Maloy Special Economic Zones in East Kalimantan - Photo: Privacy

JAKARTA (TheInsiderStories) – Indonesia will inaugurate two new Special Economic Zones (SEZ), namely Tanjung Api-Api in South Sumatra and the Maloy Batuta Trans Kalimantan in East Kalimantan in 2019, said one government official on Thursday (12/27).

Currently 12 SEZs has been developed by the government like Sei Mangkei in North Sumatera, Tanjung Lesung in Banten, Mandalika in Lombok, Palu in Central Sulawesi, Arun Lhokseumawe in Aceh, and Galang Batang in Riau.

East Kalimantan Governor Isran Noor said that the process of establishing the Maloy SEZ has entered the final stage. However, the certification has not been issued by the National Defense Agency.

“Maloy SEZ can be operated no later than February 2019,” he said in Jakarta by adding Maloy had succeeded in attracting investors to build a port and a palm oil processing industry in the economic zone areas.

Noor also ensured that the presence of SEZ’s which had been established since October 2014 could cut both time and logistical costs, making it faster and more efficient to export goods to East Asian destinations such as China or South Korea.

“If you export goods from Surabaya, it can take 29 days. But, if you pass through East Kalimantan, it will only take nine days,” he said.

Maloy SEZ located in East Kutai Regency, East Kalimantan, has a total area of 557.34 hectares, and was determined through Government Regulation Number 85 of 2014. The SEZ located between the Makassar Strait and crossed by the Trans Kalimantan and Tarakan – Tolitoli toll road, also Balikpapan – Mamuju ferry crossing transportation.

Until 2025, the SEZ is targeted to attract investment of Rp34.3 trillion (US$2.35 billion) and increase the East Kutai gross regional domestik product to Rp4.67 trillion per year.

While for Tanjung Api-Api SEZ, the Governor of South Sumatra Herman Deru stated will include the Tanjung Carat port area into the areas. He stressed that toll road access had been prepared from Palembang towards the Tanjung Api-Api to support its operations. Tanjung Api-api focus on three main industries rubber, oil palm and petrochemical.

Russian investor is eyeing oil projects in Tanjung Api-api SEZ and prepared to invest up to 10 billion euros. Beside, the country’ chemical company PT Indorama Synthetics Tbk (IDX: INDR) is also interested to build regasification industry with total investment Rp12 trillion.

The National Council of SEZs in March 2017 has met PT Palembang GMA Refinery Consortium (PGRC) and its strategic partners, Royal Haskoning DHV, Dassault Systemes, PT Rekayasa Industri, PT Control Systems Arena Para Nusa, PT Usaha Bersama Niaga Hutama And PT Meindo Elang Indah.

PT PGRC is ambitious to build a refinery with a capacity of 300,000 barrels per day and the petrochemical industry as its derivatives. In this case, the company will import crude oil from Iran for processing in Tanjung Api-api.

The contract for 25 years has been done with the outside party to ensure supply of raw materials for Tanjung Api-api. The company will build a special port with three terminals for crude with 26 km pipeline, Fuel Terminal and Liquefied Natural Gas. Construction work will begin in May 2019 and they expect groundbreaking to be implemented more quickly, supported by land readiness.

Tanjung Api-Api SEZ has the status of Special Economic Zone (SEZ) for export processing, logistic, industry, and energy which was newly launched by the government of Indonesia in 2014. With the total area of 2,030 Hectares.

US$1: Rp14,500

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