Waiting for Jakarta's quick action

Waiting for Jakarta's quick action

By Hyginus Hardoyo

Today, the people of Lampung celebrate the province's 37th
anniversary. Prior to government regulation number 3/1964 issued
on March 18, 1964, Lampung was a karesidenan (regency) under the
province of South Sumatra. Here The Jakarta Post presents the
trials and triumphs of this province.

JAKARTA (JP): All 31 provinces of the country are currently
grappling with the implementation of regional autonomy, an
ambitious scheme launched early this year with the aim of
defusing discontent of the people in the regions and the threat
of national disintegration.

The government insists the regions are capable of implementing
the plan, even though critics claim only regions rich in natural
resources are ready for it.

However, the lack of preparedness in its implementation has
caused confusion.

The unpreparedness is mainly due to inadequate information on
how to execute the regional autonomy in the regions.

Many regulations on decentralization were also late in
reaching local officials, thereby hindering them from making
decisions.

Despite the setbacks, all regions, including Lampung, are
eager to make the scheme a success because autonomy will give
them a greater say in the exploitation of natural resources in
their regions.

"For Lampung, autonomy does not constitute a gift, but a
challenge," H.R. Mochtar Sany F. Badrie, head of the Lampung
office of the Indonesian Chamber of Commerce and Industry, told
The Jakarta Post.

Speaking on the sidelines of a meeting with regents and
officials of Lampung province on Sunday, Mochtar said, as there
will no longer be subsidies from the central government, local
officials are required to use their talents in tapping existing
resources as effectively as possible.

With a total area of 35,300 square kilometers and with a
population of nearly 7.25 million people, Lampung is
strategically located in the middle of the Java-Sumatra line.

The province is accessible from Java by ferry or ship via the
Sunda Strait, or by airplane to Radin Inten Airport, which is
about 25 kilometers from Bandar Lampung, the province's capital.

Data on the utilization of natural resources, released by the
Lampung Central Bureau of Statistic's office (BPS Lampung), shows
that the province's economy depends heavily on agriculture. As of
March 1999, about 64 percent of its population is making a living
from this sector.

The province, which consists of eight regencies and two
mayoralties, is a major producer of agricultural commodities such
as palm oil, rubber, coffee, pepper, manioc, molasses, maize and
cloves.

It is home to large-scale oil palm, rubber and sugarcane
plantations operated by private and state-owned companies.

The central and southern parts of Lampung such as Pekalongan,
Metro, Talangpadang, Trimurjo, Palas, Pringsewu and Sidomulyo,
have fertile lands, making them the province's agricultural
center.

The province is also the third largest livestock supplier in
the country, after East and Central Java. It is one of the major
meat suppliers in Jakarta and West Java.

The eastern part of the region is suitable for breeding
shrimps and fishes in brackish water ponds.

Lampung is also rich of minerals such as coal, iron, gold,
silver, tin, manganese and uranium. In addition to the mining
sector, the province also has abundant marine resources. Most of
them have not been fully exploited.

It is worthwhile to note that Lampung has a large rainforest
rich in flora and fauna. Elephants, tigers and rhinoceroses are
some of its renowned fauna.

Elephants, tigers and rhinoceroses are successfully bred at
the Way Kambas National Park, which is also famous for its
elephant training school.

Despite its abundant resources, Lampung is classified as one
of the poorest provinces in Indonesia. BPS Lampung's data shows
that the per capita income in the province was only Rp 3.01
million (US$300 at the current rate) in 1999, up from Rp 1.37
million in 1996. By comparison the per capita income in Jakarta
reached Rp 14.5 million in 1999, up from Rp 9.07 million in 1997.

"Even though our province is not as rich as the others, I'm
proud to be a native of Lampung," Mochtar said.

"What we need now is accurate data compilation to utilize the
untapped resources. Without accuracy (of data), investors will
not be interested in entering our province," he said.

"Therefore we have to change our bureaucrats into
entrepreneurs. Everything has to be clear-cut and transparent for
the sake of meeting the principle of trade," he said.

A. Sjariffuddin Effendi, head of Lampung investment, culture
and tourism promotion, told the Post that the economic growth of
the province was projected to reach about 3 percent this year. It
reached 4.12 percent in 1997, but plunged to minus 8 percent
during the economic crisis in 1998.

"To meet the target, we need investments amounting to Rp 475
billion," he said.

He expressed confidence that the target could be realized
because in the first two months of this year alone his office had
approved several domestic investment projects with combined
commitments of about Rp 400 billion.

"The implementation of the investment projects depends mainly
on the political condition in the country," he said,
acknowledging that the current situation is not conducive to
doing business.

Both Mochtar and Sjariffuddin expressed concern over the
inability of the central government to contain the political
bickering among the elite as it greatly affected nearly all
aspects of live in the regions.

"How can businessmen invest if there is no security
guarantee?" Mochtar asked.

Lampung was too ambitious during the sixth Five-Year
Development Plan (1994/1995-1998/1999), declaring that it wants
to become an industrial development area. The industrial sector,
despite its growth, contributed only about 15 percent to the
local gross domestic product, far below the 31.29 percent from
the agricultural sector in 1997.

The province's exports were dominated by coffee (with foreign
exchange earnings of US$228.44 million in 1999), followed by
shrimps ($103.59 million), vegetables ($71.16 million) and pepper
($45.77 million).

The industrial development plan managed to attract
conglomerates from Jakarta to begin capital-intensive
agroindustry and agribusiness projects.

Initially it was believed such investments would benefit and
save marginal local farmers, but it did not live up to its
expectations. The Lampung resources were arbitrarily tapped with
profits sent to Jakarta, leaving only problems and wastes behind.

Ali Ibrahim, dean of the Agriculture School at Lampung
University, was quoted as saying in 1999: "Neglecting agriculture
is suicide. Those involved in the industrial development are only
laborers whose numbers are very limited. Farmers act only as
spectators."

His statement was backed by the fact that only a handful of
local people were employed in the agroindustrial estate in
Bakungudik and Gunungbatin villages. Others, who had "sacrificed"
their land to make way for the project, could only watch.

This imbalance ended in conflict. Disappointed locals
frequently destroyed and looted the estate, for example about 500
hectares of sugarcane plantation ready for harvest in the
Bakungudik village was burned down.

Until today, there are disputes over land ownership between
investors and local residents, prompting investors to relocate
their businesses to other regions.

Many large-scale companies, which created jobs and foreign
exchange earnings, have reportedly halted their operations here
due to security concerns.

"Investors were also disappointed that the local government
did not do anything to stop the disputes," an investor was quoted
by Antara as saying early this month.

Mochtar said such disputes could be settled if the central
government ended the political bickering among the elite.
"Political stability and security in Jakarta can influence the
regions," he said.

"Just maintain security in the country and investors will
automatically return to the regions," he reiterated.