Kediri relies on cigarette company for progress<\/p>\n
=============================================================<\/p>\n
The East Java town of Kediri has been named as one of the two
\ncities considered as the most attractive investment destinations
\nin the country for 2004, according to an annual survey conducted
\nby the Regional Autonomy Watch, a non-governmental organization
\nspecializing in research on regional autonomy implementation.<\/p>\n
The Jakarta Post's Indra Harsaputra went to the city to find
\nout more.
\n=================================================================<\/p>\n
Every morning at 8 a.m. Ngasiran, a sidewalk vendor at the
\nNgadisimo market in Kediri, packs up his merchandise. He
\ncarefully puts his remaining fruit and vegetables into a box and
\nmounts it onto his pedicab.<\/p>\n
\"I'm going home now. I'll be back this afternoon,\" he told The
\nJakarta Post.<\/p>\n
Samino, a janitor at the market, said vendors were normally at
\ntheir busiest at 5 a.m. and 5 p.m., the times when their main
\ncustomers, workers at the local cigarette factory, returned home
\nand stopped there to buy groceries.<\/p>\n
The market, which was built by cigarette company PT Gudang
\nGaram Tbk. for its workers, is far from fancy. The local
\nsupermarket in the area has a turnover of between Rp 500,000
\n(about US$55) and Rp 1 million a day and most of the other
\ntraders are micro businesses from the surrounding district.<\/p>\n
It does, however, have plenty of potential customers. The
\nmarket is located close to the cigarette plant, the biggest
\nbusiness in the city, which employs around 37,000 people.<\/p>\n
Currently the market accommodates around 100 traders and
\nGudang Garam says it plans to renovate and expand it further as
\npart of its commitment to improving Kediri's economy, factory
\nspokeswoman Nita said.<\/p>\n
Despite the market's dilapidated appearance, Kediri people
\nreportedly have the highest purchasing power in the country. They
\nare also the biggest producers, with the city having an average
\nGDP per capita of Rp 87.3 million.<\/p>\n
Data from the East Java's Central Statistics Bureau (BPS)
\nshowed Kediri's gross domestic regional product (GDRP) in 2003
\nreached Rp 21.62 billion, with the industrial sector listed as
\nthe biggest contributor with Rp 15.57 billion, followed by the
\ntrade, hotel and restaurant sectors with a combined Rp 3.38
\nbillion.<\/p>\n
Most of this is \"clove money\" -- Gudang Garam, which has been
\noperating for more than 40 years in Kediri, contributed more than
\nRp 17 billion, about three quarters, of the GDRP.<\/p>\n
The company was estimated to indirectly employ almost four
\nmillion people in the country and contributed Rp 27 trillion in
\ncigarette taxes to state coffers annually.<\/p>\n
In 2003, Gudang Garam recorded an increase in sales of Rp 23.1
\ntrillion or up 10.5 percent compared to the previous year's sales
\nof Rp 20.9 trillion. Sales volumes increased to 62.6 million
\ncigarettes in 2003 compared to 61.4 million in 2002.<\/p>\n
Secretary to the Kediri municipality, Zaini, said Gudang
\nGaram's contribution to the city was huge and the city had become
\na popular destination for migrant workers.<\/p>\n
However, the increasing number of people moving to the city
\nhad led to more unemployment and the city still had problems
\ntrying to create new accommodation for its citizens.<\/p>\n
In 2004, Kediri had 240,979 residents, an increase from 2000's
\nfigure of 238,536.<\/p>\n
\"To overcome the problem, we have encouraged a family planning
\nprogram and we provide employment training programs,\" said Zaini.<\/p>\n
The city processed investors' permits in a one-stop service in
\na professional manner and also involved citizens to help form
\npublic policies through an institution called the \"City Forum\",
\nwhich made the administration more transparent and accountable,
\nhe said.<\/p>\n
However, Kediri's geographic location, its lack of raw
\nmaterials and its inadequate transportation infrastructure still
\nmeant it was difficult for the city to attract new investors,
\nespecially foreign ones, he said.<\/p>\n
Data from the East Java Capital Investment Board (BPM) showed
\nthe total domestic investment in Kediri from January to August
\nlast year, stood at Rp 824.9 billion, while foreign investments
\naccounted for only Rp 33.7 billion.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/kediri-relies-on-cigarette-company-for-progress-1447893297",
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"sponsor": "Okusi Associates",
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