The Kalimantan Industrial Park Indonesia (KIPI) project in North Kalimantan, supported by Chinese investment, has introduced both economic opportunities and significant challenges. Launched in December 2021, KIPI is part of Indonesia's National Strategic Projects, aiming to become the world’s largest green industrial park, focused on producing EV batteries, petrochemicals, and aluminum. The project spans 30,000 hectares and involves companies from China, Indonesia, and the UAE. Local businesses, like those of fish vendor Kaesi and travel agency owner Muhammad Akbar, have benefited from the influx of Chinese workers, who have become regular customers and boosted the local economy.
However, the project has sparked controversy over issues such as transparency, land rights, and workers' rights. Activists and the Nugal Institute have raised concerns about the lack of proper contracts for local laborers and allegations of illegal land seizures, with residents fearful of speaking out due to potential retaliation. The Indonesian government has faced criticism, with Komnas HAM documenting 1,675 human rights abuses related to National Strategic Projects over the past three years. Despite these issues, officials maintain that all processes have been conducted legally. Additionally, the project has led to cultural shifts, including the introduction of Chinese-language road signs and a Chinese-language course at Kaltara University, further deepening Chinese influence in the region. While some locals benefit, others express frustration over perceived preferential treatment of Chinese workers and the impact on their traditional livelihoods.
