East Kalimantan’s industrial zones to be Indonesia’s next big thing

SAMARINDA, Indonesia, Nov. 20, 2019 /PRNewswire/ — Island of Kalimantan has officially been set as one of six economic powerhouses in Indonesia by the government of Republic of Indonesia. East Kalimantan province, more precisely, is becoming Indonesia’s next big thing, not only in terms that it has recently been named as the country’s city capital relocation destination, but also that it is home to a number of emerging industrial estates – Kariangau Industrial Zone (KIZ) and Special Economic Zone Maloy Batuta Trans Kalimantan (MBTK).

Located in Balikpapan, East Kalimantan, the 2.189-ha KIZ has been known as one of the province’s leading economic hubs, particularly for the processing industry that accommodates many kinds of commodities such as coal, oil and gas, methanol, agribusiness products, to name a few. Connected directly to Sepinggan Airport and Kariangau power plants makes it one of the most potential investment destinations in Indonesia.

MBTK is the first crude palm oil (CPO) port in Indonesia with daily handling capacity up to 2.000 tons. Established on 557.34 ha area, the Zone is strategically situated in Indonesian Archipelago Sea Channel (ALKI), the international trading route connecting Kalimantan and Sulawesi islands. The provincial government eyes to attract foreign direct investment of Rp.34,3 trillion.

Riawati, Spokesperson of The Investment Center of East Kalimantan, said that the central government puts a great emphasis on the growth of East Kalimantan, making it as one of the most foreign investment-ready provinces in Indonesia.

“Everything is well prepared, all of the would-be industry areas have already been clean and clear,” said Riawati.

She continued, in order to attract investments, the provincial government offers a number of facilities and incentives, including tax holidays, exclusion from restrictions under the Negative Investment List, land and building tax reductions, and import facilities, to name a few.

“We hope, through this policy, East Kalimantan will be the next economic hub in Indonesia in future,” she stated.

Human Capital Availability and Readiness

In order to keep up with the industry growth, the provincial government of East Kalimantan has actively been developing the availability and readiness of the human resources, ensuring that the local workers will be optimally employed by the ever-increasing province’s industry.

Abu Helmi, the caretaker of Head of Manpower and Transmigration Office of East Kalimantan conveyed that to fully support the growing industry, the provincial government provides comprehensive training at our training facility, the Job Training Center (BLK) in Samarinda and also encourages the local enterprises to open apprenticeship programs.

“These programs are expected to be able to help build local workers’ readiness and competitiveness,” he expounded.

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