West Sumatra to enter two growth triangles
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)