Land of hope and promise<\/p>\n
For many outsiders, this natural resource-rich province is all
\nabout oil, gas, black orchids, the pesut Mahakam (freshwater
\ndolphin), rhinoceros hornbills, orangutans, and the Dayak tribe.
\nFor locals, it is their land of hope, particularly with the
\nnationwide implementation of the regional autonomy which was
\nlaunched a week ago. The Jakarta Post proudly brings this page
\nin line with the 42nd anniversary of East Kalimantan today.<\/p>\n
JAKARTA (JP): The bell that signaled the implementation of the
\nregional autonomy has been echoing across the country.<\/p>\n
In East Kalimantan, one of the country's biologically and
\nculturally-rich provinces, the bell has given much, if not great,
\nhopes to the local people of all walks of life.<\/p>\n
Many believe the new scheme, which will amplify the revenue of
\nthe province and empower local administrations would soon bring
\nsubstantial changes to the province's development and improve the
\npeople's lives.<\/p>\n
For decades, the locals wished they could have a greater share
\nof the province's earnings from, for instance, oil, gas and
\nfertilizer production, as these were mostly directed to Jakarta.<\/p>\n
An East Kalimantan governor, while delivering a speech to
\nstudents of Mulawarman University back in the early 1990s, said:<\/p>\n
\"Our current annual budget is equivalent to the value of a
\nfull load of fertilizers in an ocean liner.<\/p>\n
\"How many ships fully loaded with fertilizers, gas, and oil
\ndepart from the Bontang seaport per month? So, can you imagine
\nwhat this province would be like if all the revenue collected
\nfrom these shipments went to the provincial budget,\" the governor
\nsaid.<\/p>\n
This was said some 10 years ago.<\/p>\n
East Kalimantan which is one-and-a-half times the size of Java
\nand Madura islands, has for years served as a economic and
\ngeographic gateway to other places on the island of Kalimantan.<\/p>\n
At its northern border lies Sabah (a Malaysian state). It's
\nalso a short fly away from Brunei Darussalam and Sarawak (another
\nMalaysian state).<\/p>\n
Tropical rainforests cover some 80 percent of this province.
\nIt also has nature and wildlife reserves.<\/p>\n
Rattan vines in East Kalimantan could grow up to 200 meters
\nlong.<\/p>\n
Common animals found in this province include the bekantan
\n(Nasalis larvatus) and chimpanzees (Pongo pygmaeus).<\/p>\n
The island's indigenous Dayak tribe live in the hinterlands.
\nSome of these communities have not been touched by modernity.<\/p>\n
According to Discover Indonesia, the Dutch first came to the
\narea for trade in 1635 in a flotilla. They landed in Kutai, now
\nconsidered the richest regency in Indonesia.<\/p>\n
In 1933, a Dutch firm began mining oil in Tarakan and Bunyu
\nIslands.<\/p>\n
When the Japanese soldiers planned an attack on Indonesia in
\n1942, they picked Tarakan Island as the point of entry, aiming to
\ntake over the oil fields.<\/p>\n
The province, now under the governorship of Suwarna Abdul
\nFatah, regularly holds ceremonial feasts, which includes the
\nPesta Erau to mark the harvest season and as an expression of
\ngratitude.<\/p>\n
Thousands of visitors usually flock to Tenggarong, capital of
\nKutai regency, to witness the annual ceremonies, which include
\nthe floating of a \"dragon\" on the 920-kilometer long Mahakam
\nRiver.<\/p>\n
East Kalimantan has four major cities, with Bontang --
\nlocated under the administration of Kutai regency -- as the most
\neconomically successful.<\/p>\n
A bright treasure<\/p>\n
LNG or liquefied natural gas is one of the most valuable
\ntreasure of Indonesia. Did you know that in 1986, Indonesia was
\nalready taking a surplus of LNG from Bontang and shipping it
\n24,000 km to Boston, the U.S.? It was the longest LNG voyage
\never, and only the second spot sale of the 1980s.<\/p>\n
LNG has affected Indonesia in another more subtle way. It has
\nopened new doors to international relationships, especially in
\nthe Asia-Pacific region, that otherwise might not have occurred.
\nIndonesia's oil began paving the way as early as the late 1950s,
\nwhen Pertamina arranged the first shipment of crude oil to Japan.<\/p>\n
As a major producer of oil and timber, East Kalimantan is at
\npresent the most industrially advanced province of the island.<\/p>\n
Oil and natural gas are found along the entire east coast,
\nwith refineries centered at Balikpapan and Bontang.<\/p>\n
East Kalimantan natural gas reserves are in Muara Badak
\nDistrict, Kutai Regency. In 1972, its exploitation potentials
\nbegan, carried out by Pertamina, and Huffco as the appointed
\ncontractor on royalty basis.<\/p>\n
To market the gas, Pertamina built the first Indonesian
\nliquefield natural gas plant in Bontang -- with an area of 40,670
\nsq. km and population of 73,533 distributed over five districts
\n-- from production to shipment in insulated containers to buyers
\nin Japan. Shipments in specially built tankers, each capable of
\ncarrying 125,000 cubic meters of LNG, began from Bontang in
\nAugust 1977.<\/p>\n
Bontang's potential is its richness in natural gas resources,
\nhence, large industries as in urea fertilizer and amoniac have
\nbeen established here.<\/p>\n
The gas fields which supply gas to the Badak LNG Plant in
\nBontang are Badak, Samberah, Nilam and Mutiara, which are
\noperated by Vico; Handil, Bekapai pal, Tambora, Tunu and Peciko
\nfields are operated by Total Indonesie; Attaka and Kerindingan
\nfields are operated by Unocal.<\/p>\n
At the beginning, Bontang was but a small fishing village with
\n7,000 inhabitants. Statistics show an increase of 17 percent a
\nyear, mainly caused by migrants originating from the neighboring
\narea and coming from other islands.<\/p>\n
This region not only has large quantities of oil and natural
\ngas. Kaltim Prima Coal is the Indonesia company for BP p.l.c. of
\nEngland and RTZ-CRA England-Australia. In 1982, an agreement was
\nsigned between KPC and PT Batubara Bukit Asam, an Indonesian coal
\ncompany.<\/p>\n
In the mining area, Kelian Equatorial Mining Company (KEM)
\n(Indonesian partner) in cooperation with Rio Tinto Ltd.
\nAustralia, together hold 90 percent share, with the remaining 10
\npercent belonging to PT Harita Jayaraya, Indonesia. The Kelian
\nGold project is a Contract of Work between the Indonesian
\ngovernment and KEM that was signed on Feb. 27, 1985, entitling
\nKEM to full management and responsibility throughout its mining
\nareas and in the operation.<\/p>\n
Fast Facts<\/p>\n
Size: 211,440 square km; Major cities: Balikpapan, Tarakan and
\nBontang; Places of Interests: Mahakam River, Tanjung Harapan beach,
\nTanjung Isuy ( Dayak Benuaq settlement), and Kersik Luay nature
\nreserve; Population: 2.52 million; International Airport: Sepinggan
\nin Balikpapan; International Seaport: Semayang in Balikpapan;
\nPrimary products: Oil, gas, timber, coal, and fisheries;
\nForeign tourists: 27,000 (in 1999)<\/p>",
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"sponsor": "Okusi Associates",
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