Companies urged to participate in subregional areas
Companies urged to participate in subregional areas
JAKARTA (JP): Coordinating Minister for Production and
Distribution Hartarto said that the government plans to give top
priority to new projects in the 18 provinces linked to
subregional cooperation areas in order to attract more private
investment.
After installing his new assistants and expert advisors
yesterday, Hartarto said that cooperation among members of the
Association of Southeast Asian Nations (ASEAN) should be viewed
as an integral part of provincial and local development at home.
"Businessmen from the 18 provinces, together with the
provincial administrations, should make use of the cooperation
areas to accelerate the economic growth of the provinces," he
noted.
He added that the subregional cooperation groups developed by
Indonesia and five other ASEAN countries are meant to help
prepare the provinces for the year 2003, when the ASEAN Free
Trade Area (AFTA) is to go into effect.
"If they (local investors) are not ready, they should create
synergy with more established businessmen from other provinces,
particularly from Jakarta."
Hartarto also hinted that the government is planning to
announce fiscal incentives on Thursday to bring more investors
into the 18 provinces.
Today, Indonesia is part of three subregional economic
cooperation groups, formerly known as growth triangles, with all
of ASEAN's members except Vietnam: the Indonesia-Malaysia-
Thailand Growth Triangle, the Indonesia-Malaysia-Singapore Growth
Triangle and the Brunei-Indonesia-Malaysia-Philippine East ASEAN
Growth Area.
The 18 provinces participating are Aceh, West, North and South
Sumatra, Riau, Bengkulu, Jambi, Lampung, four provinces in
Kalimantan, four provinces in Sulawesi, Maluku and Irian Jaya.
No harmony
Hartarto recognized that local businesses in the 18 provinces
and the provincial administrations have yet to harmonize their
perceptions of the arrangements.
Success in the areas will depend on a conducive business
climate created by the government and active private
participation.
Hartarto said that only four of the 18 provinces have shown
positive developments, which he attributed to good coordination
between provincial government officials and private sector
companies. They are West and North Sumatra, Riau and West
Kalimantan.
To promote greater private sector participation, Hartarto's
office has invited the Indonesian Chamber of Commerce and
Industry and its provincial offices to join a forthcoming
coordination meeting on Sept. 19.
President Soeharto is expected to open the meeting, which will
be attended by the governors from the 18 provinces. (alo)