Pertamina Supports the Arun Lhokseumawe SEZ Development Towards a Green Industrial Area

Lhokseumawe, February 10, 2023 - SOEs synergy supports the Arun Lhokseumawe Special Economic Zone (SEZ) development to become a Green Energy Zone. This cross-SOE collaboration was realized through the Equity Investment Head of Agreement signing at PT Patriot as the Builder and Management Business Entity (BUPP) of Arun Lhokseumawe SEZ where PT Pertamina (Persero) and other SOEs, namely PT Pupuk Iskandar Muda, PT Pelindo, and PT Pembangunan Aceh took this strategic role.

Directly witnessed by the President of the Republic of Indonesia, Joko Widodo, and the Minister of SOE, Erick Thohir, the agreement was signed by the President Director of PT Pertamina (Persero), Nicke Widyawati; the President Director of PT Pupuk Iskandar Muda, Budi Santoso Syarif; the President Director of PT Pelindo, Arif Suhartono; and the President Director of PT Pembangunan Aceh, Ali Mulyagusdin. The signing was carried out today (10/2) at the North Aceh Chemical NPK Factory inauguration in Lhokseumawe, Aceh Province.

Arun Lhokseumawe SEZ, with an area of 2,600 hectares, will focus on the energy, petrochemical, agro-industries supporting food security, logistics, and kraft paper-producing industries. Moreover, this area also has the potential in developing the fishing and agricultural industry with superior commodities support, such as palm oil, coffee, cocoa, rubber, coconut, essential oils, and others.

SEZ Arun Lhokseumawe, with its very strategic location, has potential to develop in the international trade market, especially ASEAN. Thus, building Arun Lhokseumawe SEZ into a green industrial area is very important. It was conveyed by the President of the Republic of Indonesia, Joko Widodo, in his speech at the inauguration ceremony.

"We hope the Arun Lhokseumawe SEZ area will become a green industrial area. Investors will start coming here, and we hope this will affect Aceh province's GRDP. It is estimated that the Ministry of SOE can influence 7% of GRDP in Aceh," said Jokowi.

Following Jokowi, SOE Minister Erick Thohir said that development continues to be encouraged in Aceh Province. It is to ensure that Aceh becomes an energy source, as well as improve national food.

"Under the support of the President, we are continuing to develop. We care about how investing in Aceh is a continuation of changes that make Aceh people prosperous," Erick explained.

Erick further explained that to ensure the Arun Lhokseumawe SEZ development could run optimally, a consortium was formed between SOEs.

Each SOE has tasks, such as Pertamina, which will develop the energy sector (oil and gas) along with supporting infrastructure facilities, PT Pupuk Iskandar Muda with PT Pupuk Indonesia Group will develop an environmentally friendly Petrochemical industrial cluster. Meanwhile, PT Pelindo I will handle ports and logistics, and PT Pembangunan Aceh will develop agro-industries to support food security.

Pertamina will later assign one of its affiliates in the Gas Sub Holding, PT Perta Arun Gas (PAG), to participate in the capital in the Arun Lhokseumawe SEZ. PAG will focus on providing clean energy for Arun Lhokseumawe SEZ through the LNG Regasification facility and LNG Hub. In 2022, PAG has supplied 52,559 BBTU for the PLN power plant's needs in Aceh and North Sumatera, supplying gas for the fertilizer factory owned by Pupuk Iskandar Muda and the industry in North Sumatera.

The President Director of PT Pertamina (Persero), Nicke Widyawati, said that it is hoped that this synergy between SOEs will be a good start in supporting the Arun Lhokseumawe SEZ development realization acceleration towards a green industrial area. LNG utilization will provide certainty of clean energy supply, which also follows efforts to achieve Net Zero Emissions by 2060.

"Pertamina as an energy SOE is committed to providing energy to all regions of Indonesia. With the LNG supply, it is hoped that it can support the Arun Lhokseumawe SEZ smooth operation, which will improve Aceh Province's economy, as well as providing jobs for Acehnese children," explained Nicke.

In the future, PAG will develop other LNG businesses that can support efforts to build energy security in the Aceh and Sumatera regions, as well as play an active role in energy transition efforts by providing clean energy solution providers.**