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Sabtu, 18 Mei 2024

Minister Bahlil Highlights Three Key Priorities for Investors in the Merauke Sugar Self-Sufficiency Project

Merauke, May 18, 2024 – Minister of Investment/Head of the Ministry of Investment and Downstream Industry/BKPM, Bahlil Lahadalia, reminded investors of their responsibilities in accelerating the sugar and bioethanol self-sufficiency project in Merauke, South Papua. Minister Bahlil conveyed this message following an aerial inspection of the 2-million-hectare site designated for sugar and bioethanol production facilities in South Papua on Friday morning, May 17, 2024.

“There are three mandatory requirements: First, the rights of the local community must not be neglected. Second, the core-plasma partnership must be implemented. Third, local entrepreneurs must be involved. This includes catering services and local labor—don’t bring in workers from outside for everything,” Bahlil emphasized to reporters in Merauke after the aerial survey of the sugar and ethanol self-sufficiency project site.


In addition to these three priorities, Minister Bahlil stressed the importance of prioritizing local workforce involvement. Without this, the benefits of the investment would not be felt by the local community.


“Local workforce absorption is non-negotiable. If it’s not implemented, I will take action against the companies operating in Merauke,” Bahlil firmly stated.


However, Bahlil also reminded local entrepreneurs to maintain professionalism when collaborating with investors. He cautioned against subpar performance that could jeopardize the project.


“But you [local entrepreneurs] must also be ready. Don’t force investors to work with local businesses if you don’t deliver quality work. That would only bankrupt the company,” he added.


Bahlil also warned against equating this private-sector project with government-funded projects under regional budgets (APBD).


“Don’t treat this like an APBD project. In APBD projects, if you don’t get the contract, you complain, and even if you work a little, it’s considered fine—that’s not acceptable. For this project, you must be professional. If you don’t meet the standards, you’ll be replaced tomorrow. This is a competition,” Bahlil asserted.


As previously reported, Minister Bahlil conducted a working visit to Merauke to directly observe the progress of investments in sugar and bioethanol production facilities. During this visit, he expressed confidence in the project’s success, particularly after witnessing the seriousness of the companies conducting research and development, especially in identifying seed varieties suited to the soil and climate in Merauke.


This visit marked Bahlil’s first trip to Merauke following his appointment by President Joko Widodo as Chair of the Task Force for Accelerating Sugar and Bioethanol Self-Sufficiency in Merauke Regency, South Papua Province, on April 19, 2024.


Established under Presidential Decree No. 15 of 2024, the Task Force aims to expedite the implementation of integrated plantation investments with sugar, bioethanol, and biomass power industries in Merauke Regency, South Papua Province.


For further information, please contact:

Ricky Kusmayadi

Head of Communications and Information Services Bureau

Ministry of Investment and Downstream Industry/BKPM

E-mail: rickykusmayadi@bkpm.go.id

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