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Despite incidents, Aceh a safe place for investment: Governor

Challenge offered: Deputy Tourism and Creative Economy Minister Sapta Nirwandar (right), Indonesian Employers Association (Apindo) chairman Sofjan Wanandi (center) and Chamber of Commerce and Industry (Kadin) chairman Suryo Bambang Sulisto are the speakers in the Aceh Business Forum themed Go West! Invest in Aceh, in Jakarta, on Tuesday

The Jakarta Post
Jakarta
Wed, April 16, 2014

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Despite incidents, Aceh a safe place for investment: Governor Challenge offered: Deputy Tourism and Creative Economy Minister Sapta Nirwandar (right), Indonesian Employers Association (Apindo) chairman Sofjan Wanandi (center) and Chamber of Commerce and Industry (Kadin) chairman Suryo Bambang Sulisto are the speakers in the Aceh Business Forum themed Go West! Invest in Aceh, in Jakarta, on Tuesday. The forum, which was held by the Soegeng Sarjadi Syndicate and the Center of Reform on Economics (CORE), was also attended by Aceh Governor Zaini Abdullah, who said that Aceh was a geographically strategic place to invest and a region with high trade traffic. (Antara/M. Agung Rajasa) (right), Indonesian Employers Association (Apindo) chairman Sofjan Wanandi (center) and Chamber of Commerce and Industry (Kadin) chairman Suryo Bambang Sulisto are the speakers in the Aceh Business Forum themed Go West! Invest in Aceh, in Jakarta, on Tuesday. The forum, which was held by the Soegeng Sarjadi Syndicate and the Center of Reform on Economics (CORE), was also attended by Aceh Governor Zaini Abdullah, who said that Aceh was a geographically strategic place to invest and a region with high trade traffic. (Antara/M. Agung Rajasa)

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span class="inline inline-none">Challenge offered: Deputy Tourism and Creative Economy Minister Sapta Nirwandar (right), Indonesian Employers Association (Apindo) chairman Sofjan Wanandi (center) and Chamber of Commerce and Industry (Kadin) chairman Suryo Bambang Sulisto are the speakers in the Aceh Business Forum themed Go West! Invest in Aceh, in Jakarta, on Tuesday. The forum, which was held by the Soegeng Sarjadi Syndicate and the Center of Reform on Economics (CORE), was also attended by Aceh Governor Zaini Abdullah, who said that Aceh was a geographically strategic place to invest and a region with high trade traffic. (Antara/M. Agung Rajasa)

Despite some fatal incidents that have rocked security in Aceh, generally, the resource-rich province is a safe place for investors to start their business, an official has said.

Aceh Governor Zaini Abdullah said that the province'€™s crime level was below that of its peers, therefore, businesspeople should invest in the province.

'€œI assure you, Aceh is a safe place to invest. If we talk about crime, Aceh actually has a lower crime rate than the larger cities,'€ Zaini told a business forum titled Go West, Invest in Aceh, organized by Soegeng Sarjadi Syndicate on Tuesday.

A series of fatal shootings plagued Aceh ahead of the April 9 legislative election, apparently the politically motivated crimes put the province in a bad light and supported investors'€™ previous concerns.

Commenting on the incident, Zaini said that the recent violence was '€œnormal'€.

'€œRegarding the violence a couple weeks ago [...] I think such incidents are normal especially in a developing region,'€ he said.

Meanwhile, the Indonesian Employers Association (Apindo) chairman Sofjan Wanandi, who also spoke at the forum, said that investors were still reluctant to invest in Aceh.

'€œInvestors think Aceh is a dangerous place. In fact, Aceh is a much safer place today,'€ he said.

Sofjan added that investors still did not know Aceh, businesspeople needed to learn more about the province.

Meantime, Army chief of staff Gen. Budiman, who also spoke at the forum, underlined that the recent incidents in Aceh were linked to politics.

'€œWe need to be cautious as political tension will continue until the presidential election on July 9,'€ he said.

Despite some sporadic incidents in Aceh, generally, security and political stability in the province is conducive for businesspeople to invest and start businesses, according to the four-star general.

Budiman referred to a particular incident recently between local citizens and a company regarding the construction of a hydro power plant.

Zaini, however, claimed that over the last two years, investment in Aceh, both from foreign and local investors, had increased, without complaint or complications.

Foreign direct investment into Aceh topped US$94.2 million last year and $172.3 million in 2012, versus $22.5 million in 2011 and $4.6 million in 2010, according to data from the Investment Coordinating Board (BKPM).

Since Zaini was inaugurated as governor in 2012, the local administration has been trying to lure investors. It released Aceh Investment Profile, an investors guide book, and launched its acehinvestment.com website for those wanting information about opportunities in the city.

'€œWe are prepared to facilitate potential investors, streamline investment licensing process and provide fiscal and non fiscal incentives,'€ Zaini said.

Zaini emphasized that the province had abundant natural resources, particularly in the agriculture and mining sectors. In the agriculture sector, Aceh has processing and packaging facilities for coffee and cocoa. The province also has a potential rubber and palm oil processing site.

Moreover, Aceh has also several gold and copper mining sites along with non-metallic mining sites for andesite and limestone.

Commenting on sharia, which many claim to have worried investors, Zaini said that sharia had been implemented smoothly without dissent from the central government or local citizens.

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