Special Economic Zone (SEZ) Arun Lhokseumawe

The SEZ Arun Lhokseumawe is located in North Aceh Regency, Lhokseumawe City—Aceh province, and was formed based on Government Regulation Number 5 of 2017. SEZ is based on the geographical location of Aceh which is crossed by the Sea Lane of Communication (SLOC), that is the Malacca Strait and has a comparative advantage to become part of a global production network or global value chain. The SEZ was formed from a consortium of several existing companies, such as PT Pertamina, PT Pupuk Iskandar Muda (PT PIM), PT Pelindo 1, and also the Aceh Regional Development Company (PDPA). The PDPA consists of 3 (three) areas: the Arun refinery complex, Dewantara District and Jamuan village, which is the exact location of PT KKA factory.

The SEZ Arun Lhokseumawe was inaugurated by the President of the Republic of Indonesia, Mr Joko Widodo on December 14, 2018. The SEZ focuses on

several sectors, such as energy, petrochemical, agroindustry
to support food security, logistics and kraft
paper producing industries. From the energy sector (oil
and gas), LNG regasification, LNG Hub / Trading, LPG
Hub / Trading, Mini LNG Plant PLTG will be developed
by developing environmentally friendly power plants or
providing clean energy solutions. Logistics infrastructure
is also being developed to support input and output from
the oil and gas; meanwhile, petrochemical and agroindustrial
industries will be developed through improving
international standard port and dock infrastructure.

Besides, the SEZ Arun Lhokseumawe is one of the
rich and productive aquatic ecosystems that supports
the development of the fisheries industry. With its
potential, the SEZ Arun Lhokseumawe will also become
a base for the agricultural sector with the support of
the superior commodities such as palm oil, coffee, cocoa, rubber, coconut, essential oils and others. The SEZ Arun Lhokseumawe will develop along with the regional development of several countries in the South Asia region through revitalizing the marine economy of the Maritime Silk Road. Hence, the SEZ Arun Lhokseumawe is located in the ASEAN and South Asian trade markets. With this potential and opportunities, the SEZ Arun Lhokseumawe is projected with an attractive investment of US $ 3.8 million and is launched to recruit as many as 40,000 workers by 2027.

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