Jakarta. South Korean conglomerate LX International has pledged to invest Rp 1.2 trillion ($71.6 million) in the Maloy Kaliorang transmigration area in Kutai Timur, East Kalimantan, a move the government says will directly benefit local communities.

Transmigration Minister Iftitah said the investment reflects growing global interest in Indonesia’s regional development zones, particularly those rich in natural resources such as palm oil and coal. “From the 3,800 workers currently employed in Maloy Kaliorang, 80 percent are local residents. This is exactly what we want, making people the priority,” Iftitah said on Tuesday.

In addition to LX International’s investment, a Malaysian investor plans to build an airport in Maloy Kaliorang under a build-operate-transfer (BOT) scheme. The project will utilize 75 hectares of transmigration land for a runway that will eventually be handed over to the state.

To attract more investors, Iftitah underscored the need for policy certainty and trust. “We need investors, but we cannot leave our people behind. Businesses must embrace local workers to improve their welfare,” he said.

As part of its follow-up, the ministry is preparing a Project Facilitation Office (PFO) to assist investors in coordinating with other government agencies, including the Investment Ministry, Energy and Mineral Resources Ministry, Forestry Ministry, Trade Ministry, and Foreign Affairs Ministry. “As the regulator, we will serve as a bridge between businesses and communities. Following the President’s direction, we need investment to drive the economy, but Indonesian people must not be sidelined,” Iftitah added.

 Nationwide, the country recorded Rp 942.9 trillion ($57.38 billion) in investment realization during the first half of 2025, according to the Investment Ministry. Domestic investment outpaced foreign direct investment (FDI), while investment outside Java reached Rp 476 trillion, slightly higher than Java’s Rp 466.9 trillion, showing continued momentum in regional growth.

LX International is a South Korean multinational conglomerate with businesses spanning mining, energy, and agribusiness.

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