Investment endangers Greater Jakarta

Investment endangers Greater Jakarta

JAKARTA (JP): The rapid growth of investment by companies in
Jakarta poses serious problems for both the city and its West
Java environs, a high ranking official believes.

Land use, employment, water and raw material supplies and
infrastructure are among the problems surfacing in Jakarta's
surrounding areas, Ragam Santika, the secretary to the West Java
provincial administration, said on Monday.

Also, the relocation of large and medium-sized industries to
West Java raises problems regarding migration, the flow of
expatriates and environmental impacts. However he did not
elaborate.

The Antara news agency reported from Bandung that Ragam was
addressing a meeting between the investment coordinating boards
of both Jakarta and West Java.

On Thursday Ery Chajaridipura, the chairman of Jakarta's
Investment Coordinating Board, said that about 40 percent of
planned investments and expansion projects in Jakarta have been
canceled and relocated, mostly to Tangerang and Bekasi.

Both areas have industrial estates and good infrastructure
facilities.

The Board's secretary Mochtar Ollong had said that this year,
as of Sept. 15, domestic investment approvals in the city totaled
158 projects worth Rp 12.8 trillion (US$5.47 billion). Foreign
investment approvals reached 265 projects worth $24.2 billion.

Ragam said "coordinated management" is needed to ensure
"favorable efforts and programs by both the West Java and Jakarta
administrations," as areas in West Java have turned into
alternative industrial and residential sites.

The report did not say whether Ragam commented on suggestions
by former environment minister Emil Salim, that the rapidly
growing Greater Jakarta area should be put under one umbrella
authority.

Recently State Minister of Agrarian Affairs/Chief of the
National Land Agency Soni Harsono, said the size of industrial
estates in West Java which have gained permits from his office
exceeds 25,000 hectares. The area is considered sufficient until
2000, so no new permits will be issued, he said.

The two-day meeting, which ends today, was also attended by
officials of the Jabotabek (Greater Jakarta) Coordinating Board.
(anr)