JAKARTA. Economic development that is supposed to help lift Papua from protracted poverty is at risk of a falloff as businesses become jittery over heightened security worries.
The country’s most under-developed province, but with a wealth of natural resources, is likely to see many ambitious projects, already planned, shelved unless the government can ensure safety.
“Investors are concerned by the security situation in Papua and have cancelled plans to visit,” said chairman of the Papua chapter of the Indonesian Chamber of Commerce and Industry (Kadin) John Kabey on Thursday.
“None have dropped their investment plans as yet, but businessmen are still awaiting a more conducive situation. Still it’s very damaging for Papua’s economy in the long run.”
John said that although security problems were limited to certain areas of the province, the public in general perceived the entire province as being in chaos.
“The violence only occurred in Puncak Jaya and in Timika, while other places such as Merauke, Biak, Yapen and Waropen are safe and peaceful,” he said.
Papua has several ambitious investment projects in the pipeline, including the Merauke Integrated Food and Energy Estate that will see numerous investments by local heavyweights. There is also a big coal-fired power plant project planned for Urumka and the port in Merauke.
Apart from US mining giant Freeport McMoRan that operates the world’s largest gold and copper reserve in Timika, British energy giant BP Plc. also has a gas operation in Papua that is slated to become the country’s biggest.
Papua is also part of the country’s economic corridors program. Under the scheme, the government plans to build economic clusters and business centers to support unique local economies.
If the program goes ahead, the value of Papua’s economy is expected to increase 6.3 times to US$83 billion by 2030.
“Should there be no security improvement, development in Papua will remain lagging far behind in comparison with other provinces,” said John.
Decline in business activity has also been seen in hotel occupancy rates in the province’s capital of Jayapura for the last two months.
“It’s terrible. Occupancy has dropped by as much as 30 percent. Many businessmen have cancelled their visits due to security reasons,” said Jayapura’s Aston Hotel sales manager Loisey Tombokan.
More than 10 people have been killed by unidentified gunmen this month alone, including a police chief at Puncak Jaya, with security personnel so far being unable to catch the perpetrators.
Calls for independence have long been heard in Papua, as many among the indigenous population of the easternmost province, which has always been heavily controlled by the military, feel that they have been oppressed and kept in poverty for decades.
“The conflict will affect much-needed investment in Papua. The biggest investor there is Freeport. They will inform their head office about the situation and the whole world will take notice,” said Industry Minister M.S. Hidayat.
Trade Minister Gita Wirjawan is also aware of business concerns over security in the province and is hoping the security forces will rapidly bring the situation under control.
“We’re really concerned about the situation and we hope investors will remain confident in doing business there and help the province prosper. Not all areas in Papua have security problems,” said Gita. (Nethy Dharma Somba, Nani Afrida/The Jakarta Post)
Cek Berita dan Artikel yang lain di Google News
