Govt to push investment in eastern Indonesia

Adianto P. Simamora, The Jakarta Post, Jakarta

The government is planning to provide special incentives to lure investors to invest in the eastern region of Indonesia as part of efforts to help expedite economic development there, according to State Minister for the Acceleration of Development in Eastern Indonesia Manuel Kaisiepo.

"I think there are no other options, the government must provide special incentives for investors in Eastern Indonesia to offset the poor infrastructure in this area," Manuel told a press conference following an investment forum.

The forum was organized by PT Harvest International Indonesia.

Manuel said that the investment incentives would include a tax holiday facility.

He explained that his office had proposed various measures to accelerate economic development in the Eastern Indonesia region, which had been left behind compared to other regions during the more than 30-year rule of president Soeharto.

The proposed measures include special incentives to attract badly needed investments.

"We have submitted the draft of our grand strategy to accelerate the development of Eastern Indonesia to President Megawati Soekarnoputri and we hope Megawati will approve it in July," Manuel told reporters.

Accelerating economic development in eastern Indonesia is seen as a crucial approach to help ease rising separatist demands in the region.