Govt to Designate Lhokseumawe as Special Economic Zone

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  • Kilang gas PT Arun LNG di Lhokseumawe, Aceh. TEMPO/Marifka Wahyu Hidayat

    Kilang gas PT Arun LNG di Lhokseumawe, Aceh. TEMPO/Marifka Wahyu Hidayat

    TEMPO.CO, Jakarta - President Joko Widodo said that the central government and the Aceh provincial government had agreed to designate Lhokseumawe city in Nangroe Aceh Darussalam province as a special economic zone.

    The decision was made after the President met with Aceh Governor, Zaini Abdullah.

    In the meantime, Coordinating Minister for the Economy Sofyan Djalil at the State Palace on Friday (7/8) said that the central government did not object to the plan as long as the special economic zone would develop the region.

    Lhokseumawe, according to Sofyan, has a host of potentials, including the land, which was formerly an Arun natural gas mining owned by state-owned oil and gas operator PT Pertamina.

    According to Sofyan, the 3,000-hectare land would be developed as an industrial zone to attract investors.

    However, he said that the main problem in the development of the area is the fact that natural gas reserve in the area is running out.

    FAIZ NASHRILLAH