North Kalimantan Develops Strategic Projects KIHI and Kayan Hydroelectric Plant to Support IKN

North Kalimantan is aggressively pursuing strategic development projects, including the Indonesia Green Industrial Estate (KIHI), the Tanah Kuning–Mangkupadi International Industrial and Port Area, and the Kayan Cascade Hydroelectric Power Plant. Governor Zainal A Paliwang stated these initiatives are crucial for supporting the supply chain of Indonesia's new capital, Nusantara (IKN). He emphasized that these projects will significantly enhance the competitiveness of the border region, positioning it as a resilient and sustainable new economic hub.

The province's development strategy extends beyond infrastructure and energy. There is a strong focus on downstream processing for the fisheries and seaweed sectors, alongside the development of green energy. Governor Zainal views the potential of these resources as vital for bolstering IKN's supply chain and strengthening the border area's economic standing. He noted that the development of IKN opens broader avenues for collaboration between North Kalimantan and Sabah, Malaysia, spanning trade, investment, logistics, employment, tourism, and food security.

During the 28th Malaysia-Indonesia Social Economy Working Group (Sosek Malindo) meeting in Tarakan, Governor Zainal engaged with Datuk Jamili Nais, Chairman of the Sabah Sosek Malindo Working Committee. This meeting served as a follow-up to discussions held in Sandakan, Malaysia, in 2025, aiming to evaluate ongoing programs and address challenges to improve bilateral cooperation. Zainal stressed the strategic importance of the relationship between North Kalimantan and Sabah, underpinned by geographical proximity, shared culture, and long-standing social ties.

He expressed hope that the recommendations from the Sosek Malindo meeting would be realistic and actionable, fostering mutual benefit for Indonesia and Malaysia. The governor welcomed the delegates, viewing their full participation as a testament to a shared commitment to strengthening the friendship and cooperation between the two nations, particularly between North Kalimantan Province and Sabah State.