INFRASTRUCTURE DEVELOPMENT IN EAST INDONESIA SOW NEW GROWTH CENTERS

The Government was now giving full attention on infra-structure building in East Indonesia (KTI) whereby to create new economic growth centers or to make the existing economic enters in that region inter-connected. The Director of Transportation, Ministry of National Development of Transportation, Ministry of National Development Planning/Bappenas Bambang Prihartono in Jakarta on Tuesday (11/9-2012) stated that the Government was planning to prepare new infrastructure projects in East Indonesia to enhance development in that region.

Bambang stated that the Government’s commitment to intensify development process in East Indonesia never ceased. Each year, the government constantly reviewed and improved the development process in East Indonesia. Bambang mentioned there were some strategic issue which was now developing in East Indonesia. In Papua, for instance, the strategic issue which were developing were the problem of infrastructure building, poverty elimination, promotion of food resiliency, and promotion of public service.

In the province of Maluku, Bambang said, beside acceleration of infrastructure building, other strategic issue were expansion of plantation and opening of new ricefields mobile health service at sea, upgrading of human resources, acceleration of fish embankment development, and development of marine tourism. Meanwhile is Sulawesi the strategic issues were: increasing regional connectivity, upgrading of human resources and attainment of Millennium Goals  (MDGs), increase of agricultural productivity and procurement of energy need. “Infrastructure development is most vital in developing new growth centers in East of Indonesia” Bambang remarked.

According to Bambang, to speed up development in East Indonesia, the Government had increased transfer of fund to the region like General Allocation Fund (DAU), Special Allocation Fund, Dividend Fund, Otsus Fund and Adjustment Fund. In addition to that Bambang said, to drum up private investment, The Government tried to increase Government's capital spending in areas where private investment was still low. The Government’s focus of attention was, according to Bambang, was to prioritize infrastructure development in areas where the Government’s capital spending was high as propeller of economy in the region. He added on that to step up development was East Indonesia, the role of Provincial Government was most important whereby to serve a strategic step in national development.

East Indonesia was today in need of marine infrastructure to support connectivity. East Indonesia, which for the most part consisted of water, needed connectivity which was maritime connectivity, which means marine infrastructure. He said that an archipelago like Indonesia needed more sea connections. Bambang also disclosed that development of marine infrastructure needed enormous amount of fund as well as high technology and expertise.

Meanwhile Vice Chairman of the Indonesia Chmaber of Commerce (KADIN) HM Sattar Tabba rated that Infrastructure Development Acceleration Program in East Indonesia was not running well. Fore that matter fair distribution of fund for infrastructure development and well balanced funding for East Indonesia as well as maneuverability in space planning and Presidential Decree for development acceleration for East Indonesia became imperative.

Sattar Tabba saw that investment opportunities in East Indonesia was still wide and prospective. However there were some handicaps felt by KADIN in enhancing development in that region. KADIN, in spurring on infrastructure development in East Indonesia focused more on acceleration of infrastructure which was designed to speed up traffic of goods and passengers. In addition to that also development on infrastructure which connected industrial centers with harbors as well as to strengthen telecommunication networking.    

Business News - September 14, 2012