Government decides to restore Sabang's status as free port

SABANG, Aceh (JP): The government, represented by Vice President Megawati Soekarnoputri, carried out its promise to declare Sabang a free port and Weh island a free trade zone on Friday.

The Vice President, accompanied by Minister of Transportation and Telecommunications Agum Gumelar and Minister of Settlement and Regional Infrastructure Erna Witoelar, also officiated the launch of construction of a new pier at the port and a new ferry serving Sabang and Malahayati island, some 36 kilometers east of Banda Aceh.

It takes 10 minutes to fly from Banda Aceh to Sabang, which is located on Weh island, about 35 miles north of Banda Aceh.

The arrival of Megawati ended local skepticism about the government's seriousness in reinstating Sabang Port, which lost its status in 1984. Sabang was a free port in the past.

The House of Representatives passed a bill on Sabang Port several months ago.

Moh. Jaffar Ahmad, a 40-year-old local, said people's doubts disappeared as the plane carrying Megawati landed at the airport at 3 p.m. local time.

In her speech, Megawati said: "The government is carrying out concrete steps to help the Acehnese in a bid to mend relations between Aceh and Jakarta, which have been strained lately. The development of Sabang Port was one of my father's dreams, and I want to help make it come true."

At least 1,000 people jostled at the barbed wire fence where the ceremony took place, mostly to see the eldest daughter of late president Sukarno.

Aceh Governor Abdullah Puteh, who accompanied Megawati, 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, it is open to any foreign vessels.

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

Sabang has a population of 24,000. Sixteen years ago 46,000 more people lived there, but many moved on to Batam, Jakarta and other cities in search of a better life.

The pier

Samsul Bahri, the director of PT Pelindo I which manages the port, said the new pier would cost Rp 16.5 billion, which was allotted from the 1999-2000 state budget. "The new pier will be 180 meters long and 12 meters wide. It will be constructed to accommodate a ship of 10,000 tons.

"The project is scheduled to be completed in January 2002."

The head of the Aceh office of trade and industry, Moh. Jamil, said trade at Sabang Port would be a lucrative business.

"We must grab the opportunity. There are about 200 foreign cargo ships passing Sabang every day. Crew members have expressed a willingness to stop at Sabang, but they could not do that before.

"Now that Sabang Port has been declared a free port, there are many businesses which can help boost the local economy," Jamil said, adding that a mineral water, crude palm oil or plastic factory would be welcome.

"Korean Ssang Yong has agreed to invest in an oil refinery," Jamil said. (50/sur)