Malang regency in East Java province has been expanding a frozen warehouse facility, which is part of the Investment Coordinating Board (BKPM)’s 47 national projects. The investment for this project worth IDR 15.46 billion.
East Java is a province with an area of 46,428 square kilometers (sqkm). Its capital Surabaya is the second largest city in the country after Jakarta. The province offers 28 investment opportunities and it boasts 11 industrial centers, 6 airports, 32 ports, 248 educational facilities, 473 hotels and 344 hospitals.
Meanwhile, Malang regency is the second largest in East Java after Banyuwangi. The regency has a total area of 3,530.65 sqkm. In 2020, its population reached 2,654,448 people. Most of the people are Muslims, accounted for 92.37% in 2021.
The BKPM is a governmental institution, established in 1973. Investment Minister Bahlil Lahadalia has chaired the board since 2021. The institution is tasked with coordinating investment projects all over Indonesia and implementing policies across the nation.
Frozen warehouse facility
The frozen warehouse facility is located in the Pondok Dadap fishing port, Malang Regency. The East Java administration owns the 3,600 sqm area. In 2018, the factory’s asset is worth IDR 15.456 billion per year, or 3.5% contribution, while the profit sharing is 59% of the net profit of IDR 1,077,153,000, making the total earnings of IDR 1,618,114,000.
The icing storage factory has a production capacity of 5 tons/day with cold storage of up to 100 tons. The volume of the production reached 6,405,064 tons and the value of the production reached IDR 73,685,418,265 in 2019.
Natural disaster as challenges
However, there are risks to the regency such as natural disasters. Acting Head of the Emergency and Logistics Division of Malang Regency Disaster Mitigation Agency (BPBD), Sadono Irawan, said that Malang was an area with high potential for natural disasters such as floods and landslides.
The latest disaster in Malang regency took place in March 2022 whenheavy rains poured in, damaging roads and bridges. According to the Malang regency’s head of public works agency, Romdoni, the agency would repair the damaged roads at several points.
