The Ministry of Industry reviews the development of Industrial Estates in Bintuni Bay

The Ministry of Industry reviews the development of Industrial Estates in Bintuni Bay

The Ministry of Industry reviewed the development of the Bintuni Bay Industrial Estate, West Papua, as an effort to actively increase investment into Indonesia, especially in the manufacturing industry sector. The strategic steps undertaken to attract these investors include promoting priority industrial areas in Indonesia, including outside Java.
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"One of them is being accelerated by the government, namely the petrochemical industrial area in Bintuni Bay, West Papua. This area is listed as a National Strategic Project (PSN) and we propose it to be a priority through the National Medium-Term Development Plan (RPJMN) for 2020-2024, "said the Ministry of Industry's Upstream Chemical Industry Director Fridy Juwono in his statement in Jakarta on Thursday.
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Fridy explained that the development of the petrochemical industrial area in Bintuni Bay is a tangible manifestation of the government's seriousness to develop an inclusive economy to the eastern regions of Indonesia, especially West Papua, by utilizing existing resources.
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"This also creates a centric Indonesia in an effort to equalize development and prosperity," he said. The industrial estate in Bintuni Bay is considered to have the potential of natural resources that can support the development of the petrochemical industry.
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For example for the methanol industry and its derivatives as well as the ammonia industry and its derivatives, which are strategic sectors to further strengthen the structure and supply chain of domestic manufacturing.
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Therefore, some time ago, Fridy along with the Special Staff of the Minister of Industry Amir Sambodo and Inspector IV of the Ministry of Industry Achmad Rodjih Almansoer held a site visit with potential investors who had expressed their interest in investing in petrochemical industry projects in Bintuni Bay.
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"Potential potential investors include Kaltim Methanol Industri, Pertamina Power, Wijaya Karya, Karya Mineral Jaya, Samsung C&T, and Pelindo IV," he said. Fridy said the group was received by the Vice Regent of Bintuni Bay Matop Kokop and the Head of the Bintuni Bay Bappeda Alimudin Baedu.
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The group also visited Onar Village, which is the location of the development of a petrochemical industrial area in Bintuni Bay. "According to the Head of Bappeda, currently the Bintuni Bay Regency Government is completing the obligation to pay 50 hectares of land to indigenous peoples, and is expected to be completed this year," he said.
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During the visit to Onar Village, the group was also welcomed by the Head of the Indigenous Community Institution (LMA), the Head of the Onar Baru and Onar Lama Villages, and the Chairman of the Marga Agofa. The group was welcomed with a knock on the door procession at the Kampong Onar Pier.
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"The procession marks a good reception from the people of Desa Onar for the plan to develop a petrochemical industrial area in Bintuni Bay, and for the investment that will be invested in their area," said Fridy.
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According to him, one of the potential development of the petrochemical industrial area in Bintuni Bay, namely BP Tangguh, has stated that it is ready to support and distribute 90 MMSCFD of natural gas to a 900 kilo ton per year methanol plant with production capacity in 2022.
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Then, the industrial estate and methanol plant project in Bintuni Bay is projected to absorb up to IDR 13 trillion investment and will involve 1,000 workers at the construction stage and 500 workers at the operation stage.
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"The development of this industrial area will be carried out with a cooperation scheme of the government and business entities (PPP), where the project development facility (PDF) was approved by the Minister of Finance on January 24, 2020," said Fridy.
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It is hoped that the project preparation process can begin immediately and transactions or auctions can be carried out within the next nine months.