KIPI Maloy Infrastructure Integration

Sangatta, 15/5/14. The target of the East Kalimantan Provincial Government together with the Governor, DR.H. Awang Faroek Ishak in 2018 Industrial Area and Maloy International Port (KIPI) in East Kutai Regency can operate and export first Crude Palm Oil (CPO).

The development of integrated infrastructure and sub-infrastructure at KIPI Maloy is very much needed to support, especially in preparation for the first CPO export in 2018, one of which is the initial target of building six (6) storage tanks in 2015 through funding from the Central Government (APBN) which is incoming in the Master Plan for Acceleration, Expansion and Development of the Indonesian Economy (MP3EI) program.

This was revealed during a survey or field inspection at KIPI Maloy by the East Kalimantan Province Bappeda, the East Kalimantan Province Industry, Trade and Cooperatives Service, and the East Kalimantan Province Public Works Service represented by the contractor and the East Kalimantan Province Transportation Service .

Survey participants who came from the Bappeda of East Kalimantan Province included the Head of the Regional Infrastructure Sub-Sector, Achmad Mujakkir, ST and the Head of the Business Development, Tourism and Culture Sub-Sector, Berlin Franko Shaloho, SE; Head of Regional Development Financing Sub-Sector, Andi Arifuddin, S.Pi and Sukandar, S.Sos, Public Relations executive staff, Achmad Hafid, Economic Sector executive staff and East Kalimantan Province Bappeda staff.

The implementation of the survey at KIPI Maloy Bappeda of East Kalimantan Province together with the SKPD within the relevant East Kalimantan Provincial Government aims to ensure the integration of infrastructure and sub-infrastructure development at KIPI Maloy in order to ensure that each development target in the Maloy Industrial Area and International Port can be implemented well according to plan.

The Maloy International Industrial and Port Area (KIPI) in East Kutai Regency is prepared to become a processing center for CPO and its derivative products and an industrial center integrated with an international scale port.

Position of KIPI Maloy

KIPI Maloy is located on the Indonesian Archipelago Sea Route II (ALKI II), which is an international trade sea route and is located in the central area of ​​the future world economy (Pacific Rim), which is one of the advantages of KIPI Maloy.

Apart from that, the Maloy area is also included in the Kalimantan and Sulawesi interconnection route, which passes through the trans-Kalimantan regional route and the Tarakan-Toli Toli, Balikpapan-Mamuju ferry crossing (quoted from kaltimprov.go.id).

Legal Basis

The legal basis for the development and development of KIPI Maloy is Presidential Regulation No.32/2012 concerning the Master Plan for the Acceleration and Expansion of Indonesian Economic Development (MP3EI) for the Kalimantan Economic Corridor, as the Production and Processing Center for Mining Products and the National Energy Storage. Also strengthened by Presidential Instruction No.1/2012, which designated East Kalimantan as an Oleochemical-based Industrial Cluster in Maloy, East Kutai, as well as Regional Regulation No. 4 of 2009, Vision of East Kalimantan Bangkit 2013, realizing East Kalimantan as a Leading Agro-Industry and Energy Center towards a Just and Prosperous Society.

The designation of KIPI Maloy as one of a number of development projects in East Kalimantan included in the Kalimantan Economic Corridor MP3EI program is proof that the project is very strategic and therefore deserves support from the central government.

KIPI Maloy Development Planning Concept

KIPI Maloy has two development concepts, the first is to build an international scale oleochemical and mining product processing industrial cluster in order to increase added value, create jobs and business opportunities. Second, providing highly competitive industrial areas with the support of incentives and various conveniences.

The construction and development of KIPI Maloy is estimated to require a total investment of Rp. 4.771 trillion, with an area of ​​5,305 hectares. The first development phase covers an area of ​​1,000 hectares and the land that has been acquired covers an area of ​​577 hectares.

Infrastructure

Accelerating the development of KIPI Maloy is carried out by building supporting facilities and infrastructure including the oil industry, aluminum, stearin and PFAD smelting industry, fatty acid industry, biodiesel and cooking oil industry.

Meanwhile, the supporting areas include the port, 2x100 MW power plant, railway line and coal terminal. In the olechemical industry area, a CPO port was built with a capacity of over 100,000 DWT. On the land side, it is built on an area of ​​115.38 hectares with office facilities, workshops, fire house and 19 storage tanks with a capacity of 3,000 tonnes/unit each. Apart from that, the Provincial Government is also preparing supporting infrastructure in the form of the construction of a 17 kilometer Maloy port access road with an investment value of IDR 229 billion from SAL APBN funds for Fiscal Year 2011, progress has now reached 20%.

Furthermore, the road construction in the Maloy industrial area is 8.5 kilometers long, the investment value of IDR 95 billion comes from 2012 Provincial APBD funds, progress is 20%. Construction of offices and supporting facilities for the Maloy port, investment value of IDR 39 billion came from 2012 provincial APBD funds of IDR 7.6 billion and 2013 IDR 31.4 billion, progress of 11.8%. Then, construction of raw water supply facilities for KIPI Maloy with an investment value of IDR 200 billion.

In detail, Rp. 30 billion for the construction of the Kaliorang Dam came from the 2011-2012 provincial APBD. Survey, investigation and design (SID) work for Slangau Dam on a land area of ​​1,500 hectares, with a budget of IDR 2 billion from the 2012 provincial APBD. Model test work, certification of Kaliorang Dam, investment value of IDR 1.2 billion, comes from 2012 provincial APBD funds. As well as AMDAL Kaliorang Dam, investment value Rp. 600 million, coming from 2012 Provincial APBD funds.

Meanwhile, outside KIPI Maloy, the Provincial Government is also trying to improve road infrastructure to support the accelerated development of the area. A number of activities were carried out including handling/improving the Talisayan-Batu Lepok-Sangkulirang road and improving the Sp.Perdau-Maloy road.

Conducting/improving the 209 kilometer Talisayan-Batu Lepok-Sangkulirang road, with an investment value of IDR 575 billion originating from provincial APBD funds and three 2012-2013 multiyear packages (MYC), physical development progress has reached 6% starting in early September 2012.

Improvement of Sp. Perdau-Maloy is 30 kilometers long, with an investment value of IDR 164 billion coming from APBN funds which are divided into two packages. One FY 2012 package is worth IDR 8.9 billion and two 2012-2014 MYC packages are worth IDR 155 billion. Physical development progress has reached 86.5%.

Apart from road construction, to support land transportation facilities to KIPI Maloy, the construction of the 150 kilometer Muara Wahau-Lubuk Tutung railway is also being carried out in collaboration between the Provincial Government and Ras Al-Khaimah Minerals and Metal Investment, United Arab Emirates (UAE) with total investment of US$ 900 million. Furthermore, the construction of the 185 kilometer Tabang-Lubuk Tutung railway was built by PT Gunung Bayan with a total investment value of US$ 1 billion.

Maloy Trans Kalimantan Economic Zone (MTKEZ)

In its development, KIPI Maloy was proposed by the East Kalimantan Provincial Government to become a Special Economic Zone (KEK) Maloy Trans Kalimantan Economic Zone (MTKEZ) with an area of ​​32,800 hectares. MTKEZ is one of the development loci in the Kalimantan Economic Corridor which will be part of the national connectivity posture to maximize growth.

MTKEZ is an integration between KIPI Maloy covering an area of ​​5,305 hectares, the Trans Kalimantan Economic Zone Mineral Industrial Area (TKEZ) covering an area of ​​26,500 hectares and the Batuta Coal Industrial Port (BCIP) Chemical Industrial Area covering an area of ​​1,000 hectares. The location chosen was in East Kutai, namely in Sangkulirang, Kaliorang and Bengalon (Lubuk Tutung) Districts, East Kutai Regency.

The construction of the MTKEZ, whose industrial zone includes basic oleochemical, food and non-food based industries, is being carried out to spur economic development in the eastern and northern regions of East Kalimantan, so that there is equitable development which leads to an increase in the welfare of the surrounding community.

This is in accordance with the East Kalimantan Provincial Government's grand economic development strategy which aims at equitable and sustainable development by developing existing industries (petroleum, fertilizer, gas, crude palm oil (CPO) and coal) and building agriculture-based industries with an economic scale approach and cluster.

"The provincial government is currently trying to make MTKEZ one of the Special Economic Zones (KEK) by maintaining and increasing investment competitiveness which is supported by abundant natural resource wealth, geographical position on ALKI II, conducive security conditions, government commitment in "facilitate investment and the availability of adequate human resources," said East Kalimantan Governor Dr H Awang Faroek Ishak (quoted from the website www.kaltimprov.go.id)

MTKEZ is also supported by other industrial areas spread across the Balikpapan (Kariangau Industrial Area), Samarinda (Trade and Services Industrial Area), Bontang (Oil, Gas and Condensate Industrial Area), Berau (Tourism Industrial Area), Bulungan ( Delta Kayan Food Estate) and Malinau (Kayan Mentarang Forest Area). (source: website www.kaltimprov.go.id and republished by Public Relations of Bappeda East Kalimantan Province/Sukandar, S.Sos).