Centralized Investment in Java, Not Good for Regional Development
- 31 Jan 2017
- News/General
- 572 viewed
Director General (Dirjen) of Bina Marga Arie Setiadi Moerwanto considers that investment in Indonesia which is still concentrated in Java is not good for the development of other regions in the archipelago. According to him, this can be understood because of the 250 million inhabitants, 57.5 percent of them live in Java.
Arie conveyed this when representing the Minister of Public Works and Public Housing (PUPR) giving a speech opening the 2017 Indonesia Economic Outlook Seminar organized by the Sindo Group Newspaper at the Pullman Hotel, Jakarta on Tuesday (31/1).
"This is not very good. Finally, it has influenced the investment climate which has proven to be centralized only in Java. No wonder so far there has been a gap between Java and other islands, "he said.
Furthermore, the Director General of Highways said, the gap between the western and eastern regions in Indonesia resulted in logistics costs being very expensive. These conditions are detrimental, because Indonesia has the potential for abundant natural wealth but has not been utilized optimally.
Realizing this, the Joko Widodo administration changed the pattern of development that began from outside Java. Arie said, this year at the Directorate General (DG) of Bina Marga the composition of the budget allocation for the eastern and western regions was 60 percent compared to 40 percent.
"That way, development and the economy can be felt by all people in Indonesia. This is our concern for the next few years, "he said.
The Ministry of Public Works and Housing through the Directorate General of Highways and the Directorate General of Human Settlements also focus on developing border areas. For infrastructure DGH built border roads in Kalimantan, East Nusa Tenggara and Papua. Responding to negative comments that building border roads is a waste of money and unprofitable, Arie stressed, this development is to build new growth for border communities.
"As long as there is no development, border communities cannot experience growth. So we have to build adequate infrastructure there, "he said.
The government also hopes that, the Indonesian border area will no longer be the backyard of the country, but the terrace or front page of the country which is the prestige of the state in the border region. (KompuBM)