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Papua

Article - April 4, 2012
Center for Development of Food, Fisheries, Energy, and National Mining
The development theme for the Papua-Kepulauan Maluku (PKM) Economic Corridor, ‘Center for Development of Food, Fisheries, Energy, and National Mining,’ will focus on five economic activities: food agriculture, copper, nickel, oil & gas, and fisheries.

With the lowest population density of all six corridors and a flat and fertile terrain, PKM is an ideal center for food and energy reserves. Here, a unique development program, dubbed Merauke Integrated Food and Energy Estate (MIFEE), is underway on a 1.2 million hectare area. MIFEE consists of large-scale cultivation of crops by adopting the concept of agriculture as an industrial system based on science and technology, capital, and modern organization and management. Ten clusters of Agricultural Production Centers (called KSPPs) will focus on different activities ranging from food crops, horticulture, animal husbandry, plantation, and aquaculture. The priority activities in MIFEE are sugar and sugar cane production and palm oil. Indonesia’s Master Plan outlines regulations and policies intended to gradually develop food estate land, educate the local community on the implementation and benefits of the MIFEE program, develop the necessary physical infrastructure to further MIFEE’s success, and to establish R&D for agricultural technology.

Another of PKM’s strengths can be found in copper and nickel. Papua alone is home to 45% of national copper reserves, while nickel is mainly found in Maluku. In 2014, Timika (Papua) is to become the site of Indonesia’s third copper smelter, which should send production into surplus, thus creating sufficient copper to meet domestic demands and for export. Thanks to the MP3EI’s strategy to simplify rules and regulations, the PKM corridor will not only focus on higher added value activities for nickel, it will also attract more investments in nickel mining and exploration.

As for hydrocarbons, PKM boasts large reserves of oil and gas. The Master Plan aims to optimize production by balancing the capacity of exports and imports, providing a healthy investment climate, fine-tune legislation and licensing, and encouraging the achievement of oil lifting. The MP3EI also dictates the establishment of an Oil Information Center and an Oil and Gas R&D Center at Sorong, West Papua.

The last of the economic activities, fisheries, holds interesting potential, especially in the Maluku Islands, where aquaculture offers tremendous development opportunities as the resources are not yet optimally exploited. Further infrastructure, namely in terms of fishing ports, marketing and power generation, envisioned by the Master Plan should help boost the industry.

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