Tuesday, July 16, 2024

Jokowi formalizes SEZ establishment in South Kalimantan’s Tanah Bumbu regency

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President Joko “Jokowi” Widodo signed Government Regulation No. 26/2024 on Thursday, June 13, 2024, formalizing the establishment of the 668-hectare Setangga Special Economic Zone (SEZ) in Simpang Empat sub-district, Tanah Bumbu regency, South Kalimantan.

The initiative for Setangga SEZ was proposed by PT Dua Samudera Perkasa, a port management company that is part of the Jhonlin Group. PT Dua Samudera Perkasa operates three ports, including Kodeco and Sungai Dua, which support the operations of Jhonlin Group and its subcontractors, particularly in the loading of coal and iron ore.

The Jhonlin Group is owned by local entrepreneur Samsudin Andi Arsyad, also known as Haji Isam, who hails from Kotabaru, South Kalimantan. Haji Isam previously served as the Deputy Treasurer for the Jokowi-Ma’ruf Amin campaign team in the 2019 Presidential Election.

The government regulation stipulates that the Setangga area boasts significant potential and advantages in terms of the supply chain for raw materials in South Kalimantan. This makes it a strategic location for downstream processing of palm oil, nickel, iron, rubber, and wood. The development of these industries is expected to attract substantial investment and create numerous job opportunities.

The area is deemed ready for development into a special economic zone, with planned infrastructure including specialized ports and terminals, power plants, and facilities for downstream industries aimed at both export and import substitution.

Key industrial sectors targeted for development in the Setangga SEZ include nickel smelting, iron processing, biodiesel production, palm oil processing, wood processing, cooking oil fractionation, and rubber processing.

The establishment of the Setangga SEZ aligns with Indonesia’s broader economic goals of enhancing industrial capacity, promoting export-oriented industries, and reducing dependency on imports. This initiative represents a significant step in leveraging the region’s natural resources and strategic location to foster economic growth and development in South Kalimantan.

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