Fauzi focuses on north coast economic zone deal

Triwik Kurniasari ,  The Jakarta Post ,  Jakarta   |  Thu, 11/13/2008 10:38 AM  |  City

The city administration plans to convert the Marunda area on Jakarta's northern coast into a specific economic zone with international and inter-island ports, in a bid to boost the local economy.

"The area has a long-term investment value which could boost economic growth by creating more job opportunities and increasing regional income," Governor Fauzi Bowo said on Wednesday.

As part of its goal, the administration would invest Rp 411 billion (US$39 million) to buy a larger stake in PT Kawasan Berikat Nusantara (KBN), in Marunda.

"Being a major stakeholder in the company will be the first important step for the administration in developing Marunda as a specific economic zone," Fauzi said.

Fauzi was speaking during a plenary meeting at City Council, responding to questions from some factions about the plan and its budget allocation.

City councilors previously questioned the administration's move to allocate Rp 411 billion for KBN.

The administration currently holds an 11.3 percent stake in KBN; the rest of the shares belong to the central government. The planned investment is expected to increase the city administration's ownership of KBN to 51 percent.

Of seven factions, four have questioned the plan -- the Democratic Party, the United Development Party (PPP), the National Mandate Party (PAN) and the Golkar Party.

Siti Sofiah, a Democratic Party councilor, said on Monday that her faction did not agree with the plan because the city had yet to conduct a feasibility study for it.

PAN's Agus Darmawan said executives should work out how much return the investment would bring.

Separately, the House of Representatives' commission for energy, mineral resources and the environment has urged the city administration to take immediate action to protect Jakarta's northern coastal area from further environmental damage.

"Today, there are very few mangrove trees left in the coastal area, especially around Ancol. The Ancol developers have cleared mangroves trees that could have protected the area from tidal flooding," said Ade Daud Nasution, a Star Reform Party (PBR) councilor.

Ade said the administration should also conduct a medical examination of green mussels and other seafood which has been said to contain mercury from sea pollution.

Deputy governor Prijanto said it was not easy to keep mangrove seedlings alive.

"So far, we have built several dams to protect mangrove trees from high tides. In 2009, we will establish a team specializing in safety and the development of the north coastal area," Prijanto said.

The northern coast of Jakarta has become an important issue for the city over the past few years, as uncontrolled industrial developments in the area have created massive environmental impacts.

The areas have suffered a range of problems including flooding, abrasion, tidal flooding and pollution.

Most of Jakarta's mangrove forests have been cleared for fish farming and housing developments.

According to data from the Indonesian Forum for the Environment, six of the nine estuaries in Jakarta were heavily polluted and only 120 hectares of mangrove forest remain of some 1,300 hectares recorded in the 1960s.

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