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Jakarta Post

Private consortium to build U$6.5b industrial zone in N. Kalimantan

  • Rachmadea Aisyah

    The Jakarta Post

Jakarta   /   Thu, February 14, 2019   /   10:51 am
Private consortium to build U$6.5b industrial zone in N. Kalimantan Representatives from the governments of Indonesia and South Korea attend a kick-off meeting on the feasibility study of Tanah Kuning-Mangkupadi international port and industrial zone development in North Kalimantan on Feb. 13. Korea-based company PT Dragon Land has come forward with a US$6.5 billion investment proposal to develop the area. (JP/Rachmadea Aisyah)

A private consortium led by a Korean company is set to invest approximately US$6.5 billion to build an industrial zone, a seaport and a coal-fired steam power plant (PLTU) in North Kalimantan.

The company, PT Dragon Land, announced on Wednesday it would develop a 5,664-hectare area within the Tanah Kuning-Mangkupadi international port and industrial zone allocated for mineral processing companies. 

Dragon Land chairman Lim Yong said the project was backed by the South Korean government, which agreed to grant the Indonesian government $600,000 for the project’s feasibility study.

“Six firms have expressed their interest as partners to invest [in the project],” Yong said in an exclusive interview with The Jakarta Post following a kick-off meeting between the company and officials representing both countries. “They come from South Korea, Japan, Australia, as well as Europe.”

Dragon Land director Santy said the project had acquired the necessary permits from the online single submission system.

“After we finish the feasibility study and the environmental impact analysis, we need three to four years to build the seaport and less than three years for the PLTU,” she said on the same occasion. “Meanwhile, we would try to finish all the infrastructure for the industrial zone in under a year.”

Chang Ki-Wook, director for port investment cooperation at the Korean Ministry of Oceans and Fisheries, said the $600,000 grant would allow Korean companies to operate in the industrial zone. Director for mining and energy infrastructure at the Office of the Coordinating Maritime Affairs Minister, Yohannes Yudi Prabangkara, said the project “would create a new economic growth center outside of Java.” (bbn)