| Jakarta, Oct 23 (ANTARA) - The government in the past five years has focused its infrastructure development in Java, while infrastructure in disadvantaged regions outside Java has yet to be developed maximally so that people's prosperity could not yet be developed evenly.
Therefore, the next government must give serious attention to the development of infrastructure outside Java in order to stimulate economic activities in the regions which in fact have big economic potentials.
"I hope the next government will give serious attention to development of infrastructure networks in an effort to galvanize economic activities in the regions," former industry minister Fahmi Idris said.
The same expectation was raised by Revrisond Baswir, economic observer of Gajah Mada University (UGM), who said that President Susilo Bambang Yudhoyono's Second United Indonesia Cabinet (UIC) which was inaugurated on Thursday for the 2009 - 2014 term should be serious in developing infrastructure in disadvantaged regions outside Java so that the people's prosperity would be developed evenly.
According to Baswir, the development of infrastructure so far has been focused on certain regions without being based on approaches to the problems. That's why the efforts were less effective.
"Infrastructure development must be given particular attention by the Second United Indonesia Cabinet in its 2009 - 2014 term because the First United Indonesia Cabinet has not yet maximally handled this sector in the last five years," Bawsir said.
Another perspective is needed in developing the infrastructure problem such as the application of the concept of equitable distribution of development in disadvantaged regions. And this must be discussed with the relevant agencies, such as the National Development Planning Board (Bappenas), the Ministry of Public Works and the Ministry of Disadvantaged Regions.
However, the First UIC for the 2004 -2009 period ignored this matter. The infrastructures it was handling were only those in big cities such as Jakarta while those in the regions were ignored.
If the infrastructure networks in least developed regions are developed, the prosperity of the people in these regions would be improved and economic development would spread evenly.
"I am basically pessimistic about the Second UIC for the 2009-2014 term. I wonder whether it will be able to make changes for the better. I think the conditions ahead will not be different from those exisitng in the past five years," he said.
The lack of infrastructure development outside Java is also acknowledged by former industry minister Fahmi Idris. He said that the lack of infrastructures outside Java was the main reason for the government's inability to optimize the development of natural resources in regions outside Java.
"Sumatra, Kalimantan and Papua are rich in natural resources but these regions could not develop because of lack of infrastructure," Fahmi Idris said.
He said that even though Sumatra already had the Eastern and Western Trans-highways, those in Java were much better. The same thing was also true in Kalimantan, where economic potentials could not be maximally tapped due to the lack of infrastructure.
"Because Kalimantan's infrastructures are not yet developed well, its economy could not yet be developed well either," Fahmi said.
That's why, the industrial sector outside Java is facing difficulties to be progressive. It lacks infrastructures. "Infrastructure is one of the main constraints faced in boosting the growth of industries," he said.
Virtually, the government is determined to develop infrastructures in an effort to boost the country's economic growth.
Based on the estimate of the Indonesian Chamber of Commerce and Industry (Kadin), Indonesia will need a fund of Rp2,855 - Rp2,910 trillion to finance its infrastructure development in the 2010 - 2014 period.
According to former minister of national development planning/former head of Bappenas, Paskah Suzetta, the government will stimulate investment in infrastructure development in order to boost economic growth to about 6-7 percent in the coming five years.
"We hope for a total investment of Rp2,000 trillion while actually we will have an investment of about Rp1,600 trillion in the coming five years in order to achieve this growth," he said.
Owing to the big investment needed to develop infrastructure, the government has to promote its infrastructure development to the private sector as it could only finance 30 percent of the total funds needed for the projects.
About 70 percent of the infrastructure projects are expected to be financed by private companies, among others through a private public placement (PPP) scheme.
"The government will support the PPP scheme by providing a good regulation. It is revising its regulation No. 67 on the government's guarantee," Suzetta said.***2*** (T.A014/A/HAJM/A/S012) 21:15/.... ) (T.A014/A/A014/A/S012) 23-10-2009 21:19:38 |
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