German Company To Build Industrial Plant in West Papua


Jakarta, Jubi/Antara – Ferrostaal, an industrial service provider from Germany, will likely build an industrial plant in West Papua province and will seek the Indonesian government’s approval for supplying gas.

“We expect to get the approval by mid-year,” Ferrostaal CEO Klaus Lesker said after meeting with Vice-President Jusuf Kalla here on Tuesday (3/3/2015).

According to him, the plant will be operating in the petrochemicals sector, which will require pure gas supply as the source of energy.

According to Lesker, the Vice-President has promised to help the company get gas supply. The investment is expected to create new employment opportunities and increase economic activities in West Papua.

Previously, the Investment Coordinating Board (BKPM) set a high investment target of Rp265 trillion in Papua and West Papua for the next five years.


This target is an increase from the total investment of Rp67 trillion made in the country’s most backward regions during the previous five years that ended in 2014, head of BKPM Franky Sibaranai said recently.

He remarked that the investment target for the two provinces has been set at Rp33.2 trillion in 2015.

Moreover, Vice-President Jusuf Kalla recently revealed that the government was looking to reform the country’s bureaucracy and processes involved in issuing investment permits by implementing the Integrated One-Door Licensing Service (PTSP) program of the BKPM.

“We have understood that our administrative processes have weaknesses and that our permit procedures for investments are complex. However, the government is trying to rectify these problems,” Kalla emphasized.

According to Kalla, President Joko Widodo launched the one-stop service (OSS) program to shorten and expedite permit processes for starting investments in Indonesia.

“We often hear that potential investors complain about our complex administrative processes. We hope the OSS program will resolve all issues related to permit procedures,” Kalla remarked while addressing the Japanese Nikkei Forum.

According to the BKPM, the implementation of the OSS is dedicated to provide easy, fast, precise, accurate, transparent, and accountable licensing and non-licensing services. (*)

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