Realization of 20 megaprojects

Coordinating Minister for the Economy Dorodjatun Kuntjoro Jakti has reportedly disclosed that 20 national megaprojects worth US$300 billion will be implemented between now and 2005. This positive news has emerged amid an increasing number of corruption cases.

At least three megaprojects will be undertaken with the support of Japanese assistance in 2002. The three big projects involving US$1.3 billion in investments consist of a petrochemical plant in Tuban, the Paiton III and IV power plant extensions in Probolinggo and the Tanjung Jati power plant, all in East Java.

Japan has promised to disburse the financial assistance for the three projects between June and September of this year, said Dorodjatun during discussions with businessmen grouped in the East Java Regional Chamber of Commerce and Industry (Kadinda) in Surabaya recently.

He said Japan had shown great interest in financing the megaprojects thanks to its satisfaction on seeing the completion of the Paiton project without involving brokers.

The problem now is how to maintain the momentum and the critical attitude of Indonesian lobbyists so as to speed up recovery from the economic crisis. The resumption of construction work in these megaprojects should make a big contribution to the country's foreign exchange earnings, besides creating jobs for local workers.

In various cases, government representatives or national businessmen in foreign investment companies have tended to be passive or easily satisfied with the percentage of their shares. There is an impression that they lack a critical attitude, for instance, towards the possibility that foreign investors will buy imported products from their country or companies at high prices, higher than the prevailing prices.

Thus, the ability to attract foreign investors should be followed up by a critical attitude towards every development in companies so as to avoid a further prolongation of the crisis.

-- Bisnis Indonesia, Jakarta