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Indonesia
This Week in AsiaEconomics

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

  • While influx of Chinese workers has helped improve lives for some Indonesians, activists warn of rights abuses in National Strategic Projects

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Construction at the site of Kalimantan Industrial Park Indonesia. Photo: Richaldo Hariandja
Richaldo Hariandja

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.

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Kaesi’s customers are a few of the many Chinese workers who have come to her corner of Indonesia in connection with the Kalimantan Industrial Park Indonesia (KIPI) project, which began construction in December 2021.

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.

Kaesi, a fish seller in Northern Kalimantan’s Mangkupadi village, says she has benefited from the influx of Chinese workers to the area. Photo: Richaldo Hariandja
Kaesi, a fish seller in Northern Kalimantan’s Mangkupadi village, says she has benefited from the influx of Chinese workers to the area. Photo: Richaldo Hariandja
The Indonesian government declared KIPI would be the “largest green industrial park in the world”, with President Joko Widodo calling it the future of the country’s green energy industry, powered by clean energy and producing EV battery, petrochemicals, and aluminium.
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