Cargo lanes crucial for EAGA success<\/p>\n
By Hendarsyah Tarmizi<\/p>\n
MANADO, North Sulawesi (JP): Brunei and the Philippines have
\nappealed to Indonesia to establish more shipping and air routes
\nfrom Sulawesi and Kalimantan to neighboring countries to boost
\ntrade among members of the East ASEAN Growth Area (EAGA).<\/p>\n
Muhammad Alimin, a member of the Brunei delegation at the
\nsenior official meeting of the EAGA member countries, said that
\nthe lack of direct air routes and shipping lines discourages
\ntrade activities.<\/p>\n
Besides Brunei, the Philippines and Indonesia, EAGA also
\nincludes Malaysia.<\/p>\n
Alimin said that importing goods from Sulawesi or Kalimantan
\nthrough the Tanjung Perak port in Surabaya of East Java or
\nTanjung Priok port in Jakarta would be much costlier for Brunei
\nthan buying goods from other neighboring countries.<\/p>\n
"The establishment of direct shipping routes and air links is
\ncrucial in creating the eastern ASEAN region as a sub-regional
\ncenter of growth," he told newsmen at the end of a two-day senior
\nofficial meeting of the EAGA members on Tuesday evening.<\/p>\n
The meeting was followed by EAGA's second ministerial meeting
\nyesterday.<\/p>\n
The EAGA economic cooperation was proposed by Philippine
\nPresident Fidel Ramos in 1992 to create a free trade zone
\nencompassing Maluku, Sulawesi, West and East Kalimantan in
\neastern Indonesia, the Philippines' southern Mundane island,
\nBrunei as well as Malaysia's eastern states of Sarawak and Sabah.
\nThe proposal was endorsed during the EAGA's first ministerial
\nmeeting in Davao in southern Philippines in April this year.<\/p>\n
The EAGA is the third sub-regional cooperation in the
\nAssociation of Southeast Asian Nations (ASEAN) after the Sijori
\ntriangle of growth involving Indonesia's Riau province, Singapore
\nand the Malaysian state of Johor and the Indonesia-Malaysia-
\nThailand-Growth Triangle, encompassing Indonesian provinces of
\nNorth Sumatra and Aceh, western parts of Malaysia and Thailand's
\nsouthern areas.<\/p>\n
The senior officials meeting on Monday and Tuesday hammered
\nout reports of working groups established during the first
\nministerial meeting to identify the possible improvement of sea
\nlinkages, transportation and shipping services as well as to
\nforge out possible cooperation in the fields of fishery,
\nforestry, energy and human resource development. The officials'
\nrecommendations got approval from ministers yesterday.<\/p>\n
Antonio S. Peralta, a member of the Philippine delegation,
\nshared Alimin's view that without shortening shipping routes,
\nimporting goods from Sulawesi and other parts of eastern
\nIndonesia will not be viable for the Philippines due to high
\nfreight costs.<\/p>\n
Shipping<\/p>\n
Asked about shipping problems, Indonesia's Director General
\nfor Sea Transportation Soentoro said the government is studying
\nthe possibility of developing a sea port in eastern Indonesia
\ninto a cargo consolidation center to facilitate export and import
\nactivities to other members of EAGA.<\/p>\n
"The Bitung port and Samratulangi airport both in North
\nSulawesi are also being prepared to become distribution centers
\nof goods from eastern Indonesia," he told newsmen.<\/p>\n
Local economists and businessmen said the lack of direct
\nshipping lines and air connections is not the only obstacle in
\nintegrating eastern Indonesia's economy to other parts of ASEAN
\ncountries.<\/p>\n
John WT Lengkey, chairman of the North Sulawesi chapter of the
\nIndonesian Chamber of Commerce and Industry, said complicated
\ninvestment procedures are also a major handicap.<\/p>\n
He said foreign investors are still required to obtain a
\nlicense from the Investment Coordinating Board in Jakarta to run
\na business in provinces including North Sulawesi.<\/p>\n
"It does not only take time but it is also very costly as
\ninvestors have to frequently go to Jakarta to process business
\nlicenses," he said.<\/p>\n
He understood that the government has established a special
\nteam comprising of 14 ministers to speed up the process of
\neastern Indonesia's economic integration into the EAGA economic
\nframework.<\/p>\n
"But it is just a political will. We need a real action," he
\nsaid of the government's slow response to the growing business
\nopportunities in the sub-region.<\/p>\n
A similar complaint was expressed by JWP Mandagie, a noted
\neconomist in North Sulawesi. Indonesia is lagging far behind
\nother EAGA members in benefiting from the growing business
\nopportunities, he said.<\/p>\n
"The Philippines, Brunei and Malaysia have already talked
\nabout the free trade concept while Indonesia is still busy with
\nits bureaucratic problems, " Mandagie said.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/cargo-lanes-crucial-for-eaga-success-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}