Tue, 06 Jun 1995

Serang seaport work must start soon: Soeharto

JAKARTA (JP): President Soeharto called yesterday for the immediate commencement of work on the construction of a commercial seaport in Serang, West Java, to support the rapid growth of industrial activity in the province.

"The immediate construction of the seaport in West Java is vital to facilitate the rapid growth in the province's industrial activities." the President was quoted as saying by Minister/State Secretary Moerdiono.

Soeharto made the call during a special meeting with Moerdiono, Minister of Transportation Haryanto Dhanutirto, State Minister for Development Planning Ginandjar Kartasasmita, State Minister of Investment Sanyoto Sastrowardoyo, Minister of Public Works Radinal Moochtar, Minister of Agriculture Sjarifudin Baharsjah, Minister of Forestry Djamaludin Suryohadikusumo and State Minister of Agrarian Affairs Soni Harsono.

Moerdiono said that the planned seaport in Serang was intended to support the projected rapid growth in exports from industrial zones to the west of Jakarta, including Tangerang, Serang and Cilegon, while Tanjung Priok port in Jakarta would serve exports from industrial zones to the east of the capital, such as Bekasi and Kerawang.

Exports from those industrial zones are expected to rapidly grow in the next few years as a result of the massive growth in foreign and domestic investment in the province.

Last year, foreign investment approvals exceeded US$23 billion, constituting almost half of the total foreign investments approved during the last Fifth Five Year Development Plan (Repelita V) period, which ended in March 1994.

Most foreign and domestic investors in Indonesia opt to base their industrial operations in the industrial zones of West Java, such as Bekasi, Kerawang, Tangerang, Serang and Cilegon.

Foreign investments are expected to continue growing on the impact of the government's increasingly open investment policies. By the end of the first quarter of this year, foreign investment approvals had already reached $13 billion.

"If a new seaport is not immediately constructed, there will be, not only massive traffic jams in the capital, but also a stagnation of export activities," Moerdiono said, referring to the President's views as expressed during the meeting.

Goh

Moerdiono said the President had discussed the seaport project with Singaporean Prime Minister Goh Chok Tong during his recent visit to Jakarta.

He did not say what the Singapore prime minister's response had been. He did say that the President had instructed the minister of transportation to immediately study the planned seaport project.

Minister Radinal was also asked during the meeting to improve the condition of the roads linking the capital with nearby industrial zones and the planned seaport.

The seaport in Serang is one of the projects worth $2.01 billion being proposed by PT Pelabuhan Indonesia, the state-owned firm which manages and operates seaports in the western part of the country, for construction during the current five year development plan (Repelita VI).

Amir Harbani, the company's president, told the House of Representatives in a recent hearing that the construction of the Serang port, which will be located in the Bojanegara district, was likely to cost $500 million.

The other projects planned include an expansion of the Tanjung Priok port and the reclamation of a 500-hectare strip of coastline along Jakarta's north coast.

During yesterday's meeting, the President also instructed the cabinet ministers to seek an immediate solution to the growing need for clean water in the capital and its surroundings. (hen)