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Consortium Founded to Manage Sorong SEZ

Malamoi Olom Wonok, Huahe Management Indonesia, and Sino Consultant Investment Indonesia have formed a consortium to manage the Sorong Special Economic Zone (SEZ). The signing ceremony took place at the Aimas Hotel and Convention Centre (ACC) in Sorong Regency, Southwest Papua Province on May 28, 2024.

Huahe Management Indonesia Director Xu Hong Xia expressed gratitude for support from the central government, the Southwest Papua provincial government, the Sorong Regency government, local community leaders, religious figures, and all stakeholders in Sorong.

The consortium, Sinagi Olom Fagu, aims to attract investors to Sorong SEZ, manage facilities and infrastructure, create a favorable investment environment, and maintain good relationships with the government, local communities, and the environment.

“Sorong SEZ will introduce the world's most advanced nickel processing technology, the Oxygen Enriched Side Blow Furnace (OESBF),” he added.

This technology has three main advantages: more energy-efficient than its alternatives, reduces coal usage by substituting natural gas or hydrogen, and produces stable waste that can be reused in construction.

“The nickel processing plant will produce high-grade nickel matte with an annual production capacity of 160,000 tons, targeting export markets in the United States, Europe, and other regions,” Xu explained.

Sinagi Olom Fagu will also will ensure that investors adhere to good Environmental, Social, and Governance (ESG) principles in support of the government's initiative of building environmentally friendly nickel processing industries

“This will establish sustainable production standards that do not harm the environment,” he stated.

Investing in Sorong SEZ is expected to increase tax revenue, create jobs, form partnerships with local companies, preserve the environment, and accelerate the development of green energy-based electric vehicle industries in Indonesia.

“The consortium hopes to begin construction of the nickel and steel processing plants in Sorong SEZ after June. However, challenges such as land acquisition, clean energy supply, raw material sourcing, and port adequacy need to be addressed. We seek assistance and cooperation from all stakeholders involved,” Xu concluded.

Sino Consultant Investment Indonesia Director Adriana Imelda Daat explained that the signing came after a lengthy process of nearly two years. The groundbreaking for the nickel and steel smelter plant in Sorong SEZ will occur soon afterwards.

“This consortium is crucial as it involves three companies, including investors, due to limited funding from the local government to manage the SEZ,” she clarified.

Although the Sorong SEZ port requires further development, she said that the Petrosea Port could be used temporarily for logistics in the meantime.

The groundbreaking ceremony will be attended by either President Joko Widodo or President-elect Prabowo Subianto.

“We have received strong support from the central, provincial, and Sorong Regency governments,” she concluded.

The signing event was attended by House of Representatives Commission X member Robert Joppy Kardinal, the Sorong Regency Regional House of Representatives Speaker Habel Yadanfle, and representatives from the Sorong Regency and Southwest Papua regency and provincial governments.

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