Indonesian Political, Business & Finance News

Sabang may be turned into petro center

| Source: JP

Sabang may be turned into petro center

JAKARTA (JP): The Agency for Assessment and Application of
Technology (BPPT) and the Aceh provincial administration are
examining the possibility of developing a petrochemical center in
Sabang, north Sumatra.

BPPT Deputy Head for Natural Resources Development Indroyono
Soesilo said yesterday establishing the petrochemical center in
Sabang would be part of the government's program to develop the
town as a gateway of the Indonesia-Malaysia-Thailand Growth
Triangle.

The subregional economic cooperation covers several provinces
in Sumatra, western parts of Malaysia and the southern part of
Thailand.

Indroyono said Sabang, part of Aceh province, was suitable for
the development of a petrochemical center due to its closeness to
petrochemical feedstock producers and petrochemical markets.

Sabang is close to the Arun liquefied natural gas (LNG) plant,
also located in Aceh, and it is the closest port in Indonesia to
the oil-producing Arab countries.

Aside from the petrochemical industry, BPPT would also examine
plans to develop other industries in the area, including tourism
and marine fishery, Indroyono said.

He said in line with the assessment, BPPT and the Aceh
Administration would organize a two-day science and technology
seminar titled "Science and Technology to Support the Development
of and the Realization of Sabang Municipality's Potential" from
Sept. 23 to Sept. 24 in Sabang.

Scheduled to be opened by BPPT's chairman/State Minister for
Research and Technology B.J. Habibie, the seminar will be
attended by 500 participants, including those from marine-related
industries.

It will also discuss strategies to develop Sabang.

Sabang has a population of 26,000 people, mostly living on
fishery and agriculture. Its tourist industry, centered in Iboh
and Gapang districts, sees about 30 foreign tourists each day,
mostly from Europe.

The area's economy kept dwindling after the government revoked
its "free port" status in 1985. (jsk)

View JSON | Print