REPUBLIKA.CO.ID, BEIJING -- China's Hebei Bishi Steel Group would go ahead with its plan to establish a steel factory in Patebon Subdistrict, Kendal District, Central Java Province. The group has vowed to prioritize employment of local people, an Indonesian government official said.

The Chinese steel factory will start operating in 2019 or, at the latest, by 2020, Head of Kendal District Mirna Annisa told Antara here on Wednesday, when questioned about the group's investment commitment in the district area.

The total investment for constructing the steel factory, expected to be the biggest of its kind in Asia and with the capacity to absorb 6 thousand to 10 thousand workers, is worth US$2.54 billion, she noted.

Hebei Bishi Steel Group, whose headquarter is located in Tangshan, Hebei Province, would collaborate with its Indonesian partner, PT Seafer Kawasan Industri, which has provided it with 700 hectares of land in Patebon Subdistrict, she stated.

Also read: Chinese companies must prioritize Indonesian workers: JK

For the first step, the Chinese company plans to build a steel factory with a production capacity of three million tons and cooking coal of 2.4 million tons. It is supported by a power plant, with a total capacity of 270 Megawatts, and supporting piers, with a capacity of 100 deadweight tons (DWT).

"For the second step, other supporting infrastructures, including a seaport and road, will also be constructed. The total funds invested by this Chinese company reaches around Rp42 trillion (US$1= Rp14,337)," she explained.

Meanwhile, Director of Hebei Industry Group Deng Ji earlier expressed his willingness to make their investment into reality soon in Seafer Kendal industry complex in Kendal, Central Java.

"We have signed the agreement, and we want to make it real soon. Even if it is possible, we would like to invest more in Central Java," he noted.

Deng Ji remarked that Hebei's investment in Central Java is one of the pilot projects of China's "One Belt One Road" initiative in Indonesia.

From his Indonesian counterpart, President Director of PT Seafer Kawasan Industry, Harry W Sudarwo, claimed that he had allocated a 700-hectare land for the investment project.

"The land had been prepared, and the permit is already in our hand," Sudarwo added.

The signing of an agreement between Hebei Bishi Industry and PT Seafer Kawasan Industri took place in Beidahe, Hebei Province, on Monday, and was witnessed by Indonesian Ambassador to China Djauhari Oratmangun, Deputy Governor of Central Java Heru Sudjatmoko, and Annisa.

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