Sulawesi wants funds for infrastructure

Sulawesi wants funds for infrastructure

Rendi A. Witular, The Jakarta Post, Jakarta

Governors from six provinces on Sulawesi island have called on
the government to help them provide infrastructure for businesses
and agricultural activities to enable the island to be
economically self-sufficient.

Gorontalo Governor Fadel Muhammad said on Wednesday that
Sulawesi would need around Rp 5.5 trillion (US$535.5 million)
over the next three years for irrigation, water pumps and inter-
provincial roads connecting the whole island.

"Sulawesi has to build infrastructure to support businesses
and the agriculture sector to cut its dependency on other
islands," he said. "We are optimistic that we can be independent
as an island."

The request was delivered in a special meeting between the
governors and Vice President Jusuf Kalla. Aside from Fadel, the
others were South Sulawesi Governor Amin Syam, North Sulawesi
Governor Sinjo H. Sarundayang, Central Sulawesi Governor
Aminuddin Ponulele, Southeast Sulawesi Governor Ali Mazi and
acting governor for newly established West Sulawesi, Oentarto
Sindung Mawardi.

Fadel said the proposed funds could come from enlarging
general allocation funds (DAU) from the government to the regions
or by assisting the provinces to seek loans from banks or issue
bonds.

As reported on Wednesday, regional administrations are allowed
to issue bonds and seek loans from domestic banks starting next
year, following the issuance of the necessary ancillary
regulations later this year by the government.

At present, regions can only depend on the DAU facilities for
additional financial resources. Based on the existing law,
provinces can receive a minimum of 25 percent of the state
budget's domestic revenue, a figure that will be raised to 26
percent in 2008.

Although Sulawesi has abundant natural resources, the island
is still underdeveloped compared to Java and Sumatra mostly due
to lack of sea, air and land transportation access.

South Sulawesi is known as the country's rice barn while North
Sulawesi and Central Sulawesi are rich in marine resources and
export-oriented agricultural produce such as vanilla, coconut,
clove, nutmeg and cocoa.

Sulawesi is nearly as big as the United Kingdom, but its
population accounts for only 7 percent of the country's total
population of some 235 million people.