We need innovations and breakthroughs in terms of policies ..."Jakarta (ANTARA News) - The Indonesian Chamber of Commerce and Industry (Kadin) is shifting its focus on developing businesses in eastern Indonesian 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 (Jokowi), 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.
(T.A014/INE/KR-BSR/H-YH)
Reporter: Andi Abdussalam
Editor: Priyambodo RH
Copyright © ANTARA 2015
