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Kadin to Boost Growth in Eastern Indonesia

26 May 2015 09:00 WIB

Ketua Kamar Dagang Industri (Kadin), Suryo Bambang Sulisto memberi sambutan pada acara Asian African Business Summit 2015 di JCC, Jakarta, 21 April 2015. TEMPO/Subekti

TEMPO.CO, JakartaThe Indonesia Chamber of Commerce and Industry (Kadin) will establish a special agency to draw development funding and another agency to attract investment flow in eastern Indonesian regions.

While the funding agency will be named "East Indonesia Development Funds," the investment institution to be set up in the form of a limited liability will be called "East Indonesia Investment Company."

"This institution will optimize financing and investment needs in the five priority sectors of energy, infrastructure, food, fisheries and maritime affairs, besides ensuring access to funding," Kadins Vice Chairman for Coordination in Eastern Regions Annar S. Sampetoding said in his report on the Trade and Investment Forum of Kadins National Working Meeting on Monday.

The five sectors were decided upon based on national priorities and on the potential of various regions in the eastern parts of Indonesia.

In addition to establishing funding and investment agencies, Sampetoding revealed that Kadin will also establish a cooperative of the chamber for east Indonesia.

He emphasized that equitable development in Indonesia must be given priority. Reducing the economic inequality between the eastern and western regions of Indonesia must also be supported by synchronizing the 2015-2019 Mid-Term National Development Plan (RPJMN) with the development plans of local governments.

East Indonesia requires the realization of infrastructure projects, such as the marine toll road and power generation ventures, expedited because infrastructure is an important pillar that has impacts on the development of other economic sectors, Sampetoding stated.

One of the sectors that will see its infrastructural development accelerated is the food sector, with the construction of irrigation networks and reservoirs.

"In this case, the government also needs to speed up the realization of the development program of food commodities, along with the construction of irrigation facilities, dams, roads and other villages," he pointed out.

Moreover, Kadin also encourages the development of the alternative energy sector. 

Sampetoding noted that the chamber will initiate the signing of cooperation agreements to build 25 biomass power plants in east Indonesia.

"It will start in Morowali in Central Sulawesi," he affirmed.

Kadin also reported that it will form three integrated economic sectors--a fisheries sector in Maluku, an agricultural sector in South Sulawesi and a livestock sector in West Nusa Tenggara and East Nusa Tenggara.

The cost to develop the three integrated economic sectors is estimated at more than US$50 million.

ANTARA




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