Big plans for Natuna Islands

Big plans for Natuna Islands

JAKARTA (JP): The Natuna Islands, which are strategically located near a busy international shipping lane in the South China Sea, are to be developed into one of Indonesia's major economic growth centers on the basis of the plantation industry and the government's resettlement program.

Minister of Transmigration Siswono Yudohusodo told the Antara news agency yesterday that the major considerations behind the plan are security and defense rather than commercial, although there is strong potential for the latter.

Natuna, a largely barren island which is part of Riau province, is Indonesia's northernmost territory in the South China Sea. A small military base is located on the island.

The waters around Natuna contain what officials claim is the world's largest natural gas reservoir.

There have been concerns in recent years about the heightening of tensions in the nearby Spratly Islands, whose sovereignty is being contested by China, Taiwan, Vietnam, Malaysia, the Philippines and Brunei. In addition, Indonesia and Vietnam are in dispute as to the location of their border in the South China Sea, just to the north of the Natunas.

Siswono said the transmigration program envisaged for the Natuna Islands for the next 10 to 15 years will support the government's security and defense program. Given its strategic location near a busy international shipping lane, the Natunas deserve more attention from the government, he said.

The ministry is planning to develop the plantation business on a large scale, using the nucleus-small holders scheme. Under the scheme, a major plantation company acts as supervisor and helps with marketing and with the management of plantation areas owned by settlers.

The government is also considering the development of shrimp ponds and fishing enterprises under the same scheme, he said.

Siswono said the cash crops being considered include oil palm and rubber, in line with the recommendations of a recent feasibility study on the soil conditions of the islands.

He said the PT Djayanti Group is expected to take part in the endeavor. The group is partly controlled by tycoon Sudwikatmono.

Work on the project has already begun.

The government is currently developing 15,000 hectares of oil palm plantation which will eventually be managed by about 10,000 families of transmigrants, the minister said.

The island is said to be capable of accommodating 40,000 hectares of palm oil plantation.

Some 600 families of pioneers, sent to the islands 10 years ago, have had great success in the cultivation of oil palm plantation, he said.

The minister said Natuna's location would also be advantageous from a marketing point of view because of its proximity to potential markets, such as the Philippines, Japan, Singapore and Hong Kong.

Produce from Natuna will be competitive with that offered by Malaysia, he said. (emb)