The Provincial Government of East Borneo is eyeing IDR30 trillion investment, particularly with the realization of development Borneo Train project by Russian Railways.
It’s far above last year’s target of IDR20 trillion, Head of Regional Coordination, Promotion, and Investment Agency (BKKPMD) for East Borneo Yadi Sabian Noor said.
Besides train project, there are also several strategic projects that is expected to attract many investment, i.e. toll road and Maloy Industrial Park.
“The investment evaluation toward Indonesia will also help to attract investor into East Borneo,” he told Bisnis yesterday.
The investment in East Borneo reached IDR28 trillion until the third week of December 2011 or exceeded IDR8 trillion from the target. Currently, the agency is still counting the total investment during 2011. “The investment realization may higher than IDR28 trillion but it has certainly exceeded the target,” he said.
The signing of memorandum of understanding (MoU) with Russian Railways in December 2011 was postponed as the Ministry of Finance wishes for another agenda in addition to the MoU signing.
“There are several recommendations for the content of MoU, including from Ministry of Transportation. The ministry suggested that other companies engaged in coal mining sector can participate in the train project.”
Russian Railways is targeting to complete the administration of investment completeness this year so that the physical construction can be executed next year. Thus, the railways that connected West Kutai and Balikpapan City will begin the operation in 2016.
“The train project will be supported by Balikpapan-Samarinda toll road that is still hampered with forest function problem. The discussion of Spatial Plan (RTRW) is expected to settle the problem.”
Such spatial plan discussion is expected to complete at the end of January so that the toll project can be started soon as it has provided business certainty to prospective investor. “South Korean investor is interested to invest IDR2.6 trillion in the toll project.”
More jobs
The provincial government also invites investor to participate in food estate and rice estate projects, which will absorb significant number of labor.
Head of Balikpapan Investment Board and Integrated Licensing Services Asranuddinsyah said that Bosowa Group has mentioned its investment plan to build cement packaging plant in Balikpapan.
“We are still waiting for the complete proposal about the investment value and project details from Bosowa,” he said.
Yadi claimed that he hasn’t yet received information related to Bosowa’s investment plans. However, the Makassar-based company once expressed its plan to participate in food estate and rice estate project.
http://en.bisnis.com/articles/east-borneo-eyes-idr30-trillion-investment
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