TO SPUR ON INDUSTRIAL ACTIVITIES OUTSIDE JAVA

The Government was continuing expansion program of industrial estates outside Java, among others in South Sulawesi, North Sumatra, Lampung, Maluku, and Papua. Some locations outside Java would be developed into industrial estates. Access would be made easy and inter industrial sectors would be inter-complementary.

The Ministry Saleh Husin stated on Friday (13/2) that the Government was striving to enhance equal distribution to all parts of Indonesia in the hope that contribution of the provinces outside Java would be increased from 27.22% in 2013 to 40% in 2035.

Industry outside Java would be developed into non oil-gas. Such was supported by growth in the said sectors which was 6.56%, higher than that in Java which was only 5.99%.

Minister Husin continued to support investors to increase contribution of regional industry to national economy. By the theme “Building of strong and industry toward economic self reliance” Saleh underscored that the trend of industrial development was expanding toward outside Java.

In the process of industry outspreading, the role of Provincial governments were most important; such was written in Article 10 and 11 of Law No 3 2014 on industry in which there was pled to regional governments of all levels to set up an industrial Development Plan in the Regions. The Plan refers to National Industrial Development Plan and National Industrial Policy. Saleh stated that he also rendered counseling and technical guidance to local Governments.

In addition to the above, the Ministry also supported and facilitated regional Governments to develop their respective regions. The Republic of Indonesia is divided into 20 Industrial Development regions (WPI) based on the resources and supporting facilities.

According to Saleh, development of industrial estates had been adjusted to local potentials. The local potentials would be developed among others by building infra structures like roads and harbors.

To finance development in the regions, Saleh would probe on collaboration between the Government and the private sector; if such was not possible, the Government could undertake to build industrial estates in the regions. The end result was that local products could be more competitive at the global market. (SS)

Business News - February 18, 2015