Sabang Assessed as Potential Industrial Hub Like Singapore, Here Are Its Advantages

The development of Sabang is stated as one of the key elements to increase state revenue and reduce fuel oil imports, while also improving the welfare of the local community. However, to ensure Sabang’s development can proceed, the Aceh regional government must guarantee adequate infrastructure, ecosystem, human resources, and energy supply to support all economic activities. Chairman of the Indonesian Native Entrepreneurs Association (Asprindo), Jose Rizal, stated that geopolitically, Sabang’s position is further “forward” than Singapore for the Malacca Strait. “But location advantage alone is not enough if the infrastructure and ecosystem are not yet in place. Including ensuring sufficient energy to support existing infrastructure,” Jose told reporters. He explained that geographically, Sabang has many advantages over Singapore. Such as Sabang’s position right at the end of Indonesia and directly facing the Indian Ocean. In contrast to Singapore, which is further inside the strait, about 50 kilometres. Additionally, Sabang’s waters have a depth of 20 to 40 metres, allowing 300,000 DWT ships to dock without needing regular dredging. “However, Singapore has stable regulations, which are needed by business actors, providing legal certainty and low risk. This is what Sabang does not yet have. In addition, Sabang does not yet have a financial industry, port support facilities, and human resources,” he said. Jose emphasised that Sabang does not need to imitate Singapore to develop into one of the world’s scale industrial hubs. But what needs to be done is to ensure that what Singapore does not provide is available in Sabang. “Sabang must specialise. Do not compete with Singapore head-to-head. Take a market niche that Singapore does not have. Do not dream of becoming Singapore, but become a complement to Singapore. The target is, in the next 5 or 10 years, Sabang should be able to capture around 20 percent of Singapore’s traffic,” he said. For example, Sabang could become a location for bunkering and fishing vessel logistics. According to data, at least 3,000 foreign fishing vessels pass through the Malacca Strait. With Singapore’s high prices and strictness, Sabang could become their “petrol station” and market. Alternatively, Sabang could become a halal cruise ship hub, where Middle Eastern tourists want cruise ships that implement non-alcohol policies, halal food, and availability of mosques.