Govt eyes Rp 130 T investment in border area

JAKARTA. The government plans to attract investments worth Rp 130 trillion (US$9.6 billion) to border areas in the next five years to help propel development there.

“We will work hard to attract investment to border areas as they are the gates of international trade, the main routes for cross-border transportation and central to economic development,” said Villages, Disadvantaged Regions and Transmigration Minister Marwan Jafar on Tuesday.

According to Marwan, special regulation was key, especially for easing the process of attaining permits. Although the regulation could be issued as a ministerial regulation or presidential instruction, Marwan said he would prefer a separate law.

“We can draft a law on disadvantaged-regions development and add a special investment regulation for border areas as part of it,” Marwan told thejakartapost.com.

He also said that regional governments in border areas were all in support of his plan. They enthusiastically welcomed the development plans he said, agreeing that investment would indeed benefit them.

"Three governors and 12 regents from Kalimantan and Riau Islands have signed a memorandum of understanding with the ministry," said Marwan.

The ministry has started developing infrastructure in border areas this year, including comprehensive integrated transmigration to border areas. In the near future, it plans to develop integrated plantations and livestock farms to boost regional economic growth.

“One of our programs is the planting of 1 million hectares of rice paddies near Papua’s border. We've currently completed 30,000 hectares,” said Marwan, adding that the ministry also planned to develop plantations in Kalimantan.