RI Govt confirms huge iron ore deposit in Kulon Progo

RI Govt confirms huge iron ore deposit in Kulon Progo

MS Hidayat. (ANTARA News)

Yogyakarta (ANTARA News) - Industry Minister M.S. Hidayat has confirmed the presence of a deposit of 300 million tons of iron ore in Kulon Progo and that the government will support exploitation of the mineral by investors.

"I have information that some investors are willing to set up a steel processing industry with a capacity of 500,000 tons and increase it to 2.0 million tons per year," Minister Hidayat said in Yogyakarta on Monday.

Speaking at a gathering organized by the industry ministry`s communication forum , businessmen and related institutions, Hidayat said the investment required for the steel processing industry at Kulon Progo would be 600,000 million US dollars.

"I support the initiative because the construction of the steel industry (at Kulon Progo) is expected to meet the domestic demand for steel as the country still imports more than 4.0 million tons of steel annually," he said.

The government will support the establishment of steel industry by providing fiscal incentives, including tax allowance or tax holiday to both domestic and foreign investors.

On other issues, Minister Hidayat also said that he will support the wish of the Central Java province government to develop a special economic zone at Kendal regency. The government will facilitate the preparations of the required strategic plan documents as one of the preconditions for such project.

The central government, however, expects that the Central Java province government will prepare the master plan, economic feasibility study and the environmental impacts analysis.

"For that the team the governor has set up for the development of the special economic zone expected to work optimally," Minister Hidayat said.