Remarks of President of the Republic of Indonesia on Groundbreaking of Indonesia Green Industrial Area, Bulungan Regency, North Kalimantan Province, 21 December 2021

Bismillahirrahmanirrahim,

Assalamu’alaikum warahmatullahi wabarakatuh,
Good morning, may prosperity be upon us all,
Om swastiastu,
Namo buddhaya,
Greetings of virtue.

Distinguished Coordinating Minister for Maritime Affairs and Investment and ministers in attendance,

Distinguished Governor of North Kalimantan Province and Regent of Bulungan, as well as Deputy Governor;

Distinguished CEOs, company owners, investors in attendance,

Ladies and Gentlemen,

This is what I often reiterate – that we will begin the transformation of Indonesia’s economy. For so many years, we have been relying on natural resources, exporting raw materials. Now we will explore the downstreaming industry to industrialize our raw materials.

We will no longer export raw materials. We will export semi-finished goods or finished goods. Almost all of the industries in this area will produce finished goods so that they can provide great added value for the country since we sell it in the form of finished-goods.

This is a leapfrog – a leap that we have always wanted to make.  We will see the real benefits in 5-10 years from now. We will enjoy the benefits in the next 5-10 years.

I order ministers, governors and regents to prepare human capital to support this industrial area as this requires human capital with good qualifications. Do prepare it from now.

During the construction phase, it will create employment opportunities for approximately 100,000 workers. Once it is in operation, it will require 60,000 workers and even more than 200,000 workers in total including workers needed by the derivative industries from the products that are produced.

I am delighted that the industrial area will use the latest technology. It will produce sodium ions, lithium ions, semiconductors, and petrochemicals for textiles or other products. Other products coming from this industrial area include green aluminum, solar panels, and industrial silicone. All of them will be produced in this area.

This is a massive cooperation between Indonesia, local investors, Chinese investors as well as investors from the United Arab Emirates. I hope this area will be the world’s largest green industrial estate, not only in North Kalimantan or in Indonesia, but in the world. It covers an area of 16,400 hectares from the target of 30,000 hectares.

I strolled around this area two years ago by plane. I saw the condition and situation around here.

I also ordered provincial chief police, regional chief police, regional military head and other relevant ranks to oversee the development of the industrial area so that it can be conducive and safe for investors. Do not let any issue arise.

Related licensing, do oversee and accelerate the licensing process. This is to show the investors that we are serious to develop this area. Do not let any licensing process be hampered.

I have told Coordinating Minister for Maritime Affairs and Investment to oversee the licensing process. Let me know if there is something urgent to be finished but still be hampered because this is a leap in Indonesia’s economic transformation and it starts from here so that we can manage our natural resources from upstream to downstream.

And most importantly, huge job creation. It will also provide income to the state in the form of tax or non-tax so that it will improve our current account balance, improve our export trade balance that we have not been able to complete for years, and of course a lot of foreign exchange will enter our country.

That concludes my remarks on this auspicious occasion.

Once again, I’d like to appreciate what has been started in Tanah Kuning, Bulungan regency, North Kalimantan province. Let me also extend my appreciation for the initiative of the investors, the owners of capital, and the CEOs who have come and built industries here. We hope we can see the results in the near future.

By saying bismillahirrahmanirrahim, I hereby declare the groundbreaking of the Indonesian Green Industrial Area in Bulungan regency, North Kalimantan province, Indonesia begin.

I thank you.
Wassalamu’alaikum warahmatullahi wabarakatuh.

(EST/EP)