Investor ready to invest US$1 billion in Sei Mangkei and Mandalika

Photo CMEA

JAKARTA (TheInsiderStories) – A number of investors are ready to invest US$1 billion in two Special Economic Zone (SEZ) in Sei Mangkei, North Sumatra and Mandalika, West Nusa Tenggara. The commitment has manifested in a Memorandum of Understanding (MoU) between investors and the SEZ Managing Body.

Coordinating Minister for Economic Affairs Darmin Nasution said, PT Alternative Protein Indonesia (API) is ready to invest $500 million in Sei Mangkei while Mandalika get sparked investment in tourism sector around Rp7 trillion.

“We hope that each specific area has a managing body that has the capacity to encourage investors. Do not let the SEZ is not known by investors because the the body is not well-perform,” he said.

According to the him, every SEZ has its own peculiarities that attract investors. Sei Mangkei for example, suitable for industrial downstream palm oil (crude palm oil / CPO) and rubber. While Mandalika is more suitable for agro industry and tourism.

Currently, the government has developed 11 SEZs. Beside Sei Mangkei and Mandalika, there are others SEZ namely Maloy Batuta  in East Kalimantan, Sorong in West Papua, Morotai in North Maluku, Bitung in North Sulawesi, Palu in Central Sulawesi, Tanjung Lesung in Banten, Tanjung Kelayang in Belitung, Tanjung Api-Api in South Sumatera and Arun Lhokseumawe  in Aceh.

Commenting on the new investment, President Director of PT Perkebunan Nusantara (PTPN) III Dasuki Amsir said, Sei Mangkei are ready to provide tax incentives for the investors. API, He continued, as a potential investor plans to build five bio reactor insects to produce proteins used for food and feed.

“In the next five years, they also plan to increase investment up to $4 billion to build total 25 bio reactors to produce 2.5 million tons per year,” he added.

The investment from API adds to a row of investors already investing in Sei Mangkei. Some of these companies include PT Unilever Oleochemical Indonesia which produces soap, noodles, fatty acids, and others with a capacity of 200,000 tons per year and PT Industri Nabati Lestari which has produced cooking oil with capacity 600,000 tons per year.

Secretary of the National Council of SEZ Enoh Suharno Pranoto estimates investment in 11 SEZs could reached Rp720 trillion until 2025. In Sei Mangkei itself, the total investment is forecast could reached $123. 3 billion with the absorption of 83,304 workforce. Meanwhile, Mandalika is expected to absorb investment around $28,63 billion and 58,700 workforce until year 2025.

In Mandalika, there are four hotels and one tourist attraction to be built. The four investors of the hotel are PT Metro Lestari Utama, Sky Wealth, PT Bangun Megatama Wisata Mahadewi, and Alam Hijau Permai (Pullman). While the South Korean investor, Jeju Ello Foundation plans to build a tourist trail.

In addition, Road grip Indonesia and MKRI are also committed to supporting the construction of a racing circuit together with a French state company with an estimated investment of Rp5 trillion.

In addition to these hotels and circuits, several investors who have started to build hotels include PT Indonesia Tourism Development Corporation (ITDC) Persero which is also the Managing Body of  Mandalika SEZ, PT Bauer, PT Lees International Development, and PT Elmar Mitra Perkasa. In addition, there is also Woori Investment and Development Property which builds the convention center.