Ministry of Industry: KIK Tanah Kuning becomes diamond in 16 Recommendations of new Industrial Zones

INDUSTRY.co.id - Jakarta, Director General of Industrial Area Development (PPI) of the Ministry of Industry, Imam Haryono said it has issued 16 recommendations of new industrial zones with a total area of ​​8,510 hectares

"The recommendation of industrial estate is spread in West Java, East Java, Banten, West Kalimantan, North Sumatera, Jambi and Gorontalo provinces," said Imam at the exposure of industrial development along with Industry Journalists' Forum at Kemenperin Jakarta office (18/7/2017).

Of the 16 industrial areas, seven of which are the island of Java namely Karawang, Bekasi, Majalengka, Tangerang and Sidoarjo. While in Kalimantan, the recommendation of industrial estate is in Ketapang and Penajam Paser Utara.

Imam added that in the period 2014 to 2016, there is an increase of industrial estates from the number and widespread. Of 74 industrial estates in 2014 increased to 87 areas in 2016. Meanwhile, from the broad side of the increase reached 64.67 percent. Outside Java, the area extends from 28.01 percent to 42.42 percent in 2016.

On the other hand, Imam continued, to encourage the growth of industrial estates outside Java, the government plans to build a number of Special Industrial Zones (KIK). In the plan that included one of the National Strategic Project (PSN), the government will develop KIK in Tanah Kuning, North Kalimantan Province.

KIK Tanah Kuning has become one of the new industrial areas listed in the National Strategic Projects according to Presidential Regulation No. 58 of 2017. With an estimated investment of USD 28 billion, the government directs KIK Tanah Kuning as an integrated industrial center in North Kalimantan.

"For the development of KIK, the government offers 11,000 hectares of land for upstream and downstream industrial development, in which the KIK Tanah Kuning will be divided into 60 percent industrial park and 40 percent other infrastructure development such as tourism and housing areas," Imam said.

According to him this project is really new and in the stage of gradual land acquisition. He mentioned, now the land acquisition in Tanah Kuning only about 400 ha for one of the mining companies namely PT Delma Mining Corporation. PT Inalum (Persero) is also proposing a permit location of 500 Ha. "Currently, the condition is still greenfield, land acquisition is still small," he said.

The Chinese investor, Tsing San Group, also confirmed that it would invest to build a number of mining industries from upstream to downstream in KIK Tanah Kuning. Tsing San Group will build an upstream mining industry integrated with smelter development.

This bamboo curtain country investor will also build a 7,200 MW hydro power plant. In the near future, Tsing San Group will soon take care of the licensing process. "Yesterday Tsing San Group expressed its ability to develop in an integrated manner," added Imam.

Kemperin will continue to offer KIK Tanah Kuning to several investors. But according to Imam, another investor's response is still the stage of consideration. "We are working on all measures to attract long-term investment," said Imam.