Palembang to be developed into key industrial area

id industrial area, Special Economic Zone, Tanjung Api-Api, Banyuasin, Permana, Gandus Industrial Area

Palembang to be developed into key industrial area

Permana (Antarasumsel.com/Dolly Rosana)

Palembang, S. Sumatra (Antarasumsel.com) - South Sumatra province will prioritize the development of Palembang city into an industrial area as a Special Economic Zone is being established in Tanjung Api-Api, Banyuasin, Permana, head of the province`s Trade Office, said.

The city administration is working to establish the 300-hectare Gandus Industrial Area, he said on Monday.

Besides Palembang, the Trade Office is planning to develop five other districts/cities - Muaraenim, Penukal Abab Lematang Ilir, Lubuklinggau, Banyuasin and Ogan Komering Ilir - as industrial zones. "The industrial areas are expected to process raw materials from rubber, automotive and other industries into ready-to-use products," he said.

Permana said the Palembang city administration plans to connect Gandus Industrial Area to the Kayuagung-Palembang-Betung Highway. The highway is expected to give Gandus Industrial Area a boost, said Palembang`s Mayor Harnojoyo.

The city administration is focusing on developing two industrial zones, Gandus, which is becoming a new city project, and Keramasan. "Currently, we are focusing on Gandus. The administration is working to provide access to this area, which will house factories, warehouses, offices and employee housing, among other things," he said.

The establishment of industrial areas is expected to aid Palembang`s economic growth, which has been on the upswing since it hosted the SEA Games in 2011.

This year will see a rise in investment in Palembang as the city is to host Asian Games in 2018.

Based on data from the Investment Agency of Palembang, the city`s investment realization touched Rp4.1 trillion in November 2016, exceeding the annual target by 200 per cent.