Poor infrastructures hamper investments in eastern regions<\/p>\n
JAKARTA (JP): Poor infrastructure in eastern provinces of the
\ncountry has hampered the growth of investments there, heads of
\nprovincial offices of the Investment Coordinating Board (BKPM)
\nsaid here yesterday.<\/p>\n
The chief of BKPM's West Nusa Tenggara office, Lalu G.
\nWirasentana, told The Jakarta Post that most of the problems
\nfaced by investors in his province are the poor conditions of
\nroads and lack supplies of electricity.<\/p>\n
\"Some areas of the province's regencies have not been reached
\nby electricity networks and most investors must therefore depend
\non their own power generators for running their plants,\" he said.<\/p>\n
Wirasentana was among 150 BKPM officials attending the three-
\nday annual meeting on investment coordination. The meeting,
\nopened by Coordinating Minister for Industry and Trade Hartarto
\non Monday, is scheduled to be closed today by State Minister of
\nInvestment Sanyoto Sastrowardoyo.<\/p>\n
Wirasentana said that due to the poor infrastructure, the
\nrealization of investment commitments in his province has reached
\nonly some 60 percent over the last few years.<\/p>\n
Americo Nunes, head of the supervisory board for investment
\naffairs of East Timor, told the Post that the poor conditions of
\nthe province's airports are the main problem for investors.<\/p>\n
\"We have therefore asked the ministry of transportation to
\nexpand the existing airport in Baukau,\" he added.<\/p>\n
Promotion<\/p>\n
\"But more importantly, the lack of promotion of the province's
\npotentials in addition to the political situation in East Timor
\nhave in fact caused the slow growth in investments,\" Nunes said,
\nadding that there are only two investment projects established in
\nthe province so far.<\/p>\n
The first domestic investor, which began operation in 1987 in
\nEast Timor, is PT Samaflu Agung which constructed 600 houses with
\nan investment of Rp 1.24 billion, followed by travel agency PT
\nMulti Perona Maya in 1991 with an investment of Rp 1.06 billion,
\nNunes said.<\/p>\n
\"There are 10 new investors applying for business rights in
\nEast Timor this year, most of whom are interested in handicraft,
\nceramic and forestry industries,\" he said, adding that no foreign
\ninvestment commitments are registered so far.<\/p>\n
Abu Bakar Makarau, head of BKPM's Central Sulawesi office,
\ntold the Post that his province is facing a serious problem with
\ntelecommunications.<\/p>\n
\"Telephone services have not reached sub-districts of the
\nprovince,\" he pointed out.<\/p>\n
\"The lack of telecommunications has in fact discouraged
\ninvestors from entering Central Sulawesi,\" he added.<\/p>\n
He noted that the realization of the province's overall
\ninvestments only reached Rp 175 billion from its original target
\nof Rp 1.2 trillion last year.<\/p>\n
Frans Lapananda, head of BKPM's North Sulawesi office, said
\nthat land appropriation is a serious problem faced by his office.<\/p>\n
\"The ownership of land is traditionally related to
\ninheritance, thereby consuming a longer time to make
\ntransactions,\" he added.<\/p>\n
He said a cement plant will be built in the province by PT
\nSulenco Whibawa with an investment of Rp 432 billion to produce
\n750,000 tons of portland cement per year. PT Dharma Rigowa
\nNusantara will also set up another cement plant with an
\ninvestment of Rp 600 billion and a capacity of one million tons a
\nyear near Gorontalo.<\/p>\n
Unequal growth<\/p>\n
Sanyoto conceded that growth both in domestic and foreign
\ninvestments was still unequal in the country.<\/p>\n
A BKPM study on the realization of investments showed that
\nWest Java, Jakarta, East Java, Central Java and Riau ranked the
\ntop places in attracting investments.<\/p>\n
Out of the Rp 198.15 trillion (US$91.44 billion) domestic
\ninvestments during the last five years, around 32.18 percent was
\ncommitted for projects in West Java, 12.07 percent in Jakarta,
\n8.29 percent in East Java and 7.84 percent in Central Java.<\/p>\n
Out of the foreign investments of $41.19 billion during the
\nlast five years, 36.58 percent was committed in West Java, 23.62
\npercent in Jakarta, 10.6 percent in Riau and 9.85 percent in East
\nJava.<\/p>\n
Sanyoto assured that the government is committed to initiating
\nconcerted efforts to promote investments in eastern provinces.
\n(fhp)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/poor-infrastructures-hamper-investments-in-eastern-regions-1447893297",
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