EAGA calls to improve communications systems<\/p>\n
By Benget Simbolon Tnb.<\/p>\n
MANADO, North Sulawesi (JP): A seminar on investment
\nopportunities in eastern Indonesia under the East ASEAN Growth
\nArea (EAGA) concluded here over the weekend with a call to
\nimprove telecommunications and transportation systems in the
\narea.<\/p>\n
\"The infrastructure to link the key centers in the growth area
\nis very urgent if we are to facilitate faster flow of information
\namong businessmen and the media in the subregion,\" Permanent
\nSecretary of the Confederation of ASEAN Journalists (CAJ) Abdul
\nRazak said, while reading from the joint statement issued by the
\nseminar.<\/p>\n
The three-day seminar, organized by the CAJ, was attended by
\nabout 100 journalists from ASEAN countries and was addressed by
\n11 government officials, including two ministers, and two private
\nsector businessmen from Indonesia and the Philippines.<\/p>\n
Speakers at the seminar urged the four governments involved in
\nthe EAGA cooperation -- Brunei, Indonesia, Malaysia and the
\nPhilippines -- to link the key centers in the ASEAN's subregion
\nwith better direct telecommunications and transportation.<\/p>\n
Currently, people in Davao, for example, cannot make direct
\ncalls to Manado and the flight service between the two important
\ncities in the subregion is only twice a week.<\/p>\n
The seminar proposed cooperation among the EAGA's business
\ncouncils and the establishment of a business center to intensify
\nthe campaign on the development of the subregion as a place to
\ninvest and trade.<\/p>\n
The seminar also urged the subregion's working committee on
\ntrade to hasten the harmonization of export and import procedures
\nin the area with a view to accelerating trade.<\/p>\n
Herman Haeruman, the deputy chairman for regional development
\nof the National Development Planning Agency (Bappenas), noted at
\nthe seminar that to make the economy in the eastern Indonesia
\ngrow at 7.1 percent annually, in line with that of the
\ngovernment's target for national economic growth, the country's
\neastern provinces will require a total investment of around Rp
\n200 trillion (US$86.6 billion) during the current Sixth Five Year
\nDevelopment Plan.<\/p>\n
\"To meet the investment needs, private sector investment is
\ncrucial. The private sector must take a leading role in the
\ndevelopment of the area. We cannot rely only on government
\nspending to improve infrastructures there,\" he said.<\/p>\n
He added that government policy should be designed in such a
\nway as to enhance private sector investments.<\/p>\n
Constraints<\/p>\n
He identified a number of development constraints in eastern
\nIndonesia, including the low capacity of human resources, lack of
\neconomic infrastructure, the distance from economic development
\ncenters and geographic barriers, such as unstable land and rugged
\nmountains.<\/p>\n
Some provinces in the area defined as the \"eastern Indonesia
\nregion\", such as South, West and East Kalimantan and North and
\nSouth Sulawesi have enough infrastructure compared to the eight
\nother provinces that are involved in the EAGA subregional
\ncooperation.<\/p>\n
\"Challenges to increase private investment in eastern
\nIndonesia should not be only answered by public spending for
\ninfrastructure, but also by other means, such as the availability
\nof quality manpower, simple and consistent bureaucratic systems,
\nquality urban services and availability of reliable information,\"
\nhe said.<\/p>\n
Asril Noer, an expert assistant to the investment minister,
\nnoted that to speed up development in eastern Indonesia, the
\ngovernment has already established one integrated economic
\ndevelopment area (locally known as Kapet) in each province in the
\nregion.<\/p>\n
\"Every integrated area will be developed by the central
\ngovernment and the provincial administration with the
\nparticipation of the private sector,\" Asril said.<\/p>\n
He said that in July the Indonesian government issued a
\ngovernment regulation allowing certain industries to get tax
\nfacilities.<\/p>\n
The new regulation stipulates that income tax on newly-
\nestablished firms in certain industries can be borne by the
\ngovernment for 10 years in the western part of the country and
\nfor 12 years in the eastern part.<\/p>\n
In addition to the incentives, the government has also
\nprovided special incentives for investors in eastern Indonesia,
\nincluding the acceleration of depreciation and amortization, the
\ncarry-over of losses up to 10 consecutive years, 50 percent
\nreduction of taxes on land and buildings and the employment of
\nexpatriates if needed.<\/p>",
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"sponsor": "Okusi Associates",
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