Tue, 22 Feb 2011

Bogor, West Java (ANTARA News) - Indonesia plans to reduce exports of raw materials through efforts to process the materials at home to increase the value of its exports.

Chief economic minister Hatta Rajasa made the statement at a press conference held on the sidelines of the government`s working meeting here on Monday on acceleration of Indonesian economic development opened by President Susilo Bambang Yudhoyono.

"In essence we wish to accelerate and expand economic development in which all sectors and 18 main focuses are integrated regionally. In the future we do not wish to only export raw materials and for that each region must have prime products and therefore infrastructure and manufacturing development will be done based upon regional potentials," he said.

This was one of the issues discussed at the meeting that would last until Tuesday, he said.

He said the government plans to develop six economic growth corridors namely the Sumatra, Kalimantan, Java, Bali, Nusa Tenggara, Sulawesi, North Maluki, Papua and Maluku corridors.

"There are three pillars in the corridors namely infrastructure, connectivity and human resource development and science and technology development," he said.

He said "some investment is therefore needed. We want to focus on domestic investment from first state-owned companies. The president wants commitments. The funds that have been discussed several times lead to six corridors with investment worth US$90 billion to be put in infrastructure, airports, railway and toll road development. That is what is meant by acceleration."

With regard to implementation Hatta said a team would be established to monitor the implementation and problems met during the process so that they could be settled quickly and correctly.

"There will be task forces assigned based on corridors in which there are also sectors," he said.

Hatta said in the economic acceleration program there are eight main programs and 17 main economic activities.

The eight programs include industry, agriculture, mining, energy, marines, tourism, information and telecommunication and strategic zone development.

The 18 activities meanwhile cover manufacturing industry involving products such as steel commodities, food and drinks and other commodities, mining that includes nickel, copper and other commodities.

Based on the commodities infrastructures and locations needed for their development would be developed, he said.

Regarding constraints such as regulations for land acquisition for public-private partnership projects Hatta said he hoped they could be finished within six months.

"We must address the law problems and settle them maximally within six months. Regulatory problems can be settled quickly. The essence is all obstacles hindering the program must be eradicated," he said.