A large group of South Korean companies is reportedly set to finance the construction of a number of large industrial zone complexes in Indonesia. The consortium announced that it is prepared to invest around US$6.5 billion to build different structures, which will include an international seaport and a coal-fired steam power plant, to be located in North Kalimantan, Indonesia.
The group, led by PT Dragon Land, revealed that it already has laid out a plan to develop a 5,664-hectare area in Kalimantan. The entire area will house different types of structure, with some area being allocated for mineral processing. According to the chairman of PT Dragon Land, Lim Yong, the entire project has the full support of the South Korean government.
Korea's director for port investment cooperation at the Korean Ministry of Oceans and Fisheries, Chang Ki-Wook, revealed that the Korean government has granted Indonesia US$600,000 to conduct a feasibility study on the area. Chang explained that the money should allow the consortium to operate in the industrial zone and to complete all necessary requirements for the project to push through.
Earlier in the week, representatives from both the consortium and the Indonesian government conducted a kick-off meeting for the project. During the event, government officials and company representatives discussed the upcoming feasibility study of the area. According to local reports, six firms from around Asia, Europe, and Australia have expressed their interest to partner with the consortium and the Indonesian government as investors in the project.
The entire project however still needs to go through a lot of processes before it can begin. According to PT Dragon Land, they have already acquired all of the necessary permits for the plans, but they still need to finish the feasibility study before they can proceed. The company also needs to submit a fully completed environmental impact analysis to ensure that they are complying with local environmental regulations.
The company also revealed that it will likely take three to four years to fully build the new Tanah Kuning-Mangkupadi international seaport. However, the company is confident that it can finish the necessary infrastructure for the area's industrial zone in less than a year. According to the director for mining and energy infrastructure in Indonesia, Yohannes Yudi Prabangkara, the project itself will be of great help to ensure economic growth in the country. He added that the area will be a new hub for various businesses outside of Java.
