REPUBLIKA.CO.ID, BANDA ACEH - The government planned to revive PT Kertas Kraf Aceh and PT ASEAN Aceh Fertilizer to boost the region`s economy, Minister of State Enterprise Dahlan Iskan said on Saturday. He made the statement during a meeting with Aceh regional government officials and industrial leaders.

Iskan pointed out that several issues had been discussed in the meeting, including efforts to revive the paper company PT Kertas Kraft Aceh by converting it into a power plant. Initially, the electricity produced by the company will be supplied to state-owned power company PT PLN, which will further sell it to the general public, and this will generate enough income for PT Kertas Karft Aceh to pay its employees. The second stage involves reviving the company`s paper production operations, but before that is done, the industrial forest must be made available for supplying raw materials for the company.

Commenting on PT ASEAN Aceh Fertilizer (AAF), the minister said that the government was still awaiting a court ruling that would determine if the company would be handed over to Indonesia. "To begin with it will function under PT Pupuk Iskandar Muda (PIM)," Iskan said at the meeting, which was also attended by Aceh governor Zaini Abdullah.

He also added that the decision to turn PT Arun into a gas terminal had been finalized, and a process inviting tenders for the project had been started. The name of the company, which will be awarded the contract for developing the terminal, which includes building a pipeline network from Lhokseumawe to North Sumatra and other supporting facilities, will be revealed in the next two or three months.

Iskan noted that once the terminal was complete, it could supply gas to a lot of industries, not only in Aceh but also in North Sumatra, which was xpected to boost the economy of Aceh. Governor Zaini Abdullah hailed the program and offered his full support for the process of transforming PT Arun into a gas terminal. The minister, the governor and other delegates also inspected PT Arun`s gas refinery after holding a closed door meeting with the relevant parties.

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