Govt to set up economic centers in eastern areas

Govt to set up economic centers in eastern areas

JAKARTA (JP): The government has decided to establish
integrated economic development centers in 13 provinces in the
eastern part of Indonesia to help bridge the development gap
between the western and eastern provinces.

State Minister of Research and Technology B.J. Habibie said
after a meeting of the Eastern Indonesia Development Council at
the Bina Graha presidential office yesterday that the government,
in coordination with local administrations, will speed up the
development process and attract private investors through the
centers.

The meeting was presided over by President Soeharto, who is
chairman of the council.

"The projected success story of such development centers
should be a special incentive and attraction for private
investors," Habibie said.

Habibie, executive chairman of the council, said most of the
fund needed for developing the centers is expected to come from
the private sector.

"Therefore, we need to give incentives, information,
assistance and guidance which can improve the efficiency and
productivity of those development centers," Habibie said.

He added that the possible incentives given to investors will
include the speedy licensing of investment projects in the
development centers and the establishment of competitive prices
for fuel and electricity.

To attract investors to the development centers, the council
plans to conduct dialogs with foreign and local businesspeople on
development in the eastern provinces.

"These areas are vast. Although they are rich in natural
resources, they still face serious human resource limitations,"
Habibie said.

Soeharto suggested that the development of the eastern
provinces should involve as many local people as possible, the
minister said.

Habibie noted that the slower pace of development in the
eastern provinces, compared to the western provinces, is caused,
among other things, by their smaller population and lack of
infrastructure.

Java and Sumatra have been leading during the last 25 years of
development because "they have more people and better a economic
infrastructure," Habibie said.

"That's why we established the Eastern Indonesia Development
Council to help reduce the gap between Java and other western
areas on the one hand and the eastern part of Indonesia on the
other," he noted.

He said the establishment of the development centers by the
council, in cooperation with local administrations, is expected
to reduce such gaps.

He added that the government has prepared three drafts of
rulings to be adopted as Presidential decrees, which will be used
as a legal basis for the establishment of the development
centers.

The proposed development centers include Biak in Irian Jaya;
Seram in Maluku; Betano, Natarbora and Viqueque in East Timor;
Ende in East Nusa Tenggara; Bima in West Nusa Tenggara; Menado
and Bitung in North Sulawesi; Batui in Central Sulawesi; Buton,
Kolaka and Kendari in Southeast Sulawesi; Pare Pare in South
Sulawesi; Das Kahayan, Kapuas and Barito in Central Kalimantan;
Samarinda, Sanga Sanga, Muara Jawa and Balikpapan in East
Kalimantan; Satui, Kusan, Gelumpang, Batulicin and Pulau Laut in
South Kalimantan; and Sanggau in West Kalimantan.

Soeharto suggested that in their development, the centers
should cooperate among themselves and with sub-regional growth
centers currently pursued by Indonesia and its neighboring
countries.

Yesterday's meeting was attended by Minister of Home Affairs
Yogi S. Memet, Minister of Forestry Djamaludin Suryohadikusumo,
Minister of Transportations Haryanto Dhanutirto, Minister of
Finance Mar'ie Muhammad and Minister of Mines and Energy Ida
Bagus Sudjana.

Habibie was accompanied by a number of his advisors at the
council, including Barnabas Suebu, a former Irian Jaya governor,
Achmad Amiruddin, a former South Sulawesi governor, and Alala, a
former Southeast Sulawesi governor. (rid)