Indonesian government officially inaugurated Sorong Special Economic Zone (SEZ) in West Papua Province in 523.7 hectares of land and is estimating need investments Rp2.3 trillion (US$183.12 million) - Photo by CMEA Office

JAKARTA (TheInsiderStories) – Indonesian government officially inaugurated Sorong Special Economic Zone (SEZ) in West Papua Province, said the government today (10/11). The new SEZ operates on 523.7 hectares of land and is estimating need investments worth of Rp2.3 trillion (US$183.12 million).

The main activities at Sorong SEZ include nickel and palm oil processing, forest products, plantations (sago), as well as the construction of logistics warehousing. The zone is projected to be able to absorb as many as 15,024 peoples.

West Papua Governor Dominggus Mandacan expect, Sorong SEZ be able to attract new investment Rp32.5 trillion. He believed the project could boost the economy of the regency with a projected increase in Gross Regional Domestic Revenue of approximately Rp10.64 trillion by 2030.

He revealed, investors who have joined the Sorong SEZ include PT Semen Gresik (unit of Semen Indonesia Group) to build a cement packaging factory, PT Henrison Inti Putra to build a wood and palm processing factory, and PT Bumi Sarana Utama (Kalla Group) to build bulk asphalt storage.

Other investors who will enter are PT Gag Nickel (nickel smelters), PT Pelabuhan Indonesia IV (build Arar Port for connectivity and logistics), PT Numarin Terra Anugerah (fisheries cold storage), and PT Power Gen (construct a 20 MW Gas Engine Power Plant).

“We also hope that smelters will be built in this area,” he adds.

In terms of infrastructure, over the past three years, public works and public housing ministry has built access to the main road along with a drainage channel of 3.5 kilometers and a 6.5 kilometers of environmental road.

In addition, gas engine power plant Waymon, Arar and diesel power plant by state-owned power producer PT Perusahaan Listrik Negara has also been built to supply the electricity needs in the Sorong Raya area, so that currently there is a Capable Power of 46 MW with reserves of 9 MW.

And for the long term, a drinking water supply system will be built using water sources from the Klasafet River (Klamono) with a capacity of 500 liters per second.

During the kicked of the new SEZ on Friday (11/10), coordinating minister for economic affairs (CMEA) Darmin Nasution revealed that with its potential, Sorong SEZ could become one of the pillars of national food security, especially marine-based protein.

To date, said the minister there have been 13 SEZs has established (consisting of 8 manufacturing SEZs and 5 tourism SEZs), of which 11 SEZs are already operating, including Sorong SEZs. Total investment flows to the 13 SEZs has reached Rp85.3 trillion, and it is expected that in 2030, the investment worth of Rp726 trillion.

US$1: Rp14,100

By Linda Silaen, Email: linda.silaen@theinsiderstories.com