West Nusa Tenggara to woo investors despite obstacles
West Nusa Tenggara to woo investors despite obstacles
DILI, East Timor (JP): West Nusa Tenggara (NTB), one of the
poorest provinces in Indonesia, is determined to woo investors
despite prevalent obstacles in developing the region.
"This province actually has potential to attract investments
because it is located near major tourist areas like Bali, Komodo
Island and Toraja in South Sulawesi," said NTB Governor Warsito
here recently.
Warsito said that the province, located in Indonesia's less-
developed eastern region, is also on the trade route between
Surabaya in East Java and Ujungpandang, the capital of South
Sulawesi.
"We must intensify our efforts to woo investors," said the
governor, who added that investments are prioritized on the
agricultural, tourism and infrastructure development sectors.
Warsito mentioned that as well as a lack of modern
infrastructure, the province's population is not spread evenly --
two factors which hamper investment growth in the province.
Out of NTB's 25 million people, about 76.5 percent reside on
Sumbawa Island and 23.5 percent live in Lombok, he said.
The difficulty in wooing investors to the province is
reflected in the low realization rate of investment projects.
Government figures show that in the last five years,
investment realization reached only 22.7 percent or Rp 296
billion (US$134 million) of the total domestic investment
commitments of Rp 1.3 trillion, employing about 1,800 people.
Realization of foreign investments even reached only 4.7
percent, or $2.57 million, out of the $53.6 million originally
proposed.
State Minister of Investment/Chairman of the Investment
Coordinating Board Sanyoto Sastrowardoyo recently proposed to the
House of Representatives (DPR) to allow provision of special
incentives for investments committed in the country's eastern
provinces.
Such incentives should include low interest rates and a higher
credit ceiling for regional chapters of state-owned banks to make
decisions on loans, Sanyoto said. (yac/hdj)