Tifatul urges development of northern Indonesia's economic potential

Chairman of the PKS Faction in the Indonesian MPR, Tifatul Sembiring, is encouraging the development of the ‘Northern Economy’ or the northern part of Indonesia in the fields of tourism, trade, and services. He stated that government attention has so far been too dominantly focused on Indonesia’s southern region. In fact, if the Indonesian economy is to advance, the northern region of Indonesia must be cultivated earnestly and more seriously. He explained a number of areas that could become an important part of the Northern Economy development, including Aceh, North Sumatra, Riau Islands, North Kalimantan, North Sulawesi, North Maluku, and Papua. Specifically for the Riau Islands, he said the area has a strategic position because it is close to the Strait of Malacca, one of the busiest shipping lanes in the world. According to him, more than 95 per cent of ships crossing from the Pacific Ocean to the Atlantic and vice versa pass through this important route. ‘All this time, Singapore has taken more profit from the passing ships. Singapore’s container throughput in 2024 alone reached 41.12 million TEUs (twenty-foot equivalent units) in a year. Because the Strait of Hormuz is closed, it has now risen to 65 million TEUs,’ he said. Therefore, if transport connections in Indonesia’s northern region are built, people will be more interested in coming to the area. Moreover, the region has natural beauty that is no less stunning than Bali in the south. ‘If the transport connections are good, of course people will flock to come. In terms of natural beauty, the northern regions are no less beautiful. There is Lake Toba, Sabang, beaches in Aceh like Lhoknga, Lake Singkarak, Lake Maninjau, Bunaken, Raja Ampat, and North Maluku,’ he said. In addition, he stated that the Riau Islands are positioned as Indonesia’s northern gateway. The province also has the opportunity to take a role in the container service sector, port services, and ship refuelling. ‘The Riau Islands are the northern gateway. Batam is only about 40 minutes from Singapore. Beside it is Karimun, which is also strategic and closer to the Strait of Malacca. Karimun can take a role, for example, in container services or refuelling ships that pass through,’ he said.