A non-public consortium led by a South Korean company announced it would invest an estimated $6.5 billion in a brand new industrial zone, seaport and coal-fired power plant in Indonesia’s North Kalimantan province.
The investment will likely be built on a 5,664-hectare site throughout the Tanah Kuning-Mangkupadi international port and industrial zone, currently under construction.
Dragon Land chairman Lim Yong said the project has the support of the South Korean government, which has agreed to grant the Indonesian government $600,000 for a feasibility study on the project.
“Six firms have expressed interest as investment partners [in the project]”said Yong in an exclusive interview with Jakarta Post Office following a kick-off meeting between the corporate and officials from each countries.
“They come from South Korea, Japan, Australia and also Europe.”
In an earlier interview with The Jakarta Post OfficeA spokeswoman for PT Dragon Land said the ability plant could be ready in lower than three years after completing a feasibility study and environmental impact study, while construction of the seaport is predicted to take barely longer.
“In the meantime, we will try to complete the entire infrastructure of the industrial zone within the year,” she was quoted as saying.
Choi Jong-oh, CEO of consortium leader PT Dragon Land said: South China Morning Mail “The new industrial zone will provide South Korean and other companies with an opportunity to develop [in] North Kalimantan, which Indonesia is trying to transform into a key economic center.”
It is estimated that over 2,000 South Korean firms operate in Indonesia, and the 2 countries aim to extend bilateral trade to $30 billion by 2022. Reuters Agency he quoted Indonesian President Joko Widodo as saying in September.
