The BKPM Chairman Encourages the Buton Asphalt Industry to Surpress Imports

   

Following up on the President’s big vision regarding economic transformation, one of which is manifested in the optimization of natural resource processing, Chairman of the Indonesia Investment Coordinating Board (BKPM) Bahlil Lahadalia visited the asphalt factory location in Buton Regency, Southeast Sulawesi. (28/2)

In a press conference that took place at the PT Kartika Prima Abadi (KPA) asphalt plant, Bahlil explained that Indonesia’s total asphalt imports per year are around IDR 50 trillion. If
domestic production can reduce 50% of asphalt imports, it will save around IDR 20 trillion in foreign exchange, which is linear with the President’s program, namely optimizing Indonesia’s existing natural resources, especially Buton asphalt.

The BKPM Chairman directly submits the decision letter for granting investment incentive facilities in the form of a tax holiday to PT KPA with the hope that collaboration related to the company will be able to increase its production and involve local entrepreneurs. In the other hand, the Regent of Buton La Bakry is committed to securing and
facilitating investment in Buton. Not only asphalt, Buton also has nickel, manganese and Buton Industrial Park.

Buton has long been known for its natural resource potential, especially asphalt. However, the management has not run optimally. PT KPA uses asphalt purification technology with a production capacity of 100,000 tons per year. This is the best definition of
public-private support and cooperation. BKPM does not only look at investment from outside (PMA), but also from within (PMDN).

Investment realization in Southeast Sulawesi throughout 2020 reached IDR 21.13 trillion, which was dominated by foreign direct investment. The Investment has absorbed a workforce of around 6,183 people.
Based on the investment sector, the most popular business sectors in Southeast Sulawesi are Basic Metal Industry, Metal Products, Non-Machinery and Equipment.
Second place is Transportation, Warehousing and Telecommunication and the third position is Food Crops, Plantation and Animal Husbandry.