Chinese project in Indonesia’s Kalimantan brings opportunities, controversy over growing clout

A black double-cabin, four-wheel-drive pickup truck stopped in front of a fresh fish store in Kampung Baru, Mangkupadi village, in North Kalimantan, and three Chinese nationals and one Indonesian exited the vehicle. They went inside and spent more than 30 minutes inspecting and selecting fish before leaving.

Kaesi, the store owner, could not hide her smile after they left. It was not only because the group had spent almost 500,000 rupiah (US$30.70) but also that other Chinese customers had entered her store afterwards and spent even more, leaving her with a tidy profit.

“They don’t seem to worry about money. They can spend around 500,000 to 1 million rupiah each time they shop here,” the 35-year-old woman told This Week in Asia.

They have brought with them new business opportunities but also controversy over their growing influence, with some locals complaining the project and its workers are being prioritised over their rights.

KIPI has also been designated as one of Indonesia’s National Strategic Projects, which are considered crucial to the country’s development and given special mechanisms and regulations to accelerate their construction. The project will eventually cover 30,000 hectares (74,130 acres) of land in Mangkupadi and Tanah Kuning village on the eastern coast of North Kalimantan.

Although official records about the companies involved with KIPI are difficult to find, the Nugal Institute, a think tank that has been collecting data about the project, said it could confirm two Chinese companies, Tsingshan Holding Group and Taikun Petrochemical, were involved with the industrial park, as well as two Chinese contractors, China State Construction Engineering Corporation and China Railway Engineering Consulting Group.

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