Jakarta, Nov 7 (ANTARA) - The acceleration of infrastructure
development, particularly through the construction of routes such as the
Trans-Sumatra highway and Trans-Sulawesi railway, is a must to
implement the government's plan of boosting investment outside Java
Island.
The Capital Investment Coordinating Board (BKPM) plays a crucial role
in evenly distributing investment and speeding up infrastructure
development outside Java, particularly in Sumatra and in the eastern
regions of the country.
"We hope that the construction of the Trans-Sumatra highway, which will
pass through the Sunda Strait and connect the Sumatra Island with Java,
is completed soon. The population of Java has exceeded 100 million. For
future development, Sumatra should become the priority for the BKPM.
The board should explore the prospects of infrastructure development
here," said Refrizal, a member of the House of Representatives (DPR)
Commission VI on investment affairs, here on Tuesday.
Moreover, the government's plans with regard to investment procedures
have not yet been put in place. The government should play a more active
role in promoting projects to domestic and foreign investors. It should
do this as soon as possible if it wants to increase investment outside
Java," he added.
BKPM Chairman Chatib Basri stated on Tuesday that his agency would
continue to increase investment outside Java in an effort to ensure even
distribution of economic growth in the country.
"Apart from the oil and gas sector, investment outside Java Island is
negligible. That is because of infrastructure problems. But we hope
there will be balanced infrastructure development in Java and other
islands outside Java in the future," he said.
According to BKPM data, up to September this year, approximately 55.8
percent of total domestic investment, worth Rp36.6 trillion, was made in
Java. The island also attracted the highest foreign direct investment
(FDI) during the period, worth US$95 billion, accounting for nearly 52.5
percent of total FDI in Indonesia.
However, other islands such Maluku and Papua are lagging far behind,
with domestic investment worth Rp3.4 billion and Rp97.8 billion,
respectively, and FDI worth US$98.8 million and US$728.8 million,
respectively.
Therefore, the government is determined to promote infrastructure
development outside Java in an effort to boost investment in the region.
The government is planning two major projects, with a total budget of
nearly US$59.1 billion, which are expected to boost economic activities
between Java and Sumatra.
The
two mega projects are the 27.4 km Sunda Strait Bridge (JSS), which will
require an investment of US$27.8 billion, and the 2,000km Trans-Sumatra
toll road , which will cost US$31.25 billion.
Expected to boost transportation and economic development on the two
islands of Java and Sumatra, the two projects are scheduled to be
completed by 2025.
So
far, Sumatra and Java are linked through the Trans-Sumatra highway and
the ferry services between Bakauheni port (in the eastern tip of
Sumatra) and Merak harbour (in the western tip of Java).
The government is also stepping up efforts to implement infrastructure
projects in the eastern regions. One of such projects is the
Trans-Sulawesi Railways, involving investments worth US$2 billion.
"The Trans-Sulawesi Railways needed US$2 billion in funds. A Russian
investor has expressed interest in financing the project," Coordinating
Minister for Economic Affairs Hatta Rajasa said last month.
The construction of the railway tracks across six provinces in Sulawesi
will be done by the private sector in cooperation with state-owned
companies. "If the private company that wins the project is willing to
involve state-owned railway company PT Kereta Api Indonesia (KAI), there
will be no problem as long as no one is disadvantaged," he said.
Recently, West Sulawesi Governor Anwar Adnan Saleh revealed that his
province is one of the six provinces through which the Trans-Sulawesi
railway tracks will pass.
He said a number of countries, including Russia, China, Germany, Japan
and South Korea, have expressed their interest in developing the railway
project, which is expected to begin in Sulawesi island next year.
It seems that the countries will compete with each another to win the
tender for the project, said Anwar, who is also the head of the Sulawesi
Regional Development Coordinating Board (BKPRS).
"But the Indonesian government has yet to decide the country with which
it will cooperate in building the much-needed project in Sulawesi," he
added.
An economic observer from the University of Brawijaya, Ahmad Erani
Yustika, stated that if the government succeeded in providing adequate
infrastructure facilities, Indonesia could easily attract foreign
investors.
However, he pointed out that there were many problems facing infrastructure development across the nation.
The recent regulation on land clearance has yet to yield results in the
field and the government needs to pay more attention to the problem,
Ahmad said.
"I do not see a strong political will to increase investment at home.
The government still seems to dithering on this issue, which could
negatively affect investment. The bureaucracy is not yet efficient
enough and the development of infrastructure is slow," he noted.
Meanwhile, BKPM deputy chief for promotion affairs Himawan Hariyoga
predicted that there would be robust investment in 2013 despite the lack
of infrastructure and global uncertainties.
Investment will grow by 37 percent and reach Rp390 trillion in 2013, from this year's Rp283.5 trillion, he said.
"Other than the country's economic growth, there are many factors that
attract investors to the country and contribute to investment growth,"
Himawan continued.
He
added that potential investors would increasingly focus on emerging
economies such as Indonesia because of the economic slowdown in advanced
nations.***2***
(T.A014/INE/S012)
(T.A014/A/KR-BSR/S012) 07-11-2012 19:31: |
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