Minister inaugurates Special Economic Zone in Palu

Palu, C.Sulawesi (ANTARA News) - Coordinating Minister for Economy Darmin Nasution inaugurated a Special Economic Zone (SEZ) in Palu, Central Sulawesi Province.

"The SEZ in Palu is the first of the 11 SEZs being built in several provinces across Indonesia to be inaugurated. The Central Sulawesi governor is confident about achieving a breakthrough to make the SEZ in Palu the first special economic zone to be inaugurated," the minister said in his speech here on Wednesday.

According to the minister, the SEZ is specifically designed by the central government to encourage processing industries and help the locals expand their market to boost the peoples welfare.

"The SEZ also aims to attract potential investors to conduct business in several strategic fields, such as agriculture, forestry, and maritime and fisheries, in order to open up prospects in the global market," he said.

Hence, Nasution said, all investors who conduct their business in strategic commodities in the Palu SEZ will be granted a tax holiday within a certain period of time.

In addition, they will easily obtain licenses, either those under the central government or the governor and regent/mayor authorities.

"Investors are allowed to realize their investment, although the Building Permit (IMB) is still being processed. The important aspect is that investors have met the requirements of obtaining the IMB and their businesses are under the supervision of the local administrations," he said.

Meanwhile, Central Sulawesi Governor Longki Djanggola said the SEZ in Palu will be built on an area measuring 500 hectares and has a complete institution as the manager.

The SEZ in Palu will be managed by PT. Bangun Palu Central Sulawesi (BPST), a local company belonging to the Palu city administration. The BPST has formed a consortium called KEK-Palu Public Private Partnership Investment Center.

The consortium comprises several national and foreign private companies -- PT. STM Tunggal Jaya, an engineering consultant; PT. Deloitte Indonesian Consultant, an infrastructure and capital project advisory; Penida Capital Advisory; Korean Engineering Consultant Corporation; and Hermawan Juniarto Law-Firm -- engaged in various fields, such as engineering, consultancy, and law.

PT. STM Tunggal Jaya, the main strategic partner of PT. Bangun Palu Sulawesi, is managing the SEZ in Palu and will build the physical facilities and infrastructure in the area, with an investment of Rp7.2 trillion.

Currently, seven investors have realized their investment in the Palu SEZ, with a total investment plan of some Rp145 billion in various business sectors.(*)

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