Aceh Investment Development Zones

Aceh has 4 economic zones; Free Port and Free Trade Area (KPBPB) Sabang, Special Economic Zone (KEK) Arun Lhokseumawe, Aceh Industrial Estate (KIA) – Ladong and Kutaraja Fishery Port, each of these economic zones has its own charm with the offer of incentives and conveniences to customers. potential investors. The Aceh Government hopes that the presence of this economic area can become a new center of economic growth in Aceh.

1. Free Port and Free Trade Area (KPBPB) Sabang

The Sabang area is an area defined by Law no. 37/2000 which is separated from the customs area so that it is free from the trade system (excluding goods subject to quarantine rules and types of goods/services prohibited by law), imposition of import duties, value added tax, and sales tax on luxury goods and excise. Term of the Sabang Area: 70 years with the function of the area for business development in the sectors: tourism, ports, trade and fishery industries. The Sabang area is managed and developed by the Sabang Area Concession Agency.

Photo : CT-3 Port, Sabang

Interesting Facts :

  • Sabang, the western gateway of Indonesia, is an entry point for investment, goods and services from within and outside the country, with its location right on the route of international ships, it can become a service center for international ship traffic and this area is also positioned as a frontier region in global competition.
  • Sabang has a natural harbor with a depth of >20 meters.
  • Sabang is one of the natural tourist destinations, especially popular marine tourism in Indonesia.
  • Incentive facilities are available for business.
  • Available land with clear and clean status of 708 hectares and has been certified as many as 1,000 parcels are available for investors.

2. Special Economic Zone Arun – Lhokseumawe

The Arun Lhokseumawe SEZ is located in North Aceh Regency and Lhokseumawe City, Aceh and was established based on Government Regulation Number 5 of 2017. This SEZ relies on the geographical location of Aceh which is crossed by the Sea Lane of Communication (SLoC), namely the Malacca Strait and has a comparative advantage for become part of a global production network or global value chain. The SEZ which was formed from a consortium of several existing companies, namely PT Pertamina, PT Pupuk Iskandar Muda (PT PIM), PT Pelindo 1, and the Regional Development Company Aceh (PDPA) consists of 3 (three) areas, namely the Arun refinery complex, Dewantara sub-district and Jamuan Village which is the location of PT KKA’s factory. 

This SEZ focuses on several sectors, which are energy, petrochemicals, agroindustry supporting food security, logistics and the kraft paper-producing industry. From the energy sector (oil and gas) LNG regasification, LNG Hub/ Trading, LPG Hub/ Trading, Mini LNG Plant PLTG will be developed with the development of environmentally friendly power plants or clean energy solution providers. Logistics infrastructure was also developed to support inputs and outputs from the oil and gas, petrochemical and agro-industry industries, through the improvement of international standard port and dock infrastructure.

Photo : The development progress of NPK Fertilizer Factory -PT. Pupuk Iskandar Muda

Interesting Facts:

  • SEZ Arun Lhokseumawe has an area of 2,622.48 ha and 896.3 ha of vacant land (34.2%).
  • Strategic location and airport connectivity, the gateway to northwest Indonesia.
  • Incentive facilities are available for business.
  • Decent and pleasant work environment with world-class infrastructure.

3. Aceh Industrial Estate (KIA) Ladong, Aceh Besar

KIA Ladong is an industrial area which was inaugurated on December 20, 2018, supported by a strategic location to the City Center 22.8 Km, to Sultan Iskandar Muda Airport, 33 Km to Malahayati Harbor 11.6 Km and to Blang Bintang Toll Gate 11 Km.

With an area of 66 hectares that has been freed from the planned 250 hectares of development, it is hoped that KIA Ladong will become an industrial center and downstream center for Aceh’s leading commodities based on the halal industry, such as food, beverages and other products.

Currently, KIA Ladong already has permits: Estate Regulation, Industrial Estate Business Permit (IUKI), Environmental Permit and Location Permit.

Photo: The Aceh Industrial Estate, Ladong-Aceh Besar

Interesting Facts :

  1. Aceh Industrial Estate has an area of 67,6 Ha. Development Plan: 250 Ha, land status: management rights.
  2. Basic Rate of Land Rent Price of KIA Ladong = Rp. 5000/m2/year.

4. Kutaraja Fishery Port, Banda Aceh

One of the fishing ports that has a fairly large production of fish caught in Aceh which is included in the fisheries management area of WPP 572 with the status of being over exploited for pelagic fish and fully exploited for demersal fish. PPS Kutaraja is located in Banda Aceh City. It has a very strategic location, which is directly opposite the Malacca Strait and the Indian Ocean, that PPS Kutaraja is in a location close to potential fishing areas (DPI) and is in direct contact with international shipping lanes.

Photo: Kutaraja Fishery Port, Lampulo, Banda Aceh

Interesting Facts:

  • The Kutaraja Ocean Fishery port area has a land area of 52 hectares, only 10 hectares have been utilized with land status: Land Management Rights (HPL).
  • The tenant who became the pioneer of this area is PT. Aceh Lampulo Jaya Bahari (Fresh Fish Processing and Export Scale Storage), PT.Yakin Pasifik Tuna (Fresh Fish Processing and Export Scale Storage), PT. Nusantara Oilindo Pratama (SPDN), PT. Partner Power (Communication Facility)
  • Rent fee according to Aceh Qanun Number 2 of 2019: mature/solid land Rp. 10,000,- /sqm/year and raw land Rp. 5.000,-/sqm/year.