Lhokseumawe to Develop Fertilizer and Paper Industrial Center

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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- The government has agreed to establish Lhokseumawe, Aceh, as a special economic zone. Coordinating Maritime Affairs Indroyono Susilo said that the government will boost fertilizer and paper industries in the area.

    “Those industries will be revitalized,” Indroyono said in Jakarta on Saturday, August 8.

    The new bill was issued with agreements made between the central government, the North Aceh administration and the Lhokseumawe administration to jointly manage the area.

    The special economic zone will be built on a formerly gas mining areas owned by PT Pertamina. A land with a total size of 3,000 hectares is being prepared for industrial development. The fertilizer and paper factories will be integrated since both have similar raw materials. The fertilizer industry is a party of PT Pupuk Iskandar Muda’s expansion plan.

    However, the government has yet calculated the total amount of investment needed for the project development. The government set a target to kick off the project in October.

    “Investors will join in October,” Indroyono said.

    ROBBY IRFANY | FAIZ NASHRILLAH