Indonesia launches economic corridor plan
The Indonesian Government has recently
launched a programme to build six economic corridors, with a focus on
infrastructure development, in order to speed up economic growth.
The government expects that the programme would open the door for
balanced development and allow regions to focus on their own economic
potential.
In closing a two-day cabinet meeting at Bogor
city, in Java province, President Susilo Bambang Yudhoyono called on
officials to focus on local businesses.
“Before inviting
foreign partners, please look at our own resources first. State
companies and local business players in the provinces should be given
more opportunities under this programme,” Yudhoyono said.
Under
its economic corridor programme, the government plans to build economic
clusters and business centres on all major islands in Indonesia,
including Java, Sumatra, Kalimantan, Sulawesi and Papua to support
local economies.
Under the programme, each island will have the
chance to develop its own potential. For example, Sumatra would become
a centre for agriculture and energy while Java would focus more on the
service sector.
Coordinating Minister for the Economy Hatta Rajasa
expressed his optimism at the possibility of mobilising capital from
state-owned and local businesses.
In his opinion, during the next
four years, Indonesia will be able to mobilise 90 billion USD for
infrastructure development projects.
Besides, some countries have pledged loans for Indonesia’s economic corridor plan, Hatta said.
Late last year, Japanese companies promised to invest about 52.9
billion USD in Indonesia’s six economic corridors, while businesses
from the Republic of Korea have recently committed 12 billion USD in
some sectors as well as offered Indonesia soft loans at an annual
interest rate of 0.15 percent.
Economists predict that Indonesia is
likely to achieve an economic growth rate of more than 7 percent --
even 8 percent -- in the 2011-2014 period, if the country improves its
infrastructure, including road systems, electricity plants and ports,
and overcomes obstacles to development, such as corruption and a high
proportion of unskilled workers./.