Jakarta, May 23 (Antara) -- The Indonesian Chamber of Commerce and
Industry (Kadin) is shifting its focus on developing businesses in Indonesia's eastern regions to boost and advance the economy in the
relatively underprivileged areas.
In its efforts to encourage business development in the eastern parts
of Indonesia, Kadin will hold a national working meeting to promote
potentials in the regions, organize funding for investors and form
integrated business provinces.
During the national working meeting, which will be held on Monday, May
25, and will be opened by President Joko Widodo, Kadin will hold
discussions on the theme, "Trade & Investment Forum: East Indonesian
Regions."
The forum will involve foreign and domestic investors,
executives of state-owned companies (BUMN) and other businesspeople from
the nation.
"We
will offer projects that are ready to be developed and provide
recommendations on effective policies to expedite development in eastern
regions in Indonesia," Kadin Coordinator and Deputy Chairman for
Eastern Areas Annar Salahuddin Sampetoding said in a written statement
in Jakarta on Saturday.
One
of the highlights of the occasion will be a panel discussion, which
will focus on national- and regional-level policies that favor the
acceleration of development projects in eastern parts of Indonesia, he
stated.
Sampetoding
also pointed out that Kadin was open to discussing anything to find
solutions to ensure that development projects in the eastern regions are
expedited.
"We need innovations and breakthroughs in terms of policies,
implementation and supervision so the momentum leads to concrete steps
to expedite the development projects," he remarked.
Besides
holding a forum to discuss business opportunities in the eastern
regions, Kadin also seeks funding for projects in the regions. For the
development of its eastern areas, Indonesia needs some US$20 billion.
For
the first stage, the chamber is preparing a funding of US$1 billion.
According to Kadin Chairman for Investment, Banking, Finance and
Business Development Affairs Reza V. Maspaitella, the organization has
already obtained a funding commitment of some US$20 billion from a
European institution to develop industrial areas in east Indonesia.
However, the funds will be provided in stages.
Therefore,
Kadin is preparing a funding of US$1 billion for the first stage.
"These funds will be provided to investors interested in developing
industries in the eastern parts of Indonesia," Maspaitella said on
Friday.
The money will be obtained from a European institution and will be channeled by the Valdo Investama Group in Indonesia.
"We have signed a memorandum of understanding, but I cannot reveal the
details now. I will inform you later," Maspaitella, who is the founder
of the Valdo Investama Group, stated.
He added that funding for the first phase amounted to US$1 billion.
"They first want to see how far they (the eastern regions) can be
developed. Later, they will increase it to US$5 billion, US$10 billion,
US$15 billion, and finally, US$20 billion," he remarked.
Investors of state-owned companies, private companies or foreign firms
interested to develop industries in eastern Indonesian regions will be
given the funding. Investments will be in the sectors of energy,
infrastructure, energy resilience, food resilience and acceleration of
development.
Moreover,
Kadin hopes that in the five years to come, there will be 100 thousand
new entrepreneurs, both micro and middle class, who will serve to
support industrial development so that the value of development
acceleration can be maintained and felt by the people.
In its efforts to advance and expedite the development of the eastern
regions, Kadin will also build three integrated areas in eastern
Indonesia to turn them into food suppliers.
Maspaitella said that the provinces to be turned into food suppliers are South Sulawesi, Maluku and West Nusa Tenggara.
"While
the agricultural sector will be focused on in South Sulawesi, Maluku
will be concerned with the fisheries sector and West Nusa Tenggara with
livestock," he pointed out.
Integrated areas will be established in the three provinces as they are
known to have potential for the development of the sectors, Maspaitella
added.
The fields of agriculture, fisheries and livestock are considered
capable of supporting the welfare of the people in eastern Indonesia.
"We
want the accelerated development of the eastern regions to improve the
welfare of the surrounding communities. These three sectors will allow
people to participate in real activities," he affirmed.
The Kadin official said other sectors such as energy and tourism can be
developed in the integrated areas through the development of renewable
energy and tourism.
After all, efforts to develop the energy sector, particularly the oil
and gas industries, are also shifting to the eastern parts of the
country.
"The prospects of the development of oil and gas industries in
Indonesia are shifting to the eastern regions. As the trend is now
moving eastward, oil and gas exploration has faced more challenges as
the soil in the eastern regions contains pre-tertiary layers of rocks,"
Coordinating Minister for Maritime Affairs Indroyono Soesilo explained
at a function on Thursday.
To
boost exploration activities in the eastern regions, the government
will soon formulate a synchronization program, such as the settlement of
delimitation with the 10 countries that share a border with Indonesia.
"I
have coordinated with the minister of energy and mineral resources.
This activity can serve as a preliminary effort for oil and gas
industries to explore and exploit," he pointed out.
Furthermore,
Minister of Energy and Mineral Resources Sudirman Said noted that oil
and gas industries still played a strategic role in driving the
Indonesian economy.
"Our oil and gas industries play a strategic role as they contributed
21 percent to the state revenue over the last decade. Also, their
contribution amounted to Rp1,428 trillion over the last five years," the
minister revealed on Wednesday, May 20.
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(T.A014/INE)
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(T.A014/A/BESSR/A/Yosep) 23-05-2015 17:43:4 |
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