Boosting Cargo Volume to Kuala Tanjung, ALFI Bolsters Sei Mangkei’s Integrated Industry

The Batang Integrated Industry (KIT Batang) at Special Economy Zone (KEK/SEZ) Sei Mangkei North Sumatera is expected to boost cargo volume at the Kuala Tanjung International Port. Hence, Indonesia Logistics and Forwarders’ Association (ALFI/ILFA) thoroughly support the concept and plan to develop this KIT Batang.

This concept, said ALFI Chairman Yukki Nugrahawan Hanafi, would integrate all logistics infrastructure and facilities, in addition to accelerating business of industry players.

“This concept will boost cargo volume to Kuala Tanjung,” Yukki noted for the press statement yesterday (Saturday, May 1).

This concept, according to Yukki, is in line with the government policy to encourage Kuala Tanjung as an international hub port, while Belawan is expected to focus on serving interisland distribution.

Furthermore, Kuala Tanjung, according to regulations of Perpres No 3/2016 and Perpres No. 56/2018, is integrated with industry zones.

Yukki realizes the KIT Batang will significantly contribute to positive economy growth, both provincial (North Sumatera) and national.

Earlier, Minister of Investment/Head of Investment Coordinating Board (BKPM) Bahlil Lahadalia stated to apply the concept of integrated industry (KIT Batang) in the development of  Sei Mangkei KEK/SEZ, in line with the instruction of President Joko Widodo.

“Today, I come here (KEK Sei Mangkei) to find out what should be improved immediately and how to encourages more tenants to join in. This SEZ is developed on more than 2,000 hectares. But, unfortunately, only five tenants that have been joint, or utilizing only 10% of the total available area,” Bahlil explained in the press statement released Saturday, May 1.

Some factors that discourage more tenants and business players to come include unfinished access toll road development, unfinished railway development and uncompetitive land and gas prices.

Referring to the Omnibus Law (UUCK) No 11/2020, Bahlil further explained, the KEK/SEZ administrator is fully authorized to issue permits but the data should be included in Online Single Submission (OSS) system.

Provision of fast process of business permit, Bahlil noted, is very necessary to boost investment. “We will soon find out what business investment is more proper here as we also expect the economy in Simalungun will run and grow better. The employment will be better with an investment,” said Bahlil.

Regent of Simalungun Radiapo Hasiholan Sinaga conveyed the readiness of the local government to help overcome the obstacles faced by KEK Sei Mangkei.

“We are ready to fully support the development of this Sei Mangkei SEZ. When it develops, it will support the economic growth of Simalungun Regency and also the absorption of its workforce, “said Radiapo.

President Director of PT Perkebunan Nusantara III (Persero) Mohammad Abdul Ghani appreciates the presence of the Minister of Investment / Head of BKPM to KEK Sei Mangkei as a manifestation of the government’s commitment to help accelerate investment.

He hopes the Sei Mangkei SEZ can develop like the Batang Integrated Industrial Zone (KIT) in Central Java, where the first phase of 450 hectares has been successfully filled in just nine months.

“As stated by the Minister, with investment, we can grow the economy. Our hope is that if the industry grows, tens of thousands of people will become employees and then grow the economy and the welfare of the surrounding community. We will follow the Minister’s instructions, like in Batang,” said Gani.

KEK Sei Mangkei is run by PT Kawasan Industri Nusantara which is a subsidiary of PTPN III. KEK Sei Mangkei has main activities in the form of the palm oil processing industry, rubber processing, tourism and logistics. If it goes according to plan, the SEZ Sei Mangkei is projected to attract a total investment of IDR 129 trillion and absorb a workforce of 83,304 people in 2031.


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