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)