The problems, we think, can be blamed partly on the excesses of regional autonomy, bureaucratic incompetence, negative inertia and Yudhoyono himself, who has been notorious for his weak leadership.

But the President also is well-advised to reflect on whether the development programs decided on by his Cabinet could be easily understood by regional administrations.

For example, many may have been confused by development concept jargons so often propagated by the government these days.

Try to digest these: Economic corridors, integrated economic development zones, special economic zones, free trade zones and industry clusters.

During the national working conference with his ministers and regional leaders in Bogor on Tuesday the President launched economic corridor programs which will develop industry clusters and business centers to support local economies along the coastlines of Java, Sumatra, Kalimantan, Sulawesi and Papua.

The corridors, he said, would serve as development highways to connect new growth centers on the five major islands.

One day later, on Wednesday Investment Coordinating Board chief Gita Wirjawan talked about another issue. He told a hearing with the House of Representatives that of the 14 integrated economic development zones launched on the five major islands in 2005, only three had been realized and able to attract private investors.

The other 11 have remained undeveloped and unable to attract private investments due to acute lack of infrastructure, licensing red tape, inadequate fiscal incentives and overlapping authorities.

As part of the action programs during the first 100 days of Yudhoyono’s second-term, Coordinating Minister for the Economy Hatta Rajasa and several other economic ministers launched the development of clusters of resource-based industries in several provinces in January 2010.

In February last year, Hatta promoted another concept of special economic zones (SEZs) for development of three agriculture-based SEZs. Two SEZs in Medan (North Sumatra) and Dumai (Riau) would focus on palm oil-based industries while the third in Merauke (Papua) would focus on food crops, notably rice.

We find it difficult to understand why the government uses so many seemingly different and confusing concepts when what it really means is simply the development of SEZs based on the SEZ law enacted in September 2009.

SEZs essentially call for the development of special regions with streamlined procedures for business licensing and the hiring of expatriates, flexible labor regulations, tax breaks, customs duty exemptions and good infrastructure to woo investors in export-oriented industries.

In essence, the economic corridors, integrated economic development zones, industry clusters, free trade zones and export-processing zones are actually almost identical to the SEZ development concept that has been successfully implemented in China, India, Malaysia and Vietnam.

Natural resource-based industry clusters can generate localized economies arising from specialization and integration of manufacturing operations, reduce transportation costs and significantly improve supply chain management.

SEZs are also capable of enhancing development of economic corridors, which in turn will help form development highways through economic linkages between one SEZ to another.

But then, at the end of the day, whatever the name of the concept may be, nothing will happen without adequate infrastructure.

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