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Indonesia
AsiaSoutheast Asia

Consortium led by South Korean company to build US$6.5 billion industrial zone in Indonesia

  • The project, which includes a seaport and power plant, will be built on 5,664 hectares of land in the country’s North Kalimantan province

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The seaport is expected to handle vast amounts of coal and other natural resources. Photo: Reuters
Park Chan-kyong
A private consortium led by a South Korean company has announced that it will invest an estimated US$6.5 billion in a new industrial zone, seaport and coal-fired power plant in Indonesia’s North Kalimantan province.

The project will be built on 5,664 hectares of land at the Tanah Kuning-Mangkupadi international port and industrial zone, which is currently under construction.

Choi Jong-oh, CEO of consortium leader PT Dragon Land, said the exact amount to be invested will only be fixed once a feasibility study, bankrolled by the South Korean government, has been completed in about a year’s time.

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Jo Sol, from South Korea’s Ministry of Oceans and Fisheries, confirmed that Seoul had agreed to grant Jakarta US$600,000 for the study.

The seaport alone is expected to cost US$700 million to construct, according to Choi, and will be equipped to handle a sizeable chunk of the vast quantities of coal and other natural resources that are extracted each year from Kalimantan, which comprises the Indonesian portion of the island of Borneo.

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An employee of an Indonesian coal mining company checks a conveyor belt. Photo: EPA
An employee of an Indonesian coal mining company checks a conveyor belt. Photo: EPA
Choi said that companies from as far afield as Japan, Australia and Europe had expressed interest in joining the project, with South Korean firms “especially interested in building the port and power plant”.
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