KATADATA - The government plans to build eight special economic zones over the next four years including one in Tanjung Api-api, which is earmarked as an industrial area for the energy sector.
Energy and Mineral Resources Minister Sudirman Said, who visited Tanjung Api-api in South Sumatra, on Sunday (20/3), mentioned that construction of the industrial estate there has progressed quite rapidly, in terms of both infrastructure and design. (Read: Five Economic Zones Are Not Ready to Operate Due To Land Issue)
The main purpose of his visit to the area was to ensure the zone’s demand for energy could be met. The new special economic zone will be used as a Middle East investment hub. "Dubai Port Authority is very serious about investing in the area," Sudirman explained in a statement on Sunday (20/3).
Tanjung Api-api is poised to become an integrated energy industrial area. Energy industries that will be developed there include coal gasification, coal liquefaction and power plants, fertiliser plants, cement plants, tyre factories, palm oil processing mills and downstream petrochemical industries. (Read: Investors in Special Economic Zones to Get 9 Incentives)
South Sumatra Governor Alex Noerdin confirmed that the development of the estate is going well. "We have demonstrated that the government and all the stakeholders are serious about developing Tanjung Api-api special economic zone," he added.
Alex also proposed constructing an oil refinery in Tanjung Api-api to replace elderly refineries in South Sumatra that were built during Dutch colonial times. In response, Sudirman said that this proposal would require a comprehensive and in-depth study. (Read: Government Having Difficulty Finding Strategic Locations to Build Refinery)
Several private companies have expressed an interest in building and developing power plants in Tanjung Api-Api, including the consortium Indocoal International, which plans to build a 2x300 MW steam power plant. (Read: Coal Stock for 20 GW Power Plant Insufficient)
With the total investment of US$ 3.37 billion, Tanjung Api-Api special economic zone occupies an area of ??2,030 hectares. The industrial estate will host a variety of industries and employ up to 150,000 workers.
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