Indonesian Political, Business & Finance News

East Kalimantan Prepares 12 Ready-to-Offer Projects, Aiming for Rp90 Trillion Annual Investment

| | Source: KALIMANTAN.BISNIS.COM Translated from Indonesian | Investment
East Kalimantan Prepares 12 Ready-to-Offer Projects, Aiming for Rp90 Trillion Annual Investment
Image: KALIMANTAN.BISNIS.COM

The East Kalimantan Provincial Government is preparing 1ability 2 investment projects ready to be offered, known as Investment Project Ready to Offer (IPRO), through the Regional Investor Relations Unit (RIRU).

This move is aimed at increasing investment certainty and pursuing a target for realised capital investment of approximately Rp90 trillion per year. The Deputy Governor of East Kalimantan, Seno Aji, stated that strengthening the RIRU is essential so that potential investors can obtain comprehensive project information from the early stages, including investment value, location, land status, licensing, supporting infrastructure, and labour availability.

“Through the RIRU, we are creating IPROs, and currently, there are 12 projects ready to be offered. Moving forward, these projects will continue to be reviewed to ensure information is complete from upstream to downstream,” said Seno Aji following the RIRU East Kalimantan High-Level Meeting in Samarinda on Tuesday.

He noted that presenting more comprehensive project data serves as an instrument to reduce the uncertainties frequently faced by investors. The provincial government will also prepare licensing aspects, site readiness, land status, infrastructure support, and human resource requirements as part of the investment information package.

Seno assessed that preparing IPROs is vital because investors consider not only the potential economic scale of a project but also the certainty of investment execution on the ground. “The hope is that when investors read these IPROs, they will already know the required investment value, project location, labour availability, and other essential details,”

The East Kalimantan Provincial Government has designated the Maloy Batuta Trans Kalimantan Special Economic Zone (KEK MBTK) in East Kutai as the top priority in its investment attraction agenda. This zone is projected to become a hub for palm oil processing, energy, and logistics in East Kalimantan.

In addition to KEK MBantum, the local government is also focusing investment promotion on the Kariangau Industrial Estate in Balikpapan, industrial zones in Bontang, and downstream projects for regional commodities. Historically, KEK MBTK was established to develop palm oil processing, energy, and logistics. The 557.34-hectare area was previously projected to attract Rp37.71 trillion in investment and absorb up to 55,700 workers. However, actual investment realisation remains dependent on land readiness, infrastructure, utilities, and business certainty.

The Kariangau Industrial Estate in Balikpapan is being developed in integration with the Buluminung Industrial Estate in North Penajam Paser. Both are part of strategic provincial zones around Balikpapan Bay, with a total development area reaching 2,721 hectares.

One project viewed as strengthening East Kalimantan’s downstreaming narrative is the construction of a coal gasification plant to produce methanol at the Batuta Chemical Industrial Park (BCIP) in the Bengalon District, East Kutai. This National Strategic Project (PSN) reached the groundbreaking stage on 31 August 2026. The facility, developed by PT Bumi Etam Chemical, aims to produce approximately 2 million tonnes of methanol per year, requiring about 7.70 to 7.78 million tonnes of low-calorific coal annually.

The Ministry of Energy and Mineral Resources noted that this project has the potential to reduce dependence on methanol imports. In 2025, Indonesia still imported approximately 1.3 million tonnes of methanol with a value of Rp7.1 trillion. Production from the Bengalon project will be directed towards the petrochemical industry, formaldehyde, and the development of biofuels such as FAME and the B50 programme.

“In addition to CPO, there is the mining sector. The groundbreaking for the methanol plant in East Kutai has already taken place. This is also a priority,” Seno added.

During the RIRU High-Level Meeting, the East Kalimantan Provincial Government, along with district/city governments, signed a joint commitment to strengthen synergy in supporting the implementation of the East Kalimantan RIRU Roadmap 2026-2028. This roadmap includes three phases: preparation and planning in 2026, development and implementation in 2027, and monitoring and oversight of investment realisation in 2028.

The Head of the Bank Indonesia Representative Office for East Kalimantan, Jajang Hermawan, emphasised that macroeconomic stability, project feasibility, and business certainty are key factors in building investor confidence. Within this framework, the RIRU serves as a coordination platform between local government, Bank Indonesia, and project owners to prepare investment portfolios and follow up on potential investor interest.

The RIRU agenda will also be linked to the Mahakam Investment Forum (MIF) 2026, planned for October 2026, which aims to bring together regional project owners with both domestic and global potential investors.

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