JOKOWI VOWS TO ADVANCE INDONESIA'S MARITIME SECTOR

By Andi Abdussalam

Jakarta, Octo 21 (Antara) - Indonesia's new President Joko Widodo, popularly called Jokowi, has pledged to advance Indonesia's marine sector and to restore the nation's past maritime glory.          The new president took the pledge after he was installed as Indonesia's seventh president along with Vice President Jusuf Kalla (JK) on Monday.          He pointed out that Indonesia has, so far, focused on land activities and in the process, has overlooked its seas where the marine and fisheries sector has an economic potential of more than US$1.2 trillion a year.          "We have left the seas, oceans, straits, and bays too long. Now is the time for us to get back and revive all this. We must be glorious at sea as reflected in the slogans of our ancestors in the past. We can echo the slogan again," the president remarked while addressing the plenary session of the People's Consultative Assembly (MPR) on Monday.          Jokowi called on all Indonesians to work hard in developing the maritime sector as the future of the state depends on it.         "We have to work as hard as possible to get Indonesia back to its previous maritime state's status. Oceans, seas, straits, and bays are the future of our civilization," the new president noted.            Jokowi and JK were inaugurated as president and vice president in a ceremony attended by various heads of government and state representatives.          It is hoped that Jokowi's maritime vision will help to advance the country's maritime development and fully tap its marine potential while enabling the nation to use its water bodies as a maritime "toll road" to supply logistics to various regions at low transportation costs.          By adopting the maritime development concept, the results of economic development implemented both on land and in the sea can be evenly distributed, thereby enabling economic development to be carried out equitably throughout the country.          So far, the development has been largely land based, while in fact, Indonesia's waters are rich in marine resources and fisheries.          According to Marine and Fisheries Ministry Research and Development Chief Achmad Poernomo, Indonesia's maritime waters have the potential to annually provide 6.7 million tons of fish, while the potential of marine aquaculture is the largest in the world with an area of 12 million hectares.          He remarked that the economic potential of the marine and fisheries sector could reach more than US$1.2 trillion per year, while the economic value of the same sector in 2013 reached Rp291 trillion.         Poernomo claimed that the Maritime and Fisheries Ministry has taken every effort to promote value-added fishery products through industrialization, which has yielded a positive impact.         He highlighted the fact that 60 percent of the 505 districts or cities in Indonesia are located along the coastal areas and 40 percent of its goods and services are transported through the sea route.          Thus, the new government should prioritize the marine and fisheries sector and shift its focus from land to sea. The idea is supported by the Yogyakarta-based Gajah Mada University (UGM) rector, Prof. Pratikno.          "We should prioritize maritime development in all fields," Prof. Pratikno noted in an opening speech at Indonesia's Maritime Congress, "Strengthening Maritime Sovereignty" held last month (Sept. 23) at the Senate Hall of UGM Yogyakarta.          Pratikno hoped that in the next two months, there will be a change in approach towards the maritime sector. He cited the example of the maritime "toll road" concept, a program proposed by Jokowi during a presidential candidate debate in the run-up to the July 9, 2014, presidential election.          But, he pointed out that the program can be successful only when marine imports enter the Indonesian markets through the 2-3 ports situated on the periphery of all regions in the country.          Thus, the flow of logistical supplies will run smoothly and the maritime "toll road" program can become operational without relying on government funds. The only thing needed to run this program is strong commitment, Pratikno emphasized.          In the meantime, economic observer Dr M. Firmansyah of the University of Mataram, West Nusa Tenggara (NTB), remarked that the officials of the Jokowi government must prioritize the maritime "toll road" concept as it has the potential to ensure equitable industrial development in the country.        "I notice, so far, that large-scale companies face problems in developing factories in regions with small market potential (due to the transportation problem), even if they are rich in raw materials," he stated in Mataram, NTB, on Monday.         He cited as an example of the Lombok Island of NTB, which has a high-quality seaweed potential, but it is unlikely that big companies will set up a factory there. This is due to the fact that high transportation costs are incurred in building a factory in raw material-rich regions. As a result, companies opt to build factories in market areas such as the Java Island.         "Moreover, local industries will face problems with maximal access to big markets. Transactions and distribution of goods are costly, not only because of the prices but also due to other factors such as the delay caused due to damaged roads, ports, and others," Firmansyah stated.          If the maritime toll road concept is implemented, then investors will be encouraged to build factories in raw material-rich but less developed regions.          "Unnecessary costs can be reduced if there are good sea transportation facilities and available toll sea transportation lanes," Firmansyah noted.          He explained that a maritime toll road will at least connect several big islands of Kalimantan, Sumatra, Bali, Sulawesi, NTB, and Papua with the Java Islands.          Therefore, the Indonesian Chamber of Commerce and Industry (Kadin) has hailed the maritime vision of the Jokowi-JK government saying that it will reduce logistical costs that have so far burdened businessmen.          "The maritime vision of the new government of Jokowi-JK will provide an investment opportunity to national private businessmen operating in logistics businesses," Kadin's Deputy Chairman of the Committee of Logistics Service Suppliers and Businessmen, Zaldi Masita, stated.          He affirmed that the implementation of the vision will be a starting point for realizing efficient, effective, and competitive maritime logistics services.          He revealed that several private companies have shown interest to invest in the port logistics infrastructure sector if the government of Jokowi-JK will cooperate with national private companies to develop strategic ports in the country.          Zaldi reiterated that the logistical costs in Indonesia were high, reaching up to 24 percent of the Gross Domestic Product.         "The port sector still remains one of the causes of inefficiency due to poor infrastructure while tariffs and port costs tend to rise," he added.     ***2*** (T.A014/INE/O001) EDITED BY INE (T.SYS/A/BESSR/O. Tamindael) 21-10-2014 12:16:5