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)