Tanah Kuning, Bulungan regency, North Kalimantan, on Tuesday. (President secretariat/BPMI Setpres/Laily Rachev)

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consortium of local and foreign companies have started developing Indonesia’s first so-called green industrial park in Tanah Kuning, Bulungan regency, North Kalimantan, hoping to spur industrialization and integrate the country into the growing global supply chain for green products.

The industrial park will draw power from soon-to-be-operational hydropower and solar power plants, and will host producers of high-tech and precision products such as semiconductors, lithium-ion batteries, solar panels, industrial silicon and "green aluminum" – aluminum made using low-emission processes.

Investors from Indonesia, China and the United Arab Emirates (UAE) are behind this consortium, named PT Kalimantan Industrial Park Indonesia, led by Indonesian tycoon Garibaldi Thohir, who owns the land and who is president director of the country's second-largest coal producer PT Adaro Energy.

President Joko “Jokowi” Widodo said during a groundbreaking ceremony on Tuesday that the project would push commodity downstreaming in Indonesia, thus reducing the country's reliance on exported raw materials.

“We would no longer export raw materials, but semifinished or finished goods, and from North Kalimantan, nearly all finished goods to create added value,” he said.

Read also: Green, digital, downstream: Jokowi’s new economic strategy

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The industrial park stands on 16,400 hectares of land and could expand up to 30,000 ha.

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