Council blasts governor over drop in investment<\/p>\n
M. Taufiqurrahman, The Jakarta Post, Jakarta<\/p>\n
Councillors blasted the city administration for failing to
\nboost revenues as revealed by recent data from the Central
\nStatistics Agency showing that foreign direct investment in the
\ncity fell precipitously by a staggering 93 percent from Rp 5.48
\ntrillion (US$609 million) in 2001 to Rp 386 billion ($42.92
\nmillion) in 2002.<\/p>\n
Khudri Hasbullah of the United Development faction said on
\nFriday that the shocking investment figures had hampered the city
\nadministration's ability to provide jobs.<\/p>\n
\"This also shows that the city administration has its
\npriorities wrong, by catering to the needs of the city officials,
\nrather than stimulating economic growth in the city,\" he said in
\na budget hearing between the city councillors and Governor
\nSutiyoso.<\/p>\n
Two other factions, the Justice Party (PK) and Crescent Star
\nParty (PBB) at the council also shared the criticism.<\/p>\n
The city strategic planning for 1998-2002 stipulated that in
\n2002 the administration should have focused great effort on
\ndeveloping businesses, creating employment and reforming the city
\nbureaucracy.<\/p>\n
The city councillors, however, did not put all the blame on
\nthe city administration for its failure to attract more
\ninvestment in the city.<\/p>\n
The United Development Party (PPP) faction cited the Bali
\nterror attacks in October 2002 that claimed over 200 lives was
\ngreatly responsible for driving investors away from the country.<\/p>\n
By comparison, in 2002, the national figure of foreign direct
\ninvestment approvals -- excluding those in the energy and
\nfinancial sectors -- plummeted by 35 percent to $9.7 billion from
\n$15.06 billion in 2001.<\/p>\n
Meanwhile, Abdul Aziz Matnur of the PK faction said that the
\ncity administration fell short of boosting the rate of the city's
\neconomic growth.<\/p>\n
\"The economic growth in 2002 was 3.87 percent, only 0.23
\npercentage point higher than 3.64 percent in 2001,\" Aziz said.<\/p>\n
Economic growth this year has been forecasted to reach 4.62
\npercent.<\/p>\n
Echoing his fellow councillors from PPP, Aziz said: \"Slow
\neconomic growth and low investment will not create new jobs,
\nwhile at the same time the city is still beset by more and more
\nunemployment.\"<\/p>\n
He said that in 2002, around 560,000 people were unemployed in
\nJakarta.<\/p>\n
The councillors also highlighted the failure on the part of
\nthe city administration to generate any significant profits from
\nthe dozens of city-owned companies.<\/p>\n
In 2002, profits earned by the city-owned companies reached Rp
\n43 billion far lower than the expected figure of Rp 64 billion.<\/p>\n
The PPP faction also called on the city administration to
\nreplace the incompetent directors of the city-owned companies
\nwith people who were more professional.<\/p>\n
\"Fire those incompetent directors and establish a proper merit
\nand punishment system so that those companies can thrive,\" he
\nsaid.<\/p>",
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