Tue, 12 Apr 2011

Jakarta (ANTARA News) - Coordinating Minister for Economic Affairs Hatta Rajasa confirmed here on Monday the development of six special economic corridors would begin in June this year.

"Everything relating to infrastructure development will be intensified and there has been commitment to carry out quick win investment acceleration program and as of June ground breaking must be done to start the development," he said when met for his statement on the project after a coordination meeting on it here on Monday.

For that, Hatta said the government would set up a special team under the coordination of his office to monitor licensing processes to assure development will finish in time.

"The licensing process will remain based on principles of accountability and transparency. There must be no hindrances that could delay development and therefore a special team would be set up to assure its smooth process," he said.

Hatta said several concepts had been made leading to adjustments on the master plan of the corridors such as for Sumatra which is to be focused on development of palm oil, rubber, coal, industrial forests and sustainable forests.

"The essence of the master plan formulation is sharpening the focus of each corridor. The theme and focus are for development such as for Sumatra the focus will be palm oil, coal, rubber, industrial forests and three million hectares of sustainable forests," he said.

The chairman of the National Economic Committee (KEN), Chairul Tanjung, said he hoped the master plan could be finished in May followed by the issuance of a Presidential Regulation or a Presidential Decree on economic corridor development.

"So we just now decided that the master plan must be finished in May and it may be put into a presidential regulation or decree," he said.

He predicted the project would take around Rp300 trillion in the next four years from the state-owned enterprises, national and foreign private businesses.

"The funds will only be for big projects worth above Rp1 trillion excluding the small ones. If detailed identifications are made it could reach Rp4000 trillion. And if small projects are included the funds could be two to three times bigger than the funds presently available," he said.

Regarding tax holiday for private investors wishing to participate in the project, Finance Minister Agus Martowardojo said a thorough and objective study still had yet to be made before it would be implemented.

"A tax holiday is not general in nature. A tax holiday must be linked with minimum investment requirement. If we feel it needs to be done it should be discretionary, specifics, and an objective study has to be done first before it is implemented," he said.

The minister said the government would give stimulus to businesses in the form of easy licensing and infrastructure availability.

"So that is what we are going to do. Here we have been talking about all `debottlenecking` elements with regard to assuring swift implementation," he said.