Prosperous Kutai revives past glory

The scenario sounds too good to be true. Every child gets a free education. Farmers get subsidies and interest-free loans. Civil servants are entitled to free medical care. Veterans and the elderly receive special allowances, while every village is equipped with excellent transportation facilities, training centers and adequate business infrastructure.

"There will be no more poverty and backwardness in my regency!" exclaimed H.M. Syaukani, Regent of Kutai Kartanagara, a newly established regency in the oil-rich province of East Kalimantan.

Blessed with an abundance of oil and natural gas, coal, wood, fish, plantations and agricultural commodities, the regent might not be dreaming. The idea was to make Kutai Kartanagara residents prosperous just like their ancestors.

In the fourth century, it was the site of the ancient Hindu Kingdom of Kutai, historically known as a powerful and wealthy kingdom blessed with an abundance of gold, gems and food resources. Its people were peaceful and happy, according to the literature.

But after the kingdom's glory faded, its people were plunged into deep misery. Abandoned and isolated, the people of Kutai were powerless as outsiders exploited their natural resources, leaving the locals in poverty.

During each period of domination and exploitation by neighboring kingdoms, warlords and later the Dutch, their assets were taken from them and sent back to the respective capital cities. When the vast archipelago from Sumatra to Maluku declared itself to be a single nation-state, Indonesia, in l945, and forced the Dutch out, the fate of the Kutai people still did not improve. The New Order regime between l965 and l998 only continued what other colonizers had done, taking their resources and sending the profits to Jakarta, so their misery continued.

Through its oil, natural gas, coal and forestry resources, Kutai Kartanagara contributed millions of US dollars to lots of pockets in Jakarta and elsewhere.

This sad story might finally have a happy ending, however. Since the central government launched the regional autonomy project in January 2001, the people of Kutai Kartanagara have been fighting to make amends for centuries of exploitation.

"Autonomy is not a matter of transferring the rights or power," defended regent Syaukani. It is more a decentralization process which enables local authorities and the people to develop natural and financial resources as well as to empower the people.

"We want all development programs to directly benefit our own people," said Syaukani, also chairman of the Indonesia's Local Authorities Associations. Looking at what Syaukani and his people have done so far would make the country's poorer, or perhaps corrupt, regencies green with envy.

During the four-day Otonomi Expo 2002 at the Bali International Convention Center (BICC) in Nusa Dua last weekend, Kutai Kartanagara regency displayed its vast array of handicrafts, agricultural products, mining and energy prospects in a spacious and well-decorated booth.

At the booth, which was awarded the best booth at the expo, officials from the regency's offices provided all visitors with glossy brochures, catalogs and pictures about its development programs and its industrial capacity and tourism facilities in one package.

Compared to other participating regencies, Kutai Kartanagara was light years more prepared to lure visitors and investors.

Kutai Kartanagara has been enforcing a new development program called Gerbang Dayaku, meaning reaching their potential, in human resources, in important infrastructure and other supporting facilities. The program focuses on a village development program, small-scale businesses, education, health and poverty eradication.

In education, the regency has launched a special program, free-for-all public education from elementary to high school, in line with most other countries in the world. With the program, there will be no reason for parents not to send their kids to school. Facilities and special incentives are also available for school principals and teachers. Scholarships are available for administrators, teachers and university students wanting to take advanced or post-graduate studies.

Meanwhile, the regency's village improvement project covers around 197 villages. In 2001, each village was entitled to a Rp 1 billion fund to facilitate various projects like road and bridge construction and other key infrastructure, human resources and small-scale business development.

Around Rp 100 million out of the total was allocated for interest-free loans for small-scale and home industries. The remaining balance was allocated for education and other human resource development programs.

Starting in 2002, the amount was increased to Rp 2 billion for each village. The allocation for interest-free loans was also raised, to Rp 500 million.

It is intended for farmers to update their machinery or for small-scale entrepreneurs to expand their businesses.

With such an ambitious program, the regency is now relying on its agriculture, its mining and energy potential, and forestry and fishery sectors to make it profitable.

In the agricultural sector, the regency has 140,000 hectares of arable land for rice. It has also 404,541 hectares for palm oil plantations producing some 19,000 tons a year.

Pepper is another prime commodity. Kutai Kartanagara produces around 12,000 tons of pepper annually. Mining and Energy has generated millions of US dollars in revenue.

PT Badak NGL Co is now exploring liquefied natural gas with a total production of 16.439 million barrels per year. Coal production, managed by seven companies, nets 21.93 million tons per year. Other companies include Unocal, which is exploring the oil and gas potential.

It would be great if Kutai Kartanagara could become an example for other regencies in Indonesia in adopting regional autonomy for the benefit of the people. The central government would do well to promote the regency as its top success story so that other regencies will follow. -- Rita A. Widiadana