JAKARTA, Indonesia, Sept. 8, 2021 /PRNewswire/ — Indonesia’s newest Special Economic Zone (SEZ), Java Integrated Industrial and Port Estate (JIIPE), announced it is poised to reach its target of $17 billion in investment and create 20,000 new jobs, as it confirms new major investor Freeport Indonesia (PTFI).
The 3,000-hectare industrial hub, owned by PT AKR Corporindo Tbk (IDX: AKRA), signed on August 27 a long-term 80-year lease agreement with Freeport Indonesia (PTFI), one of Indonesia’s largest mining companies to develop a new copper smelter complex, spanning 100 hectares at an estimated cost of $3 billion.
The agreement for construction and use of BMS infrastructure for 40 years was signed on September 3rd 2021.
“The smelter project requires extensive use of port facilities, laydown area during construction, reliable supply of utilities, as well as ease of licensing and administration. This is something that SEZ JIIPE can offer to all our investing tenants,” said Haryanto Adikoesoemo, AKR Corporindo’s President Director.
JIIPE’s integrated, multifaceted infrastructures are one of its major assets, designed to simplify operational processes for industries. The hub, strategically positioned in East Java, offers access to the region’s deepest ports (-16 LWS) and direct toll access to international airports. Making the domestic and international transport of goods cost-efficient, especially across archipelagic Eastern Indonesia.
JIIPE’s SEZ designation allows local and international companies to benefit from a wide array of fiscal and regulatory exemptions and facilitations. The estate’s Direct Construction Service (KLIK) provides investors one-window facility to support them to start construction and manufacturing immediately
These comprehensive investment incentives have proven an encouraging draw to major companies. To date, JIIPE has achieved investment of $3.5 billion from 16 tenants, including PTFI.
For more information on JIIPE, please visit https://www.jiipe.com/en
JIIPE is a public-private project between PT AKR Corporindo Tbk and Pelabuhan Indonesia III. Located in Gresik, East Java province, the 3,000ha site is the country’s first integrated industrial city and port development project.