West Sumatra to enter two growth triangles
JAKARTA (JP): President Soeharto wants to include West Sumatra in two sub-regional cooperation areas, involving Singapore, Malaysia and Thailand, to spur economic growth in the province, Coordinating Minister of Industry and Trade Hartarto says.
After reporting to President Soeharto on the development of sub-regional cooperation, Hartarto told journalists yesterday that the president decided to include West Sumatra given the plan's potency.
"It surely will propel economic growth in West Sumatra because, even though it is not yet included in any of sub- regional cooperation areas, a number of investors from Johore of Malaysia have entered this province," Hartarto said.
Earlier this month, along with Malaysia's Minister of International Trade and Industry Rafidah Aziz and Singapore Deputy Prime Minister Lee Hsien Loong, Hartarto signed a pact to formalize a growth triangle, encompassing Singapore, Johore and Riau province, to boost cross-border economic ties.
However, in the next ministerial meeting in Pekanbaru, Riau, in February 1995, Indonesia will include West Sumatra in the Indonesia-Malaysia-Singapore Growth Triangle (IMS-GT), Hartarto said.
In addition to IMS-GT, Hartarto noted, President Soeharto also decided to include West Sumatra in the Indonesia-Malaysia- Thailand Growth Triangle (IMT-GT). Therefore, in the part of Indonesia, the IMT-GT will cover not only North Sumatra and Aceh, but also West Sumatra.
Benefits
According to a feasibility study conducted by the Asian Development Bank, the northern part of Sumatra will benefit the most from the IMT-GT.
"Therefore, we have to take immediate action to accommodate the benefits of cooperation in various sectors, such as those in agriculture, especially in plantations, and the electronic industry, between Penang in Malaysia, and Belawan in North Sumatra," Hartarto said.
He said Indonesia, Malaysia and Thailand have also agreed to link their areas by opening new air routes to spur tourism.
In this sector, the inclusion of West Sumatra will give more benefits as it has many tourist attractions, such as the Dutch- style town Bukittinggi with its canyon, old Batusangkar with its museum, Padang Bay and many more picturesque destinations, he said.
Hartarto yesterday also reported to President Soeharto about the development of the eastern growth cooperation area, involving Brunei, Indonesia, Malaysia and the Philippines. Indonesia incorporates West and East Kalimantan as well as North Sulawesi in this cooperation area.
In a ministerial meeting in Manado, North Sulawesi, earlier this month, the four countries agreed to accelerate numerous trilateral and bilateral business deals by improving air and water transportation facilities.
"Each country has assigned their airlines to link the areas, and for Indonesia, we have assigned Merpati and Bouraq," Hartarto said, adding that an air transportation agreement will be formalized in the next ministerial meeting in Brunei next month.
He also noted that Indonesia and the Philippines is finalizing negotiations on sea links between Manado and Davao in the Philippines. (rid)