Tuesday, July 16, 2024

Major investment boost for Tanjung Sauh economic zone

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Panbil Group of industrial businesses has announced a massive investment plan for the Tanjung Sauh Special Economic Zone (SEZ) in Batam, projected to reach Rp190 trillion (US$11.5 billion) over the next 35 years.

The Tanjung Sauh SEZ, which has been determined as a National Strategic Project (PSN), is expected to attract both domestic and international investors, particularly from China.

Johanes Kennedy Aritonang, Chairman of Panbil Group, revealed that the Tanjung Sauh SEZ will initially focus on Tanjung Sauh Island, with future expansion to include Ngenang Island.

“The largest and first investments will come from China, followed by Singapore and Japan,” Johanes said in an interview with Tempo.

The detailed list of foreign companies participating in the development will be disclosed at the groundbreaking ceremony alongside the government.

Currently, Panbil Group is forming a management body and preparing the master list of equipment needed for the initial construction phase, which will focus on infrastructure development.

The initial phase, with an investment of Rp 5-10 trillion, will cover basic infrastructure such as floor plans and reservoirs.

“Given the island’s independent water supply, we will also construct ports, wastewater treatment facilities, roads, and environmental amenities. This phase is expected to take five years,” Johanes said.

The first phase’s investment of Rp10 trillion is just the beginning, with total investment from developers projected to reach Rp30-35 trillion. Additional investment from other investors will contribute to the cumulative total of approximately Rp180-190 trillion over the next 10 to 20 years.

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