A hidden treasure in Sumatra<\/p>\n
By Naswan Iskandar<\/p>\n
Like it or not, this province is probably the most forgotten
\nregion in the country. It seems many Indonesians have no idea
\nthat, for instance, 60 percent of Jambi comprises forests. To
\ncommemorate the 44th anniversary of this \"hidden\" province, The
\nJakarta Post presents this page to explain the latest facts and
\nfigures about Jambi and its people, businesses, cultures and
\nother important issues.<\/p>\n
Jambi (JP): The dynamics of Jambi's economy are inseparable
\nfrom those of the national economy; the province was as badly
\nhurt as the rest if the country when the economic crisis hit
\nIndonesia in 1997. From an average 7 percent annual growth
\nbetween 1969 and 1993, Jambi's economy took a dip to 3 percent in
\n1997 and further declined until it reached a point of negative
\ngrowth, minus 6 percent, in 1998. Weak financial infrastructure
\nled to a high-cost economy and a decline of confidence of both
\ndomestic and foreign economic and business players.<\/p>\n
When the national economy took a turn for the better, Jambi's
\neconomy showed signs of recovery as well, as indicated in an
\nimprovement in the general level of prices. Following a drastic
\nincrease of 49.77 percent in the fiscal year 1998\/1999, Jambi
\nexperienced a deflation of 3.3 percent in the next fiscal year.<\/p>\n
An analysis of all industrial sectors shows that only property
\nstill recorded a negative growth, while all other sectors
\nexperienced a positive growth. The improvement of regional
\neconomy has been accompanied by expansion of employment. The
\ntotal workforce, those in the age bracket 15 to 64, was 1,045,019
\nin 1998 and rose to 1,143,364 in the following year. Some 94
\npercent of the total number were \"absorbed\" by various sectors in
\n1998; the figure increased to 96.53 percent in 1999. This means
\nthat unemployment has dropped from 5.89 percent to 3.47 percent.<\/p>\n
Export-import<\/p>\n
Both domestic and international trade play an important role
\nin an economy's growth, as do investments. After the 1997 crisis,
\nhowever, Jambi's exports and imports have yet to show signs of
\nrebounding.<\/p>\n
The positive growth in international trade is the result of a
\nsignificant increase in Jambi's non-oil and gas export. In the
\nfirst trimester of 2000, non-oil and gas trade reached US$142.48
\nmillion, or 10 times higher than the amount recorded in the first
\ntrimester of 1999. The figure declined in the second trimester of
\n2000 to $138.98 million, while the figure for August 2000 was
\n$46.95 million<\/p>\n
Timber and rubber remain Jambi's two dominant export
\ncommodities. However, since the first quarter of 1999 export has
\ndiversified when a number of commodities including foodstuff,
\nhandicraft and paper pulp penetrated the international market.
\nThis has resulted in the sharp increase of combined-commodity
\nexports outside of timber and rubber.<\/p>\n
Most of Jambi's imports is for industrial requirements. Out of
\nthe eight imported commodities, machinery and equipment dominate
\nthe import market followed by livestock, animal products,
\nvegetable\/plant products, chemicals and metal products.<\/p>\n
A comparison of export and import values shows that Jambi
\nenjoys a surplus in international trade, but a deficit in
\ninterprovincial trade. The total surplus for 1999 was Rp 163.61
\nbillion which was a balance from international trade surplus of
\nRp 1.11 trillion. The international trade surplus has been
\nprojected to increase from the first to the fourth trimester of
\n2000, but a projected increase in interprovincial trade deficit
\nbalanced out the total surplus for the said year.<\/p>\n
Natural potentials<\/p>\n
Jambi is known for its various potentials. In addition to
\nagriculture, the subsectors of plantation, forestry, mining and
\nenergy, and industrial are some of Jambi's natural wealth.<\/p>\n
Jambi people traditionally till rubber plantations, turning
\nthe commodity into the region's superior product and one of the
\nmost-needed for world industries. Jambi's traditional rubber
\nplantations are among the big four in Indonesia. In 1999, Jambi
\nhad 552,518 hectares of rubber plantation with an expansion rate
\nof 1.80 percent annually.<\/p>\n
Although Jambi is one of Indonesia's rubber production centers
\n-- in fact, for Jambi, rubber is a \"cultural\" commodity -- its
\nquality and productivity remains low. A number of factors have
\nbeen identified as the causes, including the use of poor seeds
\nthat do not respond well to fertilizing, the use of poor crumb
\nrubber equipments, illegal levies and the excessively long chain
\nof trade activities.<\/p>\n
This situation calls for firm measures, in order to bolster
\nJambi's position as a rubber producing area enjoying good market
\nshares. It has been projected that world rubber demands up to
\n2002 will still be higher than supplies. Exporting countries for
\nJambi's rubber include the U.S., Singapore, Germany, Yugoslavia,
\nthe Netherlands, China, Canada, Colombia, Italy, Taiwan, Belgium,
\nFrance, Turkey, Britain, Japan and Greece.<\/p>\n
Most of Jambi's rubber is processed by Jambi crumb rubber
\nindustries in the form of sheets and is exported through Jambi's
\nport. Some portion of the production is marketed to other regions
\nincluding West Sumatra, South Sumatra and North Sumatra. On the
\nother hand, some of the rubber processed in and exported by Jambi
\noriginates from West Sumatra and South Sumatra provinces as well
\nas Riau, depending on the price differences of the commodity.<\/p>\n
Another of Jambi's superior products is cinnamon, from the
\nKerinci Regency. Up to 1999, the total area of cinnamon
\nplantations in Jambi was 59,518 hectares, with total production
\nof 24,359 tons. Total national production of cinnamon is 35,000
\ntons per year. For world demand of cinnamon today Indonesia is
\nthe largest supplier (90 percent), while China, Sri Lanka and
\nother Indo-China countries meet the rest of the needs.<\/p>\n
This situation shows how great a potential Jambi has to
\ndevelop the commodity, both in terms of agriculture, processing
\nand marketing. In addition to the question of marketing, the
\nprocessing of cinnamon is concentrated in West Sumatra. Jambi
\nproduces raw cinnamon with both low and combined qualities.
\nCleaning, grading, sorting and packaging is done in the
\nneighboring West Sumatra capital of Padang. This situation
\ncertainly does not benefit Jambi, because off-farm contribution
\nis being enjoyed by other regions. This also shows that Jambi
\nstill has great opportunities to develop its own processing
\nplants and export the commodity itself.<\/p>\n
Palm-oil is another developing industry that interests many
\ninvestors to Jambi. Up to 1999, palm-oil production reached
\n1,352,357 tons annually, which was far below local demands. This
\njustified the government's plan to develop a million-hectare
\npalm-oil plantation. The government is also planning to issue
\nmanagement licenses for another 373,717 hectares to investors.<\/p>\n
In addition to agriculture and plantation sectors, Jambi is
\nendowed with considerable natural wealth in its forests.
\nProtected forest area accounts for 870,250 hectares, while
\nproduction forest accounts for 1,278,700 hectares and concession
\nforest 1,727,870 hectares.<\/p>\n
Protected forests are one of the beneficial aspects of forest
\nmanagement here, as they maintains a productive ecosystem and
\nhelp to ensure that animal and vegetation sources grow. This
\nwill, in turn, aid related industries to grow. It has to be
\nadmitted, however, that Jambi forest products have yet to be
\nmanaged efficiently and optimally for the interests of the Jambi
\npeople as they have yet to be processed as finished products.<\/p>\n
Minerals are yet another potential resource. Out of 32 C-class
\nmining materials, 18 (bentonite, limestone, marble, granite,
\nquartz sands and obsidian) are found in a number of Jambi
\nregencies and cities. Most of the mining potential is still being
\nmanaged on a small scale, but the minerals are indeed a source of
\ngreat benefit for small and medium industries.<\/p>\n
Coal is found in 22 locations. Studies show that total coal
\ndeposit in 10 locations has reached 369.57 million tons, with an
\nenergy content ranging from 4,800 to 6,500 calories.<\/p>\n
Oil and natural gas mining are found in four Jambi regencies,
\nspanning 14 locations with total reserves of 792,014,755 barrels.
\nAccording to the Santa Fe energy exploration company -- one of
\nthe oil and gas companies operating in Jambi -- only two wells
\nout of the 48 with potential, are currently in operation. This
\nspells great opportunity for Jambi to progress in this sector.<\/p>\n
In addition to oil and coal, Jambi has a number of other
\nenergy mining potentials, including natural heat in Kerinci
\nRegency generating 30 megawatt of power, the Meranging hydropower
\nplant producing 340 megawatts, the gas-powered plant in Muara
\nSabak, the microhydropower plant in Meranging, as well as a coal
\npower plant which produces 400 million tons of calories.<\/p>\n
Jambi's natural wealth is already abundant, and still it is
\nendowed with the great Batanghari River. The largest river in
\nSumatra island runs across Jambi, from its upstream in West
\nSumatra going straight down to Berhala Strait. In addition to
\nserving the traffic of goods to and from various regencies and
\ncities, the river is an important connection to Muara Sabak
\nexport port. Further, the river serves as the starting point for
\nthe development of fishery production and commercial trade.<\/p>\n
Tourism, art and culture potentials<\/p>\n
Jambi's tourism development is considered to be most promising
\nvenue for regional economic development. Tourism should develop
\nand make the most use of existing resources in order to attract
\nmore visitors, and Jambi has an abundance of interesting places
\nscattered across its region.<\/p>\n
Natural tourism, agrotourism, ecotourism as well as historical
\nand cultural tourism are all in existence in Jambi, each boasting
\nlocal specifics. Jambi has been recorded as having 70 natural
\ntourism objects, 42 cultural and historical tourism objects and
\n25 objects that cater to special interests.<\/p>\n
One of the more interesting places to be developed as a
\ntourism object is the Kerinci Seblat National Park. Although the
\npark area actually covers the corners of four Sumatra provinces,
\nJambi, or Kerinci Regency to be precise, is home to its largest
\nportion.<\/p>\n
The park is one of world's largest tropical forests, serving
\nas part of the world's lungs and representing among the most
\ncomplete ecosystems known as Montana and Sub-Alpine ecosystems.
\nThe park is home to 4,000 varieties of plants, and 1\/50 of the
\nworld's bird species. A total of 6 primates, 37 mammals, 6
\namphibians, and 134 species of flora are found in the park,
\nincluding the endemic flora known as Kerinci Pines.<\/p>\n
The Berbak National Park is another Jambi treasure, a unique
\nphenomenon of lowland forests that runs along the Berbak River.
\nBirds and primates, protected reptiles and wild animals, as well
\nas thousands of species of wetland flora can be found along the
\npark. The Ramsar Site world convention in 1991 recognized the
\nbeautiful Cemara Berbak as the transit place of migrating birds
\nfrom Australia; the convention also praised the natural wealth of
\nthe as-yet untouched 150,000 hectares of peat land. The park is a
\nheaven for research and education purposes, and also a great
\ntourism potential as it is the home to a number of interesting
\nobjects such as the Orang Kayo Hitam tomb, Air Hitam Laut and
\nBerhala Island, and the tomb of Datuk Paduko Berhalo, who was the
\nforefather of the Jambi kings.<\/p>\n
The Muaro Jambi complex of temples is another renowned
\nhistorical and cultural tourism object, a site of Melayu Kingdom
\nrelics in the Sekernan district. The construction of the temples
\nand historical relics found there have revealed it to be a legacy
\nof the Hindu culture in the 4th century and 5th century.<\/p>\n
Also in this complex of temples have been found fragments of
\nporcelain jars, bowls, containers and vases from the Sung dynasty
\nof China in the 18th century and 19th century. A number of
\nstatues and gongs bearing Chinese inscription have also been
\ndiscovered here.<\/p>\n
No less interesting are the tourism potentials of Jambi's arts
\nand culture. Interesting folk art and culture can be found across
\nthe region, in the forms of dances, music, rites and plays. The
\nKajanglako Art Center was established three years ago in the
\nheart of Jambi City, a nonprofit organization whose commitment is
\nto unearth and maintain the arts of Jambi as well as provide an
\nalternative venue for local artists to express their creations.
\nManaged by professionals, the art center is becoming a center for
\nthe studies and information of Jambi's culture. Founded by the
\nFoundation of Bina Lestari Budaya Jambi, the Kajanglako Arts
\nCenter is also host to Selarang Pinang Masak, a center for the
\ndevelopment of traditional crafts of Jambi especially the batik
\nof Jambi. To complete the picture is the Batanghari Restaurant
\nwhich serves menu specific to Jambi.<\/p>\n
Since 2000, the Foundation of Bina Lestari Budaya Jambi,
\nthrough the Kajanglako Arts Center, has collaborated with the
\nJambi government to hold two major annual events namely the Jambi
\nPlay Arts Week and the Jambi Arts Festival. No less than 500
\ntraditional artists from across the province were involved in the
\nstaging of the first event last year. The Jambi Arts Festival, on
\nthe other hand, is eying a bigger stage namely the national and
\ninternational arts forums. In the first staging of Jambi Arts
\nFestival, artists from various major cities in Indonesia,
\nMalaysia, Japan and Singapore took part. It is hoped that the two
\nevents may prove to be an interesting tourism calendar for world
\nvisitors.<\/p>\n
Geographical potential and infrastructure readiness<\/p>\n
Jambi has every potential to grow and develop rapidly, given
\nits geographical position. The province is included in the
\nregional development network (as stipulated by Presidential
\nDecree Number 4 1996) and neighbor to new economic centers known
\nas Sibajo (Singapore, Batam and Johor). Nationally, together with
\nSouth Sumatra and Riau provinces, Jambi is cultivating a new
\neconomic center known as Sutanjari (South Sumatra, Jambi and
\nRiau) to complement the existing centers of growth. This promises
\nbright prospects for Jambi's economy in the future.<\/p>\n
Ultimately, the prospects are expected to transform Jambi's
\nrole and place in the national and international economic scenes.
\nIt goes without saying that the interests of investors and
\ntourists depend greatly on political situation and regional
\nsecurity. They also depend the availability of facilities,
\nservices and supporting infrastructure. All aspects of a product
\nand its market are two factors that determine the added value of
\na production activity.<\/p>\n
Network of access roads<\/p>\n
Among the more important supporting infrastructure for Jambi
\nare roads and bridges. In general land transportation is divided
\ninto three major parts: the west, east and central zones. The
\nnorthern part of the western zone connects Jambi with cities in
\nWest Sumatra, while access to the south connects it with cities
\nin Bengkulu and South Sumatra provinces. The network is
\nrelatively established and well supports the transportation of
\npeople and goods between regions.<\/p>\n
The northern part of the eastern zone connects Jambi with the
\ncities in Riau while the southern access connects it with cities
\nin South Sumatra provinces. The network is relatively established
\nand adequate for the regional traffic, along whose side is a
\nscattering of production and services centers.<\/p>\n
The central zone runs across the western and eastern zones
\nconnecting the two Trans-Sumatra lines and connecting the various
\nareas of Jambi inland. The weakness of this particular access is
\nthe fact that it runs alongside Batanghari River and so is
\nsusceptible to flooding.<\/p>\n
Another inseparable aspect to the development of facilities
\nfor production and marketing is the construction of new roads.
\nThe length of Jambi's roads (8,615 km) is considered inadequate
\nfor its vast area and the scattering of regional potentials. It
\nis clear that attention should be given to the development of
\nroads connecting economic and production centers in the broadest
\nterms.<\/p>\n
Other infrastructure<\/p>\n
Another important infrastructure is the Sultan Thaha Airport
\nof Jambi, which serves both national and international air
\ntraffic.<\/p>\n
Business and tourism have both shown considerable growth; 78
\npercent of total domestic visitors to Jambi were businesspeople
\nand Asian and European tourists transiting in Singapore before
\nproceeding to Jambi. This fact shows that potential the is indeed
\ngreat for Jambi.<\/p>\n
Muara Sabak Seaport is located strategically at Batanghari
\nRiver's estuary, facing the Berhala Strait, which is also on the
\nSibajo threshold. This enables the Muara Sabak port to act as the
\nmain port to facilitate export and import flows, while other
\nports along the Batanghari River upstream act as supporting
\nfacilities.<\/p>\n
The Muara Sabak Seaport is also expected to benefit the growth
\nof Jambi's genuine income because exports and imports can be
\nfacilitated through one main port. The resulting reduction in
\ntransport and loading-unloading costs for Jambi's export and
\nimport commodities would be added attractions. In addition, the
\nseaport has so far helped improve efficiency of river traffic to
\nand from Muara Sabak, especially for the transportation of
\nplantation, forestry and mining commodities.<\/p>\n
In addition to having bright prospects, the Muara Sabak port
\nis also facing a crucial challenge, namely the silting up of the
\nriverbed. Studies blame this on the annually increasing rate of
\nsedimentation especially during the rainy season, and on the
\ncoagulation of soft sediments of the river and the sea. This
\nsituation calls for specific measure, including regular dredging
\nwith medium or high technology equipment.<\/p>\n
The topography and contour of the surrounding land poses
\nanother challenge to the port management. The port is surrounded
\nby swamps affected by the ever-changing rise and ebb of tides.
\nAgain this condition needs specific treatment, especially the
\nfilling-up of the lowland surrounding the port. Other problems
\ninclude the inadequacy of facilities, including power sources.<\/p>\n
Prospects<\/p>\n
In order to take advantage of the prospects, regional
\ndevelopment policies as well as provincial spatial policy dictate
\nthe need for the establishment of a united economic zone with the
\nwestern coast as the target of marketing. The policy demands the
\nestablishment of industrial zones as the supporting facility for
\nMuara Sabak port, turning it into the gate for export and import
\nwhich is investment-efficient. This will also mean a closer
\ndistance from Jambi to raw material sources, and facilitates the
\ncreation of value added for Jambi's resources.<\/p>\n
However, challenges loom ahead for the development of Jambi's
\nindustrial sectors, the most important being flow of investment
\nwhich is lower than that to other Indonesian regions.<\/p>\n
A number of factors are to blame, including lengthy
\nbureaucratic procedures, intangible costs which are sometimes as
\nhigh as 20 percent of the total value of investments and the
\nabsence of incentives to lure investors to venture to the
\nprovince.<\/p>\n
Other factors, such as the lack of accurate data and
\ninformation about the region's potentials contribute to the
\nexisting poor image that investors have about Jambi. Then there
\nis also the inadequate infrastructure.<\/p>\n
Limited capital for industrial development, especially for
\nsmall and medium scale business ventures owing to limited banking
\nassistance. Finally, there is also the need to develop the as-yet
\nnascent industrial management system.<\/p>\n
The writer is a locally based journalist.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/a-hidden-treasure-in-sumatra-1447893297", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }