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."