TEMPO.CO, Jakarta-The government is preparing a regulation (PP) on the establishment of West Papua city Sorong as a special economic zone (KEK) with an estimated investment value of Rp5 trillion. The Sorong Economic Zone will be targeted at industries in the fields of agriculture, forestry, fishery processing, chemical processing, and oil and gas.
Cabinet secretary Pramono Agung said that President Joko Widodo has approved the establishment of Sorong as a special economic zone. Widodo gave the West Papua provincial government two weeks to finalize and submit the proposal to the central government.
In a closed meeting yesterday, the president instructed technical ministries to immediately calculate the potentials for production, market, and electricity availability and state them in the Sorong Special Economic Zone's development plan.
Jokowi asked for relevant institutions to integrate the management and operation of sea tolls wit Papua's industrial areas and production centers, "so that ships that come and go to Papua can carry goods produced in Papua," he said.
Pramono said that the government regulation will be accommodated by the Coordinating Ministry for Maritime Affairs once the Sorong and West Papua regional governments officially made the proposal.
Sorong Regent Steve Malak said there are a number of existing companies that inhabit the lands around Sorong's special economic zone, including PetroChina—the energy supplier to nearby plants, as well as oil palm and plywood local company PT Inti Persada Henrison. Steve also said that a number of conglomerates groups like Salim Group and Lippo Group are conducting studies for prospective investments in the zone.
Once Sorong's status as a special economic zone is legit, Steve said, it can boost new investments that will drive the local economy; allowing the area to become a center for logistics and production of raw materials.