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)