Connectivity development is urgently needed."
Palembang (ANTARA News) - The head of the Western Region (Medan-Lampung) chapter of the Indonesian Association of Retailers, Hasanuri Jr, has urged President Joko Widodo to focus on a number of projects to improve connectivity between regions in Sumatra.

"We feel regions outside Java have been neglected. Why it has happened. It is because it has been so difficult to realize even a toll road project in Sumatra while many have already been built in Java," he said on Sunday.

He said logistic cost in Indonesia has been too high reducing competitiveness of the countrys products.

He said he hoped President Joko Widodo would act concretely by overcoming the shortage of infrastructure facilities such as roads, bridges and ports.

"Connectivity development is urgently needed. Unless it is carried out economic growth in the regions would remain static, citing Tanjung Api-Api port development project in South Sumatra that has not been realized until now," he said.

He said toll road development between Aceh to Lampung meanwhile should be given a priority.

He said various raw materials for industries in Java are generally produced in Sumatra and Kalimantan and so "if land transportation is smooth businessmen would have other alternative besides sea routes."

The ministry of public works has proposed starting the development of two Trans-Sumatra toll road sections this year after land acquisition for the project is done by regional governments concerned.

The two toll road sections include the Palembang-Indaralaya section stretching 22 kilometer long worth an investment of Rp1 trillion and the 135-km long Pekanbaru-Kandis-Dumai section worth Rp14.7 trillion.

According to the Indonesian Chamber of Commerce and Industry logistic cost in Indonesia reaches 24 percent of the countrys total Gross Domestic Product or is worth Rp1,820 trillion a yer making it the highest in the world.

The countrys logistic cost is far higher than Malaysias which is only 15 percent as well as that of the US and Japan which is only 10 percent.

(Reporting by Dolly Rosana/Uu.H-YH/F001)

Editor: Priyambodo RH
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