Development of Sabang as free port to be discussed

Development of Sabang as free port to be discussed

JAKARTA (JP): A joint board comprising of Sumatra governors
and the Indonesian Maritime Council will be set up to discuss the
development of Sabang free port, on Weh Island in Aceh province
and on the west coast of Sumatra island.

"In the wake of regional autonomy, the central government here
is functioning as facilitator in preparing the supporting
regulations as well as an international dimension such as foreign
investment," Minister of Maritime Affairs and Fisheries Sarwono
Kusumaatmadja told The Jakarta Post on the sidelines of the
coordination meeting with Sumatra governors on Monday.

The regulations and guidelines are on sea territory and
boundaries as well as a spatial plan in a bid to avoid disputes
between regions in Sumatra, Sarwono said.

"The (Sumatra) governors will meet in the next few months to
discuss further arrangements. Basically we want to develop Sabang
Port as a free port with adequate services while at the same time
developing business along the west coast of Sumatra involving
several provinces from North Sumatra to Bengkulu," he said.

If Sabang Port booms, other ports and the coastal area along
Sumatra will also gain benefits from tourism, shipping and oil
pipeline transport within five to 10 years from now, the minister
added.

Aceh Governor Abdullah Puteh further said the free trade
status given to Weh island and the small neighboring islands
meant any foreign freighters would be allowed to unload without
paying customs duty.

"Now that Sabang's status as a free port has been restored (in
Dec. 22 last year), it is open to any foreign vessels."

"In this way we expect the port to become part of the economic
drive, benefiting all Acehnese in the future," Puteh said.

Sabang has a population of 24,000. Sixteen years ago the
population ballooned at some 70,000. But most have since moved to
more prospective areas such as Batam and Jakarta.

It takes 10 minutes to fly from Banda Aceh to Sabang which is
about 35 miles north of Banda Aceh. (edt)