T

he developer of an agribusiness market (PIA) megaproject in Jemundo subdistrict, Taman district, Sidoarjo, is urging the East Java administration to disburse the rest of the funds allocated for the project, saying it is needed to finish the market's non-commercial facilities.

Speaking at a hearing with the East Java legislature last week, president director of PT Jatim Graha Utama, the provincial administration-owned developer company, Erlangga Satriagung, said the provincial administration had only distributed Rp 222 billion out of the Rp 308 billion allocated for the project.

"We need the remaining Rp 86 billion to finish the development of non-commercial infrastructures including the access road and other public facilities," Erlangga said.

Such infrastructure was urgent to convince investors the market, reportedly Southeast Asia's largest for agribusiness commodities, was feasible, with bright prospects, he said.

He said it was a Rp 836 billion-project, but only Rp 330 billion was needed from investors for commercial facilities. The remaining Rp 308 billion for developing non-commercial ones was the provincial administration's responsibility.

"From the start, this project was built not only for commercial purposes but also for social ones in a bid to help empower the province's agribusiness potentials," he said.

He added that the project also aimed to develop an agribusiness market system.

"Agribusiness commodities produced by the province are supplied to other regions that we don't have any bargaining power over."

The project was expected to finish its first development stage by July next year. The first stage will develop a sub-wholesale building with 450 kiosks and a wholesale building with 800 kiosks.

The next stage will comprise of the development of two units of wholesale buildings, each with a capacity of 800 kiosks, and the development of twin blocks of flats for the traders to rent.

Ana Lutfi of the provincial legislature's Commission B overseeing the matter said apart from controlling the value of the province's agribusiness products, the market was also expected to help increase the farmers' exchange value (NTP).

"If the NTP increases, the farmers' wealth will also increase," said Ana, adding farming was the majority livelihood for people in East Java.

PIA has been one of the provincial development programs aimed at improving the province's economy. The four others are the Suramadu Bridge, southern highway project, poverty alleviation integrated movement and toll road development.

The development of the 50-hectare agribusiness market that was launched in 2003 was once uncertain due to an alleged graft case worth Rp 56 billion in the land acquisition process for the project.

The East Java Prosecutors' Office reportedly will reopen the case following a verdict from the Supreme Court that supports the prosecutors' appeal against the four defendants in the case acquitted by the Sidoarjo District Court in Nov. last year.