Thursday, 23 May 2019 | 13:40 WIB

Luhut: Govt Promotes Development of Morowali Industrial Park

Coordinating Minister for Maritime Affairs Luhut Pandjaitan

MOROWALI, NNC - Coordinating Minister for Maritime Affairs Luhut Pandjaitan during a visit to the IMIP (Indonesia Morowali Industrial Park) area on Thursday (1/10/2019) held a dinner meeting with investors/potential investors from China who participated in developing this industrial area.

In front of the attendees, Mr. Luhut said that the government strongly encouraged efforts to develop this industrial area but there are conditions that should not be ignored.

"The government will help so that this can be developed into a special economic zone but with conditions, you have to partner with a local partner. This is not negotiable. Surely the cooperation must benefit both parties," he said firmly.

He expressed the government's desire to bring the upstream industry closer to one region so that imports could be reduced. "Now in this region the products being made have reached carbon steel. We hope that other derivative products will be produced later. Likewise with batteries, from upstream industries to end products can eventually be done here," he said.

Mr. Luhut suggested the resulting battery products should be focused on batteries for motorbikes, then batteries for public vehicles after that, batteries for private vehicles.

Collaboration with local partners is not only in the industry, according to Coordinating Minister Luhut Tsinghua University of Beijing has expressed their desire to establish a research center in Morowali and of course will cooperate with universities in Indonesia such as Bandung Institute of Technology (ITB) or other universities.

On this occasion also present was Budi Sadikin, the President Director of PT Inalum, a company which according to Mr. Luhut could become a local partner of investors, Maniwanen, CEO of Busana Aparel Group representing the private sector and talking about the business prospects in Indonesia and reform activist Hariman Siregar.

Mr. Maniwanen said industries in Indonesia that need stainless steel during the period still import to meet their needs, so with the presence of stainless steel produced in the IMIP region, according to him, it will certainly be consumed by the domestic industry because it can save transportation costs even emerge new downstream industries. Mr. Maniwanen said the private sector is ready to work with this industrial area. This meeting was attended by Mr. Xiang Guangda, President Director of Tsingshan Group, Mr. Xu Kaihua, President Director of Gelinmei, Mr. Li Changdong, President Director of CATL, Mr. Chen Xuehua, Huayou, Director of BRUNP Recycling and Japanese company representative Mr. Hironari Furukawa, President of Hanwa.

They expressed their commitment to partnering with Indonesian companies, bringing the latest technology and maintaining and protecting the environment around from pollution.