At the 2025 RCEP Forum held on June 4, 2025, in Huangshan, Anhui, China, a significant step was taken to strengthen economic cooperation within the Asia region. PT Kawasan Industri Jorong (KIJ) officially signed a contract with East China Engineering Science and Technology Co., Ltd. (ECEC) for the development of a coal gasification-based chemical industry facility in Indonesia.
RCEP is one of the world’s largest free trade agreements, involving 15 countries across the Asia-Pacific region, including ASEAN, China, Japan, South Korea, Australia, and New Zealand. Covering approximately 30% of global GDP and nearly one-third of the world’s population, RCEP is expected to promote regional economic integration, strengthen regional supply chains, and create greater cross-border investment opportunities. For China, RCEP serves as a strategic platform to expand its industrial role in manufacturing, energy, and technology sectors through collaboration with Southeast Asian partner countries.
The development focus of KIJ Industrial Estate is directed towards establishing a modern coal-based chemical industry, utilizing Indonesia’s coal resources through advanced coal chemical engineering technologies. One of the key strategic projects being developed is the construction of an ammonia plant, urea fertilizer plant, and green methanol facility based on coal. These facilities will be built within the Jorong Industrial Estate in South Kalimantan.
The first phase of investment for this project amounts to approximately USD 478 million, with an initial production capacity of 300,000 tons of ammonia and 520,000 tons of urea per year. In addition to producing fertilizers to support national food security, the project also aims to produce green methanol to support energy transition efforts and the development of environmentally friendly chemical industries. This initiative is aligned with the national vision Astacita to achieve food and energy self-sufficiency.
The contract for this project was signed by Mr. Wishnu Soehardjo, President Director of PT KIJ, and Mr. Li Lixin, President Director of ECEC. In his statement, Mr. Wishnu emphasized that this collaboration represents an important milestone in realizing PT KIJ’s vision as a world-class industrial estate that delivers long-term economic impact for Indonesia.
Environmental concerns are given special attention in the development of this project. PT KIJ plans to allocate a dedicated zone for chemical industries to minimize environmental impacts. The selected site is located in a non-residential area, and the carbon generated will be captured and processed into green methanol.
Construction of the plant is scheduled to commence in February 2026, upon the full completion of contract requirements and permitting processes. The project is expected not only to increase the added value of Indonesia’s coal commodities but also to create local employment opportunities, strengthen regional infrastructure, and support the economic growth of South Kalimantan.
