Old town Purwakarta means business

Old town Purwakarta means business

Purwakarta in West Java and one other city have been declared
the most attractive investment destinations in the country for
2004, according to an annual survey conducted by
the Regional Autonomy Watch. The Jakarta Post's Yuli Tri Suwarni
toured the city to find out what makes Purwakata a winner, and
filed the following report.

Back in the 1980s, Purwakarta was dubbed the "pensioner's town"
since many officials or civil servants preferred to spend their
retirement days in the city.

"This place has a cool and quiet atmosphere, far from the busy
metropolis. It's the perfect place for senior citizens or those
seeking a quieter life," said Yukita Rosa Rangkuti, a 29-year-old
Purwakarta resident.

Measuring 971.72 square kilometers, its territory starts
southward toward Bandung from an intersection at the end of the
Jakarta-Cikampek toll road.

Now thriving with diverse industries, Purwakarta is also known
as an agricultural district as 70 percent of its 730,000 people
depend on farming and breeding livestock for a living.

The first industries, according to Purwakarta Deputy Regent
Dedi Mulyadi, were established in 1976.

"As far as I remember, the first factories set up here were
the Indorama and Indachi textile fiber mills. Over the years,
more industries have emerged," Dedi told The Jakarta Post.

The steady growth of industries caused the local
administration to reconsider the city's image, making it the
industrial city.

Its strategic location and solid infrastructure are
Purwakarta's highest selling points as an industrial area.

From Purwakarta, Jakarta is only 50 minutes away via the
Jakarta-Cikampek toll road, while the Soekarno-Hatta
International Airport can be reached in 80 minutes and Tanjung
Priok port in 60 minutes. West Java's capital of Bandung is two
hours drive.

The town's goal to be known as a city of industries became
closer to realization with the construction of Kota Bukit Indah
Industrial City, better known as Bukit Indah City (BIC) in
Bungursari district, managed by the Salim Group conglomerate.

The BIC operator, with its slogan: The Right Choice for Your
Factory in Indonesia, had constructed factory spaces starting
from 1,000 square meters as well as building the four-star
international Radisson Hotel in the zone.

"Due to the growth of industries, we have come up with a
strategy to make Purwakarta an attractive place for domestic as
well as foreign investors, such as by cutting red tape and
facilitating the issuance of business licenses," said Dedi.

By streamlining regulations and bureaucracy, the issuance of
business licenses could be made in less than 14 days, except for
industries that are considered detrimental to the environment.

"We also place field officers in the area, under one roof with
the area operator, who are receptive toward any problems faced by
the businesspeople," said Dedi.

The West Java governor designated the area as an industrial
zone in 1990, allocating 2,000 hectares of land in Bungursari and
Babakan Cikao districts. The area was later expanded to 3,187
hectares, encompassing Campaka, Cibatu, Purwakarta and Jatiluhur
districts.

From the onset, large factories produced textile fiber and
later developed into electronics components, automotive parts,
garment, paper, plastic, rubber foam, food processing and soft
drinks manufacturers.

According to Dedi, every industry, big or small, is being
treated equally in the process of procuring permits.

The city hosted a total of 170 large industries in 2004,
absorbing a workforce of 44,119 people, as well as the small
formal and informal industries totaling 909 and 2,336
respectively, employing more than 40,000 people.

Apart from its straightforward bureaucracy and its strategic
location, according to deputy chairman of West Java's Indonesian
Employers Association, Ari Hendarmin, Purwakarta also wins
investors' hearts with its tight security.

"We rarely hear of negative security situations or labor
protests. Even a small conflict would catch our attention, but
few such incidents have been reported," said Ari.

Dedi said it is not easy to make investors feel at home, but
adopting a personal approach had proven to be worthwhile.

For instance, officials, including Regent Lily Hambali and
Dedi himself, regularly showed up with businesspeople at
functions organized by local people, from visiting the sick to
paying condolences to the deceased or attending weddings or
circumcision ceremonies.

Moreover, the administration prevented possible labor protests
by setting two categories for the minimum wage in 2005. The wage
set for the labor-intensive sector is Rp 580,000 per month and
the capital-intensive, Rp 612,000 per month.

The total foreign investment in Purwakarta reached US$2.751
billion in 2004, while domestic investment accounted for Rp 474
billion.

Even though the industrial sector dominates almost 50 percent
of regional revenue, around 70 percent of the people still depend
on agriculture and fishery for a living.

"As shown in our emblem, which incorporates the Jatiluhur dam
and Buleud reservoir as symbols of prosperity, we are still an
agricultural society," Dedi said.

Although industrial growth has turned Purwakarta from a
"pensioner's town" into an attractive place for investment, the
administration will still evaluate the industries now in
operation.

"We wish to expand public spaces and plan an atmosphere that
can make industrial workers more relaxed. They need recreation so
that the character of the town does not die with its success in
industry."