Indonesia’s Natuna District, nestled in the Riau Archipelago, accelerates its effort to bolster its Local Revenue (PAD) by attracting investments, especially in quartz sand mining, which is driving positive economic ripples.
The Natuna District, a segment of the Riau Islands, is aggressively courting investments across sectors, aiming to notably elevate its PAD. A noteworthy segment grabbing investors’ attention currently is the extraction of quartz sand.
PT Indoprima Karisma Jaya (IKJ) initiated its quartz sand mining operations in Natuna a few months back. This endeavor has begun to bear financial fruit, with tax revenues pouring into the district’s coffers in tens of billions of rupiah.
Despite this promising start, Natuna’s Deputy Regent, Rodhial Huda, believes there’s room for more. A primary consideration on the table is the establishment of a specialized terminal owned by the Natuna District Government. This move is poised to eliminate the need for companies to construct individual ports, further bolstering district revenue.
Huda articulated that currently, revenues from mining primarily stem from mineral mining taxes. However, this specialized terminal would usher in additional revenue from docking services provided to vessels utilizing this terminal. “Without this, we risk minimal mineral tax revenues while miners reap considerable benefits,” Huda asserted.
Besides IKJ, several companies having secured permits are poised to commence operations in Natuna. With a specialized terminal in place, these firms can benefit from reduced infrastructure costs, contributing significantly to Natuna’s economy and PAD.
Natuna’s strategic developments signify Indonesia’s commitment to streamline industrial operations, potentially enhancing the country’s appeal for investments and tourism. Enhanced infrastructure can simplify business operations, potentially fostering cross-border collaborations.
The Natuna District in Indonesia’s Riau Archipelago is steering towards revenue enhancement by fostering quartz sand mining investments. A proposal to establish a district-owned terminal aims to aid mining operations, promising a win-win for the district and investors alike.
Source : Batam News (2023)
