2024A PAPUA NEW GUINEA delegation recently visited the Java Integrat-ed Industrial and Ports Estate (JIIPE) Special Economic Zone (SEZ) in Gresik, Surabaya, Indonesia, to gain valuable insights into SEZ development.
The visit, which was part of a broader initiative to enhance trade and investment ties between the two nations, followed high-level discussions between Indonesian President Joko Widodo and PNG Prime Minister James Marape.
Indonesia, PNG’s closest neighbor, stands as a major emerging market economy and the largest in Southeast Asia. Classified as an upper-middle-income country and a newly industrialized nation, Indonesia’s nominal GDP reached approximately US$1.371 trillion, making it one of the top economies globally in terms of nominal GDP and GDP (PPP).
The Papua New Guinea delegation, led by Deputy Prime Minister John Rosso, included International Trade and Investment Minister Richard Maru, Labor Minister Kessy Sawang, Madang Governor Ramsey Pariwa, Secretary for International Trade and Investment Jacinta Warakai-Manua, officials from State-Owned Enterprises, PNG Ambassador to Indonesia Simon Na-mis, and embassy staff.
During the visit, the delegation received an in-depth briefing from JIIPE management and representatives from PT Freeport Indonesia. The session provided a compre-hensive overview of the SEZ’s operations, followed by a tour of the facilities.
Designated as an SEZ by President Widodo in 2021, JIIPE is a key national project de-signed to meet industrial needs. It features advanced infrastructure, including multi-modal transportation options, a deep-sea port, complete utility services, and stream-lined environmental and construction per-mitting.
The SEZ’s extensive utilities, such as power plants, industrial freshwater, waste management systems, gas supply, and telecommunications, have positioned it as a major investment destination in Indonesia. JIIPE currently hosts over 17 tenants, including prominent entities like Bank of Indonesia and PT Freeport Indonesia. Deputy Prime Minister Rosso emphasized the significance of the visit for PNG’s SEZ development efforts, particularly in Madang and Lae. He noted that Indonesia’s successful SEZ model could offer valuable guidance. “Indonesia’s SEZ experience is highly relevant to our development projects in Madang and Lae,” Rosso remarked. “The JIIPE SEZ has features similar to those we aim to implement in PNG.”
Minister Maru, responsible for SEZ development in PNG, highlighted how Indone-sia’s experience aligns with PNG’s goals. “In Madang, we have suitable land and a deep-water port for a fisheries and indus-trial SEZ.
We also plan to establish a smelter in Lae for processing minerals, which will create thousands of jobs,” Maru explained. “Indo-nesia’s insights are crucial in demonstrating what can be achieved and offering a model for our own projects.”
The visit has provided the Papua New Guinea delegation with practical knowledge and inspiration for advancing their SEZ development initiatives, underscoring the potential benefits of leveraging Indo-nesia’s successful SEZ framework.
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