Special Economic Zone Designation
The SEZ Padang extension operates under Indonesia's national SEZ regulations, offering fiscal incentives including corporate income tax reductions, import duty exemptions, and streamlined permitting for qualifying industries. This framework materially reduces operating costs and accelerates project timelines for zone tenants.
Purpose-Built for Integration
The site is organised into functional districts connected by shared energy, water, and logistics infrastructure. Proximity to geothermal resources provides baseload renewable power at US$0.04–0.06 per kilowatt-hour — roughly 50 per cent below grid tariffs. Coastal access supports desalination and maritime logistics.
Industrial Activity Where It Belongs
By locating all industrial operations on the Sumatran mainland, the programme ensures that manufacturing, processing, and heavy infrastructure do not encroach upon the Mentawai islands. The strait provides a natural buffer, separating economic activity from the ecosystems and communities it funds and protects.
The Industrial Engine
Geothermal power, SEZ incentives, and integrated industrial districts — the mainland infrastructure that funds permanent island conservation.