VIVAnews - The Capital Investment Coordinating Agency (BKPM) confirmed the news that Ras Alkhaimah, an investor from Middle East, has invested US$5.2 billion in East Kutai, East Kalimantan.
"This is the achievement of BKPM in making possible instant investment of 1.5 months. The project will be started in early 2012 while the development will be completed in 2011," said BKPM Chief Gita Irawan Wirjawan on Wednesday, Jan 6.
The investor has readied several infrastructures such as the 139 km-long railroad having 100-meter width of corridor worth US$1.2 billion which will be ready in two years.
"Parallel with the railroad, they will construct port, and smelter as well as power plants. The project will be realized in the next three to four years," said Gita.
Gita further mentioned that the production capacity includes a 1400 MW power plant worth US$1.5 billion of investment; aluminium smelter having the capacity of 500,000 tons per year worth US$2 billion of investment; coal mining with the capacity of 1 million tons in 2010, 17 millions tons in 2014, and 35 millions tons in 2017.
"The Credit suppliers are from Middle East and India," he said.
Chairperson of the Indonesian Young Entrepreneurs Erwin Aksa said the investment indeed leads to solid investment. However, should the coal products be sold abroad, it would not add values to the domestic economy.
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Translated by: Bonardo Maulana Wahono
