A tripartite partnership of Malaysian, Chinese and Indonesian companies is developing one of world’s biggest integrated industrial estate in South Sulawesi.
The companies, Ipoh-based BTN Power (M) Bhd; China state-owned enterprise – China Machinery Engineering Corporation (CMEC); and Indonesia government linked entity – Perusda Bantaeng, have been awarded as “Joint Master Developer” of 3000 hectares of land in Bantaeng, about 130km south-east of the capital – Makassar.
“We are proud to announce that our BTN-CMEC joint venture has won the confidence of the local government of Bantaeng in South Sulawesi to develop the integrated industrial park,” announced BTN Power’s group managing director, Datuk Nizaruddin Mohamed, at a press conference in Ipoh recently.
“Hardly two months after all the agreements pertaining to the project were signed in Ipoh in late August, we have launched the ground-breaking ceremony for a power plant at the site.”
He stressed that it shows the BTN-CMEC joint-venture is enthusiastic and determined to carry on with the development. It would not be a “fly by night” scam. It also shows that a local company has successfully penetrated the investment-development sector abroad.
The integrated industrial park will be supported by all necessary infrastructure. Its Gross Development Value (GDV) will reach RM30 billion upon completion in 15 years.
The BTN-CMEC is the major shareholder of the project with the backup for project financing for the nickel and iron smelting on EPC basis if required. The group will invite Bumiputera contractors from Malaysia to participate in the infrastructure works at the integrated industrial park.
Since its inception, the industrial park has attracted and secured eight committed catalytic industrial manufacturers, primarily nickel pig iron smelters and its related services from China and Indonesia for land totaling 750 hectares with a total investment of RM9 billion and a workforce of 50,000.
The 2×300-megawatt power plant, costing RM4.5 billion, is scheduled to be completed in 2017. It will increase electricity supply in the region, which is already experiencing a shortage. Its construction is being undertaken by CMEC. Bantaeng Sigma Energy, a subsidiary of BTN Power, has acquired a total of 50 hectares of land from the landowners and the Bantaeng local authority in the coastal area for the project.
The project will undoubtedly boost socio-economic development in the region, where the majority of the residents are farmers, cattle breeders and fishermen. A township with all the infrastructures and facilities will be built nearby to accommodate the increasing population. Also a jetty to enable supplies to be imported and exported by sea will be constructed.
BTN-CMEC together with an Indonesian partner are also planning to develop a major tourism project, Royal Tallo Riverfront City Resort, in Makassar with a Gross development of RM45 billion over a 20-year period. It is aimed at attracting visitors from Middle East, Europe, China, Korea, Japan and Asean countries seeking an ecological and nature oriented option to Bali and Phuket.