Jakarta. Senior minister Luhut Binsar Pandjaitan recently revealed the possibility of China working with other countries -- namely Saudi Arabia and the United Arab Emirates (UAE) -- for its projects in North Kalimantan, which is popular among Beijing’s investors.

China has shown huge interest in investing in North Kalimantan, including a plan to build a photovoltaic (PV) glass production plant. Last week, Luhut met with Chinese top diplomat Wang Yi for some high-level bilateral talks in Labuan Bajo. China’s upcoming investments in North Kalimantan came up in the discussions, with Beijing offering to partner with other countries.

“Regarding North Kalimantan, they [China] asked us if they could invite a third country [into the partnership]. And I said ‘That would be great’,” Luhut revealed in a recent Instagram post.

The minister claimed that he had earlier spoken with Saudi’s Crown Prince Mohammed bin Salman Al-Saud about investing in North Kalimantan. Riyadh had said yes to the proposal, according to Luhut. “Then Wang Yi told me that ‘if Saudi Arabia and Abu Dhabi want to [work together], why not?'," Luhut added.

Interested Saudi and Emirati investors can join in via the Indonesia Investment Authority (INA), the country’s sovereign wealth fund. Luhut is planning to approach the said two Middle Eastern countries soon to discuss the potential cooperation.

“This is a major project. This consortium can become a new superpower involving developing countries,” Luhut said.

Luhut previously revealed that Beijing would invest $4 billion in a PV glass project in North Kalimantan. China is planning to invest in a petrochemical plant in the province, although Luhut has not revealed the names of the interested investors. However, Reuters reported last year that polyester fiber producers Tongkun Group and Xingfeming Group were seeking China’s nod to build a refinery and petrochemical complex worth $10 billion in North Kalimantan.

China was Indonesia's second-largest source of foreign direct investment (FDI) last year. Chinese FDI amounted to $7.4 billion throughout the year. Government data shows Saudi investments in Indonesia amounted to $7.1 million in 2023, while Emirati investors invested approximately $68.9 million.

North Kalimantan has what President Joko “Jokowi” Widodo claims to be the “world’s largest green industrial park”. Jokowi said last year that the 13,000-hectare Kalimantan Industrial Park Indonesia (KIPI) would produce electric vehicle (EV) batteries, and petrochemicals, among others.

Add as a preferred source on Google +