Advertorial (2): KUTAI KARTANEGARA -- Sept 19
Advertorial (2): KUTAI KARTANEGARA -- Sept 19
Kutai Kartanegara offers more than oil, gas, gold and coal
The implementation of regional autonomy has made Kutai Kartanegara one of the richest regencies in the country.
Kutai Kartanegara -- commonly called Kutai or Kukar -- is the main producer of oil in Indonesia.
On Monday, President Megawati inaugurated a US$551 million oil project handled by foreign oil company, Total, in Kutai. Three other foreign oil companies, Vico, Unocal and Exspan, are also operating in the regency.
To describe how resource-rich the area is, Regent Syaukani HR said, "One oil company in Kutai produces three times more than the average production of one company in Brunei Darussalam".
Last year, the regency contributed Rp 87 trillion from oil production to the central government. As a consequence of the implementation of regional autonomy, the central government is required to hand over 15 percent of that amount to the regency.
"But we only received Rp 7 trillion," Syaukani frowned. He also regretted the fact that the central government has not fully handed over the authority to manage the sectors of forestry, agriculture and investment.
"If every region has the full authority to manage investment, for example, things will be much better. I'm sure that the regions could attract more investors," said Syaukani, who is also head of the Association of Indonesian Regencies and Municipalities.
Kutai is doing its best to boost investment in the area. The local administration is providing tax exemption facilities and other facilities to attract potential investors.
"There are no more illegal fees in the permit application process," Syaukani said. So far, 75 percent of the investors are from foreign countries, most are engaged in the exploration and production of natural resources like oil, gas, gold and coal.
It is estimated that East Kalimantan has 31.6 billion tons of coal deposits. The annual production is about 52.1 million tons.
Kutai Kartanegara -- formerly part of Kutai Regency -- is located alongside Mahakam River, covering more than 27,263 square kilometers, or about one third of West Java province. Once, it was at least three times the current size.
In 1999 the Kutai regency was divided into three regencies: East Kutai, Kutai Kartanegara and West Kutai. In total, there are now eight regencies in East Kalimantan, but Kutai Kartanegara has the richest natural resources.
But East Kalimantan, especially Kutai, has much more to offer than oil, gas, gold and coal. Among the many sectors expected to lure investors are fisheries, agriculture, eco-tourism, infra- structure construction and petrochemicals.
"We have so much arable land for pepper, cocoa, palm oil and coffee," Syaukani said.
The area is also suitable for farming, breeding cattle and owls and fish and shrimp hatcheries.
Kutai has 404,000 hectares of palm oil plantations -- which has attracted a number of Malaysian companies -- producing 19,000 tons of palm oil a year. It also has 48,500 hectares for rubber, 17,500 hectares for coffee, and additional land for other commodities like cacao, sugarcane, pepper, bananas and pineapples.
The production of pepper amounts to some 12,000 tons a year, while rice, 183,000 tons.
In the meantime, Kutai is making great efforts in the development of the agricultural sector along with the development of human resources and tourism, in anticipation of the decrease of oil and other unrenewable natural resources.
"Our farmers can not earn much because they work in a traditional way. They should learn to manage the agricultural sector professionally, in a modern way that is export-oriented," Syaukani said.
According to Kutaikartanegara.com, the official website of the regency, its Gross Domestic Product (GDP) in 1999 was Rp 15.59 trillion, including more than Rp 11 trillion from oil and gas.
With a population of over 480,000 people, the gross income per capita was Rp 33.726 million a year. However, many residents are still poor due to the great disparity in wealth distribution.
Syaukani underlined that his vision is to see the people enjoy prosperity and justice -- to become independent and skillful and to form a stronger civil society. This should be achieved through the empowerment of all "stakeholders", including the executives, legislative, the private sectors and the common people.
A number of programs have been implemented to improve the welfare of the people in the regency, which has a population of 480,000 residents.
Education is free - students from elementary school to high school level do not need to pay school fees, and each teacher receives an incentive of Rp 500,000 a month plus a motorcycle. Child labor is discouraged and the administration expects that by 2007, child labor will be abolished.
Syaukani, a high school principle in the 1970s, had also introduced the Gerbang Dayaku program or the Movement for the Development and Empowerment of Kutai. Under the program, each village received Rp 1 billion in 2001 and Rp 2 billion in 2002. This year, the amount remains the same.
The fund is to promote the development of the infra-structure, the development of the economy and the improvement of human resources.
Non-government organizations, journalists, local public figures, local councillors and students are expected to help monitor the program, which has been marred with irregularities.
"We are in the reform era, we are open to criticism. We admit that the program has not been fully successful. But in some areas, it has worked," said the 54 year-old Syaukani who used to be the local council speaker, before holding the post as the Kutai regent three years ago.
He acknowledged that his biggest challenge is how to make sure that the program is implemented efficiently.
"What we hope or dream does not always become a reality," he said, "it depends much on the people who make the implementation."
Syaukani strives to make his dreams come true through good management, working hard and praying.
Table: Budget of the Kutai Kartanegara Regency
Year Amount Increase ----------------------------------------------------------------- 1999/2000 Rp 287.3 billion 35.75 percent 2000 Rp 340 billion 18.5 percent 2001 Rp 887.15 billion 160 percent 2002 Rp 1.66 trillion 87 percent 2003 Rp 2.4 trillion 44.5 percent