Deputy Prime Minister Hon. John Rosso led a small Papua New Guinea delegation on Monday, August 19, 2024, to a significant meeting with the management of the Java Integrated Industrial and Ports Estate (JIIPE) Special Economic Zone in Gresik, Surabaya, Indonesia. This visit is part of a broader series of engagements aimed at attracting trade and investment into Papua New Guinea by Indonesian companies. The initiative follows recent high-level discussions between Indonesian President H.E. Joko Widodo and PNG Prime Minister Hon. James Marape.
Indonesia, PNG’s closest neighbour, is one of the emerging market economies in the world and the largest in Southeast Asia. As an upper-middle income country and member of the G20, Indonesia is classified as a newly industrialised country. Indonesia nominal GDP reached US$1.371 trillion) in 2023, it is the 16th largest economy in the world by nominal GDP and the 7th largest in terms of GDP (PPP).
The PNG delegation included International Trade and Investment Minister Hon. Richard Maru, Labor Minister Hon. Kessy Sawang, Madang Governor Hon. Ramsey Pariwa, Secretary for International Trade and Investment Jacinta Warakai-Manua, officials from State-Owned Enterprises, PNG Ambassador to Indonesia H.E. Simon Namis, and embassy staff.
During the visit, the delegation received an in-depth briefing from JIIPE management, along with representatives from the mining company PT Freeport Indonesia. The briefing provided insights into the operations of this flagship Indonesian project, followed by a tour of the SEZ.
JIIPE was designated as an SEZ by President Joko Widodo in 2021, marking it as a national strategic project designed to meet industrial needs. The SEZ boasts superior connectivity through multimodal transportation, a connected deep seaport, a one-stop complete utility service, environmental permits, and expedited construction permits. These attributes, along with the availability of essential utilities like power plants, industrial freshwater, waste management, gas supply, and telecommunication networks, have made JIIPE a major investment destination in Indonesia. The SEZ currently hosts over 17 tenants, including Bank of Indonesia and PT Freeport Indonesia.
Deputy Prime Minister Rosso emphasised the significance of the meeting, particularly in the context of PNG's own SEZ development efforts all over the country, including in Madang for fisheries and nickel, and in Lae for the Wafi-Golpu Mine. He remarked on the relevance of Indonesia's experience to PNG's ambitions.
“You (Indonesia) have already gone down that path (SEZ development), learned from your mistakes, and you will be able to teach us. The SEZ here replicates what we are trying to understand and achieve at two of our ports (Madang and Lae),” Deputy Prime Minister Rosso said.
“It has a lot of similarities to two of the SEZs we are trying to build in PNG: One in Madang where we have a nickel mine, and my home city of Lae, which, like Surabaya, is the second-largest city and industrial hub of PNG.”
Minister Maru, who oversees SEZ development in PNG, highlighted the alignment between Indonesia's SEZ experience and PNG's goals for SEZ development.
“In Madang, there is already land and a deep-water port available, which makes it the ideal location for development of a special economic zone for fisheries and other industries,” Minister Maru said.
“We also want to develop a smelter in Lae so that gold and other minerals from Wafi-Golpu, and other mines throughout the country, can be processed at this SEZ. It can also create thousands of new jobs,” Minister Maru added.
“The Indonesia experience is an eye-opener for PNG on what can be achieved, and best of all, they are willing to help us.”
