Bontang poised to become province's next industrial, service powerhouse

Nurni Sulaiman ,  The Jakarta Post ,  Bontang   |  Mon, 09/22/2008 12:39 PM  |  The Archipelago

Bontang is a flourishing town in East Kalimantan. It used to be a small district in Kutai (currently Kutai Kartanegara) regency called Bontang Kuala, before officially becoming an administrative city in 1990.

The town is situated 125 kilometers north of the provincial capital, Samarinda, and borders on East Kutai and Kutai Kartanegara. Bontang became an autonomous mayoralty in 1999.

Bontang covers less than 50,000 hectares, or 406.7 square km, 30 percent of which is landed and the rest is sea territory. It is blessed with abundant marine resources, and is home to two major companies -- PT Pupuk Kalimantan (fertilizer plant) and PT Badak NGL (natural gas liquefaction plant).

Both companies are the main income earners in the area, contributing a significant amount to the national gross domestic product and gross regional product for the province.

Only 35 percent, or 15,000 ha of Bontang can be developed, with 13 percent of its total land area managed by PT Pupuk Kaltim, 12 percent by PT Badak NGL and the remaining 40 percent covered in protected forests.

The city has recently undergone a facelift under the leadership of Mayor Sofyan Hasdam and Vice Mayor Sjahid Doroni.

"We also are focused on developing Bontang with community-based methods so it will also be free of poverty issues by 2020," Sjahid told The Jakarta Post recently.

Sjahid said his administration would develop the city based on a four-pillar approach -- contemporary, sustainable, healthy and poverty-free -- all of which he deemed correlative.

Bontang residents would not be abreast of the current affairs if they were not healthy and perceptive, Sjahid said, especially in dealing with poverty issues.

"All four are inter-related, so much so that we cannot ignore the four pillars in development," he said.

To improve education, the city administration has implemented a free education program for all of its residents. It has set aside 14 percent of its budget for this purpose and expects it to be realized in the next two years.

"There won't be any more school dropouts in 2010."

It has also allocated rolling funds in a poverty alleviation program by empowering the community through people-based economic programs, such as providing capital assistance and training for small and medium industries.

"We are making efforts to maintain a balance between small, medium and large industries to facilitate a snowball effect in the local economy ... Just picture if around 6,000 employees from Pupuk Kaltim and Badak NGL alone are estimated to earn a monthly salary of Rp 1 million each.

"The informal sectors, such as petty traders could benefit from the Rp 6 billion in circulation each month.

"The money in circulation will support an accelerated economic growth in Bontang, as well as facilitate the poverty alleviation program.

"The mayoralty will also provide rolling funds, training and counseling for small and medium industries in Bontang according to their needs," Sjahid said.

Bontang recorded a population of 136,000 in September this year, while its poverty level stood at 6 percent. The poverty-free program would reach its goal earlier than expected, by 2015, Sjahid said.

In the Healthy Bontang Program, the mayoralty has initiated free in-patient treatment and provided health insurance for its residents. It is expected to be fully realized this year, he added.

Bontang is currently aiming to become the most competitive and prestigious industrial and service city globally and regionally by 2020. Its budget this year totals Rp 800 billion.

The town is home to a number of tourist and recreational facilities, such as the star-rated Hotel Bintang Sintuk and a number of inns and restaurants.

Several service facilities have also flourished in the city, including national private banks, telecommunications companies and Internet cafes.

The service and processing industries have absorbed a large part of the local workforce. As much as 28.3 percent of Bontang residents are engaged in the food processing industry, for example making shrimp paste, cakes and snacks.

Bontang's sea area spans 34,977 hectares, and is endowed with marine life. Its sea creatures include shrimp, crab, grouper, lobsters, sea cucumbers, seaweed and oysters, which are sought after by the overseas market. The richness of its marine life also has an immediate impact on the local economy.

Bontang is home to the Bontang Kuala fish community. Its coastal mangroves span 13,990 ha, coral reef 8,744 ha and seaweed around 16 ha.

The town is a potential tourism destination, thanks to its extensive and pristine beaches. Bontang Kuala is also close to Beras Basah and Segajah islands as well as Kutai National Park and Marina Beach with its underwater beauty.

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