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
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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