Finance Minister Purbaya Follows Up on KEK Galang Batang Permit Obstacles

This marks the beginning of the change in function and release of forest areas for the development of the Galang Batang SEZ, which has not been followed up since it was proposed in 2022. Jakarta (ANTARA) - Finance Minister Purbaya Yudhi Sadewa is following up on the permitting obstacles faced by PT GBKEK Industri Park, the manager of the Galang Batang Special Economic Zone (SEZ). “This is the beginning of the change in function and release of forest areas for the development of the Galang Batang SEZ, which has not been followed up since it was proposed in 2022,” said Purbaya during the Debottlenecking Channel Complaint Hearing at the Ministry of Finance office in Jakarta on Thursday. The Galang Batang SEZ is planned to be developed as a centre for the mineral processing industry from mining results (backfill) and its derivatives, both from refineries and smelters. The initial investment value of this project reaches Rp36.25 trillion until 2027. After development, the construction of the Galang Batang SEZ is said to be able to absorb 110,000 workers with an investment value of Rp120.5 trillion up to 2027. However, the investment for the development of the Galang Batang SEZ is experiencing delays due to the lack of follow-up on the Integrated Team’s recommendations by the Ministry of Forestry. PT GBKEK Industri Park submitted an application for approval to use forest areas in the Masiran village area covering approximately 80.98 hectares for port construction. The company claims to have obtained approval recommendations from the Riau Islands Provincial Government, but currently, there has been no decision from the Ministry of Forestry. Lastly, PT GBKEK Industri Park sent letter No. 112/GBKEK/IX/2025 in September 2025 regarding the application for borrowing/use of forest areas to the Ministry of Forestry, but has not received a response. To address these obstacles, Purbaya has asked the Ministry of Forestry, as the relevant permitting authority, to follow up on the issue within a two-week period. As a note, the government has opened the Task Force (Satgas) Channel for Accelerating Strategic Government Programmes (P2SP) to accommodate complaints of obstacles experienced by the business world. That channel can be accessed on the website https://lapor.satgasp2sp.go.id 24 hours a day. These efforts are carried out to provide certainty to investors regarding the security of investing in Indonesia.