Indonesian Political, Business & Finance News

Rich provinces told to help poor ones

| Source: JP

Rich provinces told to help poor ones

Fabiola Desy Unidjaja, The Jakarta Post, Jakarta

To ensure equal development in the country following the
implementation of regional autonomy, President Megawati
Soekarnoputri called on resource-rich provinces to help the rest.

Speaking at the opening ceremony of the Sumatra governors
meeting in Jambi on Wednesday, Megawati asked the provinces to
help each other to guarantee a fair distribution of wealth.

"Resources-rich provinces should help the less rich provinces,
so that all Indonesians have an equal chance of improving their
welfare," the President said her speech.

She said the implementation of regional autonomy should bring
equal prosperity across the country and should not widen the gap
between the rich and poor provinces.

Since regional autonomy took effect on Jan. 1, 2001, Megawati
has repeatedly said it could spark national disintegration and
unequal development in the country.

Autonomy provides more rights for each province and bigger
shares of revenues, especially from natural resources.

However, in Indonesia not all provinces possess adequate
natural resource potential, relying on financial support from the
central government.

In her speech the President renewed her call on the provinces
to take advantage of regional autonomy to reduce dependency on
Jakarta and carry out their responsibilities.

"We should all be aware that regional autonomy not just
provides more rights for the regions to control themselves, but
also bears more responsibility."

Megawati's visit to Jambi was greeted by student rallies. They
demanded the President step down over her unpopular policy to
increase utility fares.

Megawati has canceled all planned visits to several provinces
as anti-government protests escalate.

In her speech, Megawati apologized for the cancellations
saying the worsening political situation required her presence in
the capital.

"I am sorry, but as you all know that the country's situation
needs special attention to prevent the worst."

The two-day event in Jambi was aimed at increasing cooperation
among provinces in Sumatra and to find more concrete economic
cooperation to develop the regions.

Sumatra's provinces planned to build an airline company and a
joint promotion board to lure both domestic and foreign investors
to the island.

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