FGD in the Context of an Initial Feasibility Study to Attract Foreign Investment in the Kariangau Industrial Area

Bappeda East Kalimantan Province facilitated Focus Group Discussion (FGD) activities and field work visits as part of a series of initial feasibility studies to attract foreign direct investment (FDI) in the Kariangau Industrial Area, Balikpapan. This activity aims to explore the potential of this industrial area to attract the attention of foreign investors in supporting economic growth as one of the industrial areas in East Kalimantan.

The Kariangau Industrial area has a number of advantages, including a strategic location close to the National Capital City (IKN) and very strategic access to goods distribution, both for domestic and international markets. Apart from that, this area has large natural resource potential that can be developed for natural resource-based industries (SDA) such as energy, manufacturing and processing. In particular, industries related to energy and renewable energy technology, which are expected to develop rapidly. This area is also considered ready to receive investment thanks to full support from the regional and central governments through various fiscal incentives.

The existing infrastructure in the Kariangau Industrial Area also continues to develop, including ports, toll roads and air transportation access, which makes it an ideal location for running sustainable and environmentally friendly industries. This area is very suitable for developing renewable energy industry, waste processing and environmentally friendly technology.

This FGD activity is part of the Indonesia Economic Innovation Partnership Program (EIPP), a collaboration between the Indonesian Government and the South Korean Government which has entered its fifth phase. In 2025, the theme will be "Development Strategy and Initial Feasibility Study to Attract Foreign Direct Investment (FDI) in the Kariangau Industrial Area, East Kalimantan."

Based on the results of the discussion, several recommendations for developing the Kariangau industrial area include the importance of developing modern and efficient port facilities, including container terminals and logistics warehouses, as well as an integrated transportation network that includes toll roads and railways to connect the Kariangau Industrial Area with IKN and other areas. The government is also advised to provide fiscal incentives, facilitate licensing, and propose that the Kariangau Industrial Area become a Special Economic Zone (KEK) to attract more investors.

Apart from that, there needs to be a skills training program that suits the needs of industry in the Kariangau Industrial Area. There is a need for collaboration with universities to develop research and technology as well as to increase the competitiveness of the local workforce. It is also recommended that the focus of industrial development in the Kariangau area be on priority industries based on regional regulation number 10 concerning the East Kalimantan Province Industrial Development Plan for 2019-2039, namely upstream agro industry, gas and coal-based chemical industry, food industry and maritime logistics. renewable to support IKN operations.

To ensure smooth development, it is recommended to form a special team that can oversee the Kariangau Industrial Area development project and attract foreign direct investment (FDI).

This activity is an important step to optimize the potential of the Kariangau Industrial Area as a new economic center in East Kalimantan. It is hoped that this area can make a significant contribution to regional economic growth, as well as supporting economic progress, especially in Eastern Indonesia.

(SA)