The government is committed to exploring all the economic potential in West Papua to be fully utilised for the welfare of the people. One of the economic potentials being explored is the development of the Bintuni Bay Industrial Estate.
Bintuni Bay is the target of accelerated industrial development in West Papua. To realise the development of the industrial area, the government, through the Ministry of Industry, uses a public, private partnership (PPP) scheme with the term of the collaboration being for 23 years.
Following the 2020-2024 National Medium Term Development Plan, Bintuni Bay is one of the priority industrial areas with national strategic project status.
The government admits that there are many challenges in regional development. The government must overcome these obstacles to accelerate the growth of industrial areas in Bintuni Bay.
The Ministry of Industry noted at least two challenges faced by the government, i.e. the land acquisition process and the certainty of gas allocation.
For the land acquisition process, the Ministry of Industry handed over the task to the local government as a form of its commitment to developing the local area.
The Ministry of Industry cooperates with the regional government and expects support from relevant ministries and institutions to build connectivity at the construction site of the Bintuni Bay industrial area.
The infrastructure support includes the construction of ports, roads and bridges.
The infrastructure development is to increase regional competitiveness. This support manifests the government’s real work to create a better life for the West Papua people.
Gas and Strategic Industrial Area
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The Ministry of Industry reports that Bintuni Bay will become a strategic gas and industrial area in Eastern Indonesia.
Various preparations have also been made, including conducting academic studies and environmental impact analysis and cooperating with related parties such as the Ministry of Energy and Mineral Resources.
Meanwhile, the Ministry of Energy has confirmed the certainty of gas allocation of 90 mmscfd until 2035 for the raw material for the methanol industry in the Bintuni Bay Industrial Estate.
However, the Ministry reminded the importance of ensuring gas supply guarantees for the next 20 years so that this project will attract domestic and foreign investors.
The Ministry of Industry and the Ministry of Energy have agreed to sign an MoU on support for guaranteed natural gas supply to implement PPP in the Bintuni Bay Industrial Estate.
In addition to the readiness of gas supply, the Ministry of Industry is also pushing Bintuni Bay to become a centre for the urea and methanol industry.
Fertiliser is one of the strategic industries needed by farmers in West Papua. With fertilisers in the Bintuni Bay area, people can get fertiliser at competitive prices.
Apart from fertilisers, there is also methanol production which will be exported to several countries such as Australia, Japan, and South Korea.
The Ministry of Industry reported that industrial estates in West Papua would take USD 2.3 billion.
In detail, the development of the fertiliser industry costs USD 1.3 billion and the methanol industry around USD 1 billion.
The government is optimistic that the Bintuni Bay industrial area will attract investors to support the acceleration of development in the Eastern Indonesia region.
The Ministry of Industry asks for the cooperation of local governments to contribute to the success of the project. This collaboration is part of the synergy between the central and local governments in developing Bintuni Bay.
The local government also needs to actively discuss the benefits of the existence of the Bintuni Bay industrial area with indigenous peoples. They are also part of the development capital and need to be involved in every development process in their territory.
