The government of Southwest Papua is pushing for two Chinese investors to construct a nickel smelter and a steel manufacturing plant in the Sorong Special Economic Zone (SEZ), with an estimated investment value of IDR 75 trillion (US$4.8 million).
This plan was discussed during a restricted coordination meeting held at a hotel in Sorong City on Saturday, March 16, 2024. The meeting focused on the groundbreaking ceremony for the construction of the smelter.
George Yarangga, Economic Development and Finance Expert of the Southwest Papua Governor, expressed the provincial government’s commitment to collaborate with the Sorong Regency Administration to ensure the success of the Sorong SEZ this year. The construction of the nickel smelter and steel plant is expected to play a crucial role in this endeavor.
During the meeting, it was reported that the construction of these facilities would require 500 hectares of the available 1,000 hectares of land in the Sorong SEZ.
The investors, PT Sheng Wei New Energy Technology and Beijing Jianlong Heavy Industry Group, are eager to proceed with the project.
George emphasized the importance of addressing any potential challenges in the investment process through government intervention to ensure a smooth and expedited groundbreaking process.
Adriana Imelda Daat, CEO of PT Sino Consultant Investment, said that her company, a consulting firm, had brought these two investors to Indonesia since 2023.
PT Sheng Wei New Energy Technology will be responsible for building the nickel smelter, while Beijing Jianlong Heavy Industry Group will construct the steel plant.
According to Adriana, the investors have thoroughly assessed the Sorong SEZ and deemed it suitable for their investment plans. They intend to implement green economic methods in the construction and operation of the facilities.
The construction of these plants is expected to create numerous job opportunities, with an estimated initial workforce requirement of 3,000 employees. Adriana hopes that local workers, particularly indigenous Papuans, will be extensively involved in these projects.
Ru Guo Sheng, Director of PT Sheng Wei New Energy Technology, expressed his appreciation for the government’s cooperation and affirmed their commitment to investing in Papua, particularly in Sorong Regency. He believes that this investment will significantly contribute to the economic growth of the Papua region.
The collaboration between the government and investors underscores the potential for economic development and job creation in the region, paving the way for a prosperous future for Southwest Papua.
