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FOREIGN DIRECT INVESTMENT

Chinese investors invited to develop N. Kalimantan

Friday, 10 March 2017 | Sanny Cicilia

JAKARTA. The Indonesian government has invited investors, including those from China, to develop industrial estates in North Kalimantan, a province with great energy potential.

It has at least nine oil and gas fields, including one called the Ambalat block that has oil and gas reserves mounting to 764 million barrels and 1.4 trillion cubic feet, respectively, and hydroelectricity potential estimated at 33,000 megawatts (MW).

Industry Ministry Airlangga Hartarto stressed the importance of attracting investors to develop and optimize North Kalimantan’s potential as the development will cost a large amount of money.

“Some of the prospective investors are from China. Today, we have a trade deficit mounting to US$15 billion; it is possible that the figure will be compensated through investments in the province,” Airlangga said in Jakarta.

Airlangga said North Kalimantan was located at a strategic position as 60.93 percent of Indonesia’s trade was done with fellow Asian countries, including China, that were located closer to the northern side of the archipelago.

“So we can prepare export-based industries in North Kalimantan with targeted markets, such as China, Japan, Taiwan and Hong Kong,” Airlangga said.

At present, the North Kalimantan administration claims there are several investors that have committed to develop hydro power plants in the province, including PT Hannergi Power Indonesia and PT Kalimantan Electric City at Mentarang River with a capacity of 500 MW and 7,600 MW, respectively, and PT Kayan Hidro Energi at Kayan River with a capacity of 9,000 MW. (bbn)

Source : The Jakarta Post

Reporter: Sanny Cicilia
Editor: Sanny Cicilia