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VP Kalla Wants Regions to be More Competitive in Facing MEA

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6 May 2016 07:34 WIB

Vice President M. Jusuf Kalla attended and delivered a speech at the opening of the Boao Forum for Asia (BFA), which focuses on the future of Asia in the Hainan Province, China, on Thursday, March 24th 2016. TEMPO/Istman

TEMPO.CO, Jakarta - Vice President Jusuf Kalla said regional governments have to improve the  appeal of their regions. A healthy competitive climate could lead to increased productivity in the region, according to him.

“Prosperity is an appeal, and it can be achieved through productivity,” said the VP yesterday.

Kalla said that Indonesia is entering a competitive era. One of which is the ASEAN Economic Community.

According to Kalla, the key to survive the competition is through the reliance on productivity, namely on how to produce better, faster and cheaper goods. There are two sectors which could help regions develop in competition era: agriculture and manufacture.

For regions to develop and be productive, Kalla went on, the government will not stand idle. The issue of infrastructure development projects is a top concern, from roads to ports. Moreover, the government has lowered interest rate to help boost development of bussines players. “We have performed deregulation. It’s a step that we have taken together [with regional governments].”

Kalla also said regional transfer funds will be increased every year. In the 2016 state budget, the government has allocated a combined fund of Rp770.2 trillion for regions. It consists of village funds of Rp47 trillion and regional transfer funds of Rp723.2 trillion.

Therefore, Kalla has called on regional heads to keep innovating and carrying out the mandate given by the people. “A good mandate is indicated by increased revenue, lower unemployment rate and improvement in education and health.”

ADITYA BUDIMAN




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