Coordinating Economic Minister Darmin Nasution inaugurated the special economic zone (KEK) in Riau Islands

News24xx.com -  Coordinating Economic Minister Darmin Nasution inaugurated the special economic zone (KEK) in Galang Batang, Riau Islands, over the weekend.

“The economic zone, which has an estimated investment value of Rp 36.25 trillion [US$2.5 billion], is expected to become a major production center for aluminum and its downstream products,” he said as reported by Antara news agency.

Darmin added that the new KEK would lift economic activity in the region through the employment of over 23,300 workers.

In turn, the minister urged the local community to “support” the zone by supplying it with the necessary skilled workers and supporting businesses such as food and accommodation.

This year, the zone secured Rp 5.6 trillion worth of investment from the zone’s advocate, aluminum producer PT Bintan Alumina Indonesia. The investment includes Rp 951 billion for a seaport, Rp1.65 trillion for an aluminum refinery, Rp 196 billion for a dam and Rp1.93 trillion for a power plant.

The government has attracted investors using a series of fiscal and nonfiscal incentives exclusive to the economic zone.

Bintan Alumina Indonesia director Santoni said he hoped the investment in the economic zone will increase to $5 billion over the next 10 years.

Meanwhile, construction is ongoing for three other special economic zones — Arun Lhokseumawe, Bitung and Morotai — slated to begin operations next year.

 

 

 

 

NEWS24XX.COM/DEV/RED