For REGENCY PROFILE/July 23, 2002

For REGENCY PROFILE/July 23, 2002

Main story

Ready to welcome investors, buyers and tourists

Regional autonomy, introduced to the country two years ago, has waken up most regency administrations from their long sleeps.

Bantul regency, one of several regencies in the Special Province of Yogyakarta, is no exception. Regional autonomy and political reform have colored many aspects of people's lives in Bantul.

The regency head, or regent, and his deputy were, for example, among the first of the country's regents elected shortly after the implementation of regional autonomy which gives the people the power to choose their own leaders and manage their own economy and natural resources.

In regard to the economy, Bantul regency has initiated a number of projects in an effort to further improve the welfare of its people.

The Bantul Satellite City, or BKM, is one such project. The township will be established in stages, and will occupy several zones in Krebet hamlet, Sendangsari village, Pajangan district.

PT BKM, which manages this satellite city, will provide only the land, which will be sold to the public, businesspeople and educational institutions. The company will invite investors to carry out construction on the land.

The land designated for this satellite city covers about 1,200 hectares, most of which are still owned by local residents. About 250 hectares of the land has been cleared to pave the way for construction of the first stage of the project.

The company has spent about Rp 80 billion (about US$9.45 million) for the clearance of the land, which has been offered to various institutions and companies.

Today, the project is drawing quite a lot of interest. Many companies and private universities in Yogyakarta have placed their orders thanks to the strong support from the governor of Yogyakarta, Sri Sultan Hamengkubuwono X.

The second assistant to the Bantul regent, Gendut Sudarto, said BKM is jointly managed by PT BKM, a limited liability company established by the Bantul regency administration, and PT Perwita Karya as the investor. The capital is expected to be made available from the sales of the company's shares to the regency administration, investors and financial institutions.

PT BKM has hired the Jakarta-based PT KIAT property consulting company, which has been involved in the development of the country's top residential areas, including Ancol and Bumi Serpong Damai in Jakarta.

With a well thought out plan, it is expected that BKM will become a center of business for the people of Bantul in particular, and the people of Yogyakarta in general.

According to the master plan, BKM will be divided into zones for specific purposes, such as business, residence, education, sports and so forth.

The residential areas will be further divided into several categories: luxury, modest, low-cost and lower-cost. The businesses on the this estate will be confined to environmentally friendly companies, such as those dealing in packing, warehousing and electronics.

To ensure that this satellite city will be well regulated, a regional regulation will be issued on the detailed plan for the spatial layout of the development in Pajangan district.

Land clearance must gain the approval of all the locals concerned, while the construction of houses must comply with existing regulations. Besides, the Bantul regency administration has also set up an advocacy team comprising all relevant parties in the regency to monitor the project.

"Although the clearance of land for the BKM does not involve compulsion, locals must comply with the BKM master plan when constructing their houses. Luckily, until now all locals have agreed to sell their land for this purpose," said Sudarto.

The establishment of this satellite city is expected to provide lots of employment opportunities for the people of Bantul, particularly those in the Pajangan and Kasihan districts, from the planned operation of a market, a shopping center, universities, companies and so forth in the area. Subsequently, boarding houses, restaurants and other undertakings will also spring up.

"In short, BKM will improve the welfare of the people and increase the revenue of the regency administration," he stressed.

Meanwhile, the chairman of the Indonesian Democratic Party for Struggle (PDI Perjuangan) faction in the Bantul legislative assembly, Djoko Purnomo, who is also the chairman of the legislative assembly's Commission A, said his faction supported the establishment of BKM as it was in tune with the religious and democratic vision and mission of the Bantul administration.

The legislative assembly of Bantul has also set up a special committee to follow up the plans for the establishment of BKM. It has also ratified the agreement between the regency administration and PT Perwita Karya on the setting up of PT BKM, which will manage BKM.

BKM will have one elite area that will be strictly developed on an environmentally friendly basis. This area will have in it, among other things, a luxury housing compound, medium and low- cost houses, elementary and secondary schools, universities, markets, shopping centers, a hospital, sports facilities and so forth.

Separately, Sendangsari village chief, Sapto Suroso, said that the land designated for the project was ready for clearance. The first-stage of land clearance, involving some 200 hectares to 300 hectares, has been completed.

Realizing that a lot of investment is needed to improve the regency's economy, the Bantul regency administration has prepared a number of incentives to lure investors.

Besides providing administrative convenience, the local administration has established Sitimulyo village in Piyungan district as an industrial estate.

Currently, dozens of companies have registered to set up factories in this area, which is about 15 kilometers east of Yogyakarta. Many more companies are expected to follow suit. The location provided is ideal for an industrial estate.

The Bantul regency administration is also working on establishing a harbor at Pandansimo beach. The construction of the harbor is quite promising. Geographically located near the Indian Ocean, the planned harbor is ideal for fishing related industries.

Today, the number of fishermen in the area is growing rapidly. Their huge -- hundreds of kilograms -- catches of white pomfret and other fishes are mostly exported.

The fishermen's work is slightly hampered by the unavailability of a proper harbor. In the future, once the new harbor is built, all related businesses will certainly thrive, as the contents of the Indian Ocean are unlimited.