14 Areas Outside of Java for Major Industrial Breakthrough

Liputan6.com, Jakarta - In an increasingly competitive world, Indonesia needs to foster its ambition to compete with other nations by advancing its development in the industrial sector. The government under President Joko ‘Jokowi’ Widodo has a specified target of developing 14 industrial areas outside of Java up until 2019. Apart from the Jorong Industrial area in South Kalimantan which is now still under construction, the infrastructure development of other 13 industrial areas will need an investment as much as Rp 55,4 trillion.

The Director General of development for the industrial area from the Ministry of Industry (Kemenperin) Imam Haryono said that the large amount of investment needed is deemed necessary for the construction of infrastructures such as airports, roads, railways, electricity power plants, ports and water resources.

"The budget needed for the construction of industrial areas is around Rp 55,4 trillion," Iman said, Yogyakarta, Monday (16/02/2015).

According to him, the investment needed will come from the state government budget (APBN) until the year of 2020. Out of the total amount, the construction of airports will cost around Rp 8,2 trillion. This includes the construction of Mutiara Palu airport, Eltari Kupang airport, Halu Oleo Kendari airport, Sam Ratulangi Manado airport and Syamsuddin Noor Banjarmasin airport.

The construction of roads infrastructure will take about Rp 8 trillion from the total budget needed. This includes the construction of Jalan Lingkar Batulicin road, Palu- Parigi road, Lingkar- Kupang road and Susumuk- Bintuni road. For railways, the government will need Rp 10 trillion for the construction of KA Manado- Bitung railway, Sei Mangke- Bandar Tinggi- Kuala Tanjung railway, Pasoso- Tanjung Priok railway andManggarai- Bekasi- Cikarang railway. This will entail the making of Manado- Bitung toll road.

For the energy resources, they will need as much as Rp 10,4 trillion for the development of electric steam power plant (PLTU) at Kualatanjung, Asahan 3, Pangkalan Susus, PLTU Palu, PLTA Poso, PITMG Morowali, PLTU NTT 2 Kupang, PLTU Ketapang (FTP2), PLTG/MG Pontianak Peaker, PLTU Bengkayang, Parit Baru, Pisau island, PLTA Konawer, PLTA/MH Morowali, Bantaeng and PLTGU Tangguh.

As for the development of port infrastructure, the amount needed will be around Rp 17,6 trillion. This includes the making of Kualatanjung port, Tanjung Perak, Pontianak, Bitung, Makassar, Banjarmasin, Kupan and Halmahera. Whereas the infrastructure of water resource will take up to Rp 939 billion.

The 13 spots chosen for the construction of industrial areas are Kualatanjung and Sei Mangke, North Sumatera, Tnaggamus in Lampung, Batu Licin in South Kalimantan, Ketapang and Landak in West Kalimantan, Palu and Morowali in Central Sulawesi, Bantaeng in south Sulawesi, Bitung in North Sulawesi, Konawe in Sulawesi Tenggara, East Buli Halmahera in North Maluku and Teluk Bintuni in Papua. (Akp/Riz)