Aceh Governor Asks Hashim to Help Develop KEK Arun for Oil and Gas Downstream Processing

Aceh Governor Muzakir Manaf, also known as Mualem, has urged Special Envoy for Energy and Climate Change, Hashim Djojohadikusumo, to assist in developing the Arun Special Economic Zone (KEK) in Lhokseumawe. The governor seeks to bolster investment and promote downstream processing of oil and gas resources.

Mualem highlighted the importance of developing industries that add value to the gas produced from the Andaman Block, partly managed by UAE-based Mubadala Energy. While respecting the central government's decisions, Aceh insists that natural resource management must maximize benefits for the local community, the region's producer.

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The principle is mutual satisfaction. Companies get profit, the central government gets revenue, the Aceh government profits, and there is an economic multiplier effect that drives the welfare of the Aceh people.

Hilirisasi, or downstream processing, is seen as a strategic move to create added value, expand employment opportunities, foster gas-based industries, and enhance Aceh's economic competitiveness sustainably. Both parties agreed that this initiative aims to strengthen synergy between the central government and Aceh, optimizing the province's energy potential through sustainable investment and development focused on community welfare.

The Aceh government is committed to fostering a favorable investment climate, offering certainty and simplifying investment processes, including expedited permit services, to attract investors.

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Aceh provides certainty for investors. We offer ease in the investment process, including simplification and acceleration of licensing services.