Palu publishes `Doing Business in Palu'

Ruslan Sangadji ,  The Jakarta Post ,  Palu   |  Mon, 05/18/2009 1:43 PM  |  The Archipelago

Central Sulawesi capital Palu has been designated as part of the province's Integrated Economic Development Zones (Kapet), which requires it to continually draw investors to do business in the city.

For this reason, the Palu municipality also attended last week's 2009 World Ocean Conference (WOC) and Coral Triangle Initiative (CTI) in Manado, North Sulawesi, to look at the possibilities of working with a number of provinces and countries that participated in the forum.

Based on discussions with Manado-Bitung Kapet representatives, Central Sulawesi will an eastern Indonesian tour destination, in addition to Manado, Togean (Central Sulawesi) and Raja Ampat (Papua).

To develop the tour destinations, the Palu, Donggala, Parigi Moutong and Sigi integrated economic development zones (Palapas Kapet) are also expected to take part in the program.

"After holding discussions with Manado Bitung Kapet, Central Sulawesi will eventually become a tour destination, along with Manado, Togean, Raja Ampat and Palapas," said Subhan Haris, the head of the zones' representatives.

The Palapas Kapet has published a handbook, Doing Business in Palu, which contains information on visa applications, working in Palu for expatriates, costs of doing business, bank interest rates and rupiah exchange rates, including existing tariffs in Palu, such as on transportation (air and taxi fares).

Subhan said the most important thing was rent tariffs in Palu's industrial zone and small industrial areas in Roviega, also in Palu.

"We will provide estimates on lease rates, from US$2 per square meter per month, at one of the business areas in Palu's industrial zone."

He added power, tap water, telephone and other communication rates will also be described in the manual.

The municipality will also offer Palu sightseeing tour leaflets to provide an overview of the city, accompanied by photographs, as well as information on the city's history; education, social and cultural activities; security assurance; maritime trading; and sports facilities.

To support the program, Palu Mayor Andi Mulhanan Tombolotutu said his office was in the midst of encouraging development strategies, such as improving and unifying the upstream to downstream production network and creating a favorable investment climate by establishing Palu as a trade center and spurring growth of local banking institutions.

He said the doors to investment opportunity in Palu were currently wide open, in part due to the current 2009 Palu Expo.

"We are doing all this by looking at our potential, so much so that we could attain the chance to become the Northern Gate for trade through infrastructure and human resource development in a wider sense."

The Palu municipality will also set up the Palu Promotional Board at the Mustika Ratu building in Jakarta, aimed at facilitating investment procedures by prospective investors in Palu. The office, said Mulhanan, would provide various data on the potentials in Palu, maps on prospective businesses, including arrangements for various licenses and trade agreements with the Palu municipality. He even ensured licensing procedures would be integrated under one roof in less than a week.

"We make sure that investors will be facilitated in investment matters, without confusing bureaucratic red tapes."

Economic growth in Palu has shown improvement through the physical construction of facilities, infrastructure, community-based economy, increase in exports and investments, as well as various economic supporting activities, such as better access to buffer areas, and construction projects for industrial areas, container terminals and other economic facilities.

Palu's economic condition in the past five years (2004-2007) showed quite a significant economic growth, particularly the increase of 7.47 percent in 2007.

Its Gross Domestic Regional Product also rose from Rp 3,324,565 in 2006 to Rp 3,847,565 in 2007, indicating the muncipality's economic polices had been effective.

According to Mulhanan, Palu had been encouraging programs from the aspects of human resource quality and other non-physical projects over the last two years.

"We are currently encouraging construction projects to boost investments in Palu."

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