Indonesian Investment Coordinating Board Chief Bahlil Lahadalia revealed the government's plan to offer a US$70 billion downstream industrial project in the Bintuni Bay of West Papua to China and South Korea - Photo by TheInsiderStories.

JAKARTA (TheInsiderStories) – Indonesian Investment Coordinating Board Chief Bahlil Lahadalia revealed the government’s plan to offer a US$70 billion downstream industrial project in the Bintuni Bay of West Papua to China and South Korea. Projects outside Java were in line with the mission for equitable development throughout the archipelago launched by President Joko Widodo.

“Bintuni Bay industrial zones have the natural resources potential to support the petrochemical industry. Moreover, the development of the methanol industry and its derivatives, then ammonia and its derivatives are one of the strategic industries,” Lahadalia said at the Papua Development Conference in Jakarta on Tuesday (12/17).

According to Lahadalia, the petrochemical industrial zones is expected to attract an investment of $70 billion for the zones development, as well as an 800-kilo ton per anum methanol plant for 20 years. The plant construction is expected to utilize 20 hectares of area​​.

“Considering the development of zones has been going on for five years, now is the right time to step into the development stage of the region,” he said before Papua’s officials.

Lahadalia assessed that industrial zones plays a strategic role in increasing efficiency and facilitating infrastructure provision. The zones development is expected to provide a multiplier effect with the entry of a lot of investment and increasing employment. The area is targeted to absorb 3,500 workers.

Lahadalia went on by saying he had up a master plan for industrial development in the zones, including standards for controlling environmental impacts, so the industries would not immediately reduce the environment quality.

Petrus Kasihiw, Bintuni’s regent adding the local government had helped in the long-term planning in preparing the acceleration of the industrial zones program. According to him, the regional and central governments have signed an agreement to allocate the first 50 hectares of land needed from the total needs of 200 hectares of the zones.

Earlier this month, Lahadalia had brought a number of Papuan officials to China. He led a delegation to visit Shanghai, the industrial and manufacturing city of Wenzhou, and Tongxiang in Zhejiang Province. The group met with investors, domestic factories and local governments in Wenzhou City, Zhejiang Province.

The delegation also held face-to-face meetings with the founders and top management of Huafon Group and Tsingshan and the Mayor of Wenzhou. They also visited the Shan Du Hydropower plant, owned by the Tsingtao Group as well as the STS Compex research, its units.

Written by Lexy Nantu, Email: lexy@theinsiderstories.com