The Benefits of Sorong Special Economic Zone

Almost all of the regions in Indonesia are blessed with rich natural resources. The variety and capacity are also varied. The main resources of Sei Mangkei, Simalungun Regency, West Sumatra, for example, are rubber plantation and palm plantation, and that is just one region, what about the hundreds of other regions in Indonesia?  Of course they have abundant of potentials.

The overwhelming natural resources, if it’s being managed correctly, will increase the economic value of that region. Therefore, the government has made Special Economic Zone (SEZ) for the optimization of the region’s natural resources. Hence, the production can be improved in an organized setting, legally and in large industrial scale.

Sorong Special Economic Zone
Sorong city from helicopter view via pemeriksaanpajak.com

According to Government Regulation Number 39 of 2009 regarding Special Economic Zone, it is explained that the goal of SEZ is to accelerate the economic development in regions that have strategic values for the national economy, and to maintain the equal distribution of developments in all regions in the continuum of national economy.

Moreover, it is also explained that Special Economic Zone, from now on would be referred to as SEZ, is a region with assigned borders within the leagl territory of the Unitary State of the Republic of Indonesia that has been appointed to carry out the economical functions and will obtained a certain facilities.

Since 2009, 10 regions have been appointed by the government as the Special Economic Zone. In the official website of  SEZ National Council, the 10 regions are:

  1. Sei Mangkei
  2. Tanjung Api-api
  3. Tanjung Kelayang
  4. Tanjung Lesung
  5. Mandalika
  6. MBTK
  7. Palu
  8. Bitung
  9. Morotai
  10. Sorong
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From the 10 regions that has been officially appointed by the government in Saturday (8/10), Sorong Regency has become the new region being appointed as SEZ. What are the potential natural resources that can be managed and what are the benefits that the Papuan people will have?

In West Papua Province, Sorong Regency becomes the first region that has been appointed as SEZ. This is an opportunity to increase the region that is famous for its sea wave to develop and optimize its natural resources. The chosen location for developing SEZ vision and mission is Mayamuk District with a total area around 523,7 ha.

According to the data of SEZ National council, Sorong Regency has two advantages that makes it qualified to be a Special Economic Zone. First, the geo-economic advantage. Sorong Regency has Sele Strait that has potential in fisheries sector and sea transportation. The central and local government have also predicted that Sele Starit is a great location for logistical industry, export processing industry, and industries that are based on maritime tourism, agricultural and also mining.

Second, from the geo-strategic factor, Sorong Regency is in the sea route of of international trading in Asia Pacific and Australia. This position is beneficial because there will be many ships going back and forth to cross the Sorong sea.

This is also emphasized by Jokowi after he has signed the Government Regulation Number 31 of 2016 regarding Sorong Special Economic Zone in August. He said that there are three zones that will be developed in Sorong, which are logistic, industry and export process zones.

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Special Economic Zone in Sorong Regency will absorb around 15.024 people to work until 2020 with the development investment around 2,4 trillion IDR. In order to support Sorong as Special Economic Zone, the Ministry of Industry has already built several infrastructures.

“The Government will seek to facilitate the infrastructure requirements, for the time being, we have Sorong Container Port, Arar Port, and Sorong Airport,” said Imam Haryono, Director General of Regional Industry Development of the Ministry of Industry, cited from Kontan.

Therefore, the support of every party such as the Central Government, Provincial Government of West Papua and the Regency Government of Sorong along with the business shareholders and the local people to build and develop Sorong SEZ. The development of SEZ in Sorong can hopefully create a better environment for investment in Papua and accelerate the economic wheel.


 

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