INDONESIA DEVELOPS INFRASTRUCTURE TO PREPARE FOR AEC

By Andi Abdussalam

Jakarta, Feb 24 (Antara) -- A free flow of goods, people and services will characterize the launch of the Association of Southeast Asian Nations' Economic Community (AEC) at the end of this year.          Infrastructure facilities such as roads, airports and seaports will be some of the key factors that will play important roles in the ASEAN free trade. Therefore, Indonesia is developing its infrastructure, particularly in regions that will face the AEC.          So far, enterprises have complained about the lack of adequate infrastructure to carry out businesses in the regions. The availability of good infrastructure will facilitate a smooth flow of goods and services across the country, boost economic activities and increase economic growth.          According to Suhariyanto, the deputy chief of the Central Bureau of Statistics (BPS), the government's economic growth target of 5.7 percent for 2015 will depend on infrastructure development.          "As we have overcome the subsidy burden, we have funds to develop our infrastructure. So the target of 5.7 percent will largely depend on the use of funds to develop infrastructure," Suhariyanto said recently.            So the government's efforts to improve infrastructure will serve as a key to the country's success in the AEC.          According to the Indonesian Chamber of Commerce and Industry (Kadin), besides Jakarta, infrastructure facilities in Yogyakarta and in other regions need to be improved, as well.          "Yogyakarta needs improved infrastructure, such as roads that connect other regions in the country," Kadin's Chairman for Yogyakarta, Wawan Harmawan, pointed out on Monday.          He noted that infrastructure facilities, including roads and irrigation facilities, need to be upgraded to increase the local production of goods and services, such as in the tourism and hotel industries.          "Improvement of infrastructure will also help when foreign goods and services flow into the country after the AEC comes into effect at the end of 2015," Harmawan said.          Adequate infrastructure facilities will attract investors and increase the flow and distribution of goods, he added.          Moreover, the National Development Planning Board (Bappenas) will raise the funds allocated for infrastructure development by 2.5 times next year to expedite national growth.          In its revised state budget for 2015, the government has allocated Rp290.3 trillion as funding for infrastructure development.          The funding allocations will mostly be directed towards the development of power plants, roads and airports, National Development Planning Minister, Andrinof Chaniago, who is also the Bappenas chief, affirmed after attending a coordination meeting with the provincial development planning boards (Bappeda) of Riau and Riau Islands early this month (February 5).          The move is aimed at evenly distributing the benefits of development outside Java, he explained.          Chaniago further noted that all pioneer airports will be upgraded to enable Hercules planes to land there.          To develop infrastructure in the region in the face of the ASEAN free trade program, the Industry Ministry will set aside Rp55 trillion to build supporting facilities for 13 industrial estates outside Java in the next five years.          "It is the responsibility of the government to set aside funds from the state budget to develop supporting infrastructure for industrial estates," Director General of Industrial Estates Development Imam Haryono said on Monday last week.        He added that the infrastructure projects include plans to develop airports for Rp8.2 trillion, roads for Rp8.1 trillion, locomotives for Rp10.1 trillion, power plants for Rp10.4 trillion, seaports for Rp17.6 trillion, and water resources for Rp939 billion.          The 13 industrial estates are Kuala Tanjung, Sei Mangke and Tanggamus in Sumatra; Batulicin, Ketapang and Landak in Kalimantan; Palu, Morowali, Bantaeng, Bitung in Sulawesi and Konawe; Buli in Maluku; and Teluk Bintuni in Papua.          Strategic projects to be built include seaports in Kualatanjung, Tanjung Perak, Pontianak, Bitung, Makassar, Banjarmasin, Kupang  and Halmahera; toll roads in Manado-Bitung; and the Batulicin ring road, Palu-Parigi highway, Kupang ring road and  Sasumuk-Bintuni highway, Haryono pointed out.          Furthermore, railway projects include the Manado-Bitung rail track, the Sei Mangke-Bandar Tinggi-Kuala Tanjung rail track, the Pasoso-Tanjung Priok track; and the electrification of trains running in the Manggarai-Bekasi-Cikarang route and outer railways.          Power generation projects to be built are the Kualatanjung steam-powered electric plant (PLTU), Asahan 3 hydropower plant, Pangkalan susu power plant, PLTU of Palu, Poso hydropower plant, Morowali power plant, PLTU of NTT-2 Kupang, PLTU of Ketapang, PLTG/MG of Pontianak Peaker, PLTU of Bengkayang, Parit Baru, Pulau Pisau, Konawe hydropower plant, Morowali hydropower plant, Bantaeng power plant, and Tangguh gas-fired power plant.          In addition, airport expansion and development projects include those of Mutiara airport in Palu, Eltari airport in Kupang, Halu Oleo airport in Kendari, Sam Ratulangi airport in Manado, and Syamsudin Noor airport in Banjarmasin.          With the construction of these infrastructure projects in various regions, Indonesia is expected to be ready to facilitate and face the flow of goods and services when the AEC comes into effect.     ***3*** (T.A014/INE/B003) EDITED BY INE (T.A014/A/BESSR/Bustanuddin) 24-02-2015 20:34