Jakarta – The development project for a cement plant in Timika, Papua, valued to be Rp.2.7 trillion is projected to be realized immediately during the coming year.
The Governor of Papua, Barnabas Suebu SH yesterday after an audience with President Susilo Bambang Yudhoyono at the Presidential Offices said: “The feasibility study is completed what remains now is the realization of the project”.
Previously in the Papua Investment day forum Barnabas said that the one ton capacity cement plant is intended to fulfill the demand in the Papua region that all this time is supplying it from outside the island, mainly South Sulawesi.
The governor added that the project development is the collaboration with PT Freeport who is prepared to pitch in Rp.1 trillion in funds.
The cement plant will subsequently utilize Freeport tailing coming from its gold and copper production processing waste.
He disclosed that an MoU was already signed between the Papua provincial administration and Freeport for this purpose.
Another investment reported by Barnabas to the president is a hydropower plant with an investment value of Rp.5 trillion. “The feasibility study for this project is in the final stages.”
He stated that the infrastructure development, the improved administration’s good governance, the stable security situation and a number of incentives issued are all factors to interest investors to invest their capital in Papua.
Based on Bisnis Indonesia’s tracing there are at least two South Korean investors interested to build a new cement plant in Papua with capacity of up to three million tons per year and a total investment of US$350 million.
One of the South Korean investors is PT Semo Building who will start a joint venture with PT Segara Sumber Optima.
For the first year the schedule is building a one million ton capacity cement plant. During the second year the capacity will be increased to three million tons with a total investment of US$350 million.
Currently, future investors are finalizing their project feasibility studies covering among others identifying raw material and support material potential. Energy sources, location, infrastructure readiness, marketing and the environmental aspect.
By Ratna Ariyanti
Source: Bisnis Indonesia News, Wednesday, November 04, 2009