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Agriculture, maritime value boost in Sumatra

The Investment Coordinating Board (BKPM) will encourage investment in Sumatra, especially in the processing industry based on natural resources, such as downstream agriculture and maritime industries, says board chairman Franky Sibarani

Apriadi Gunawan (The Jakarta Post)
Medan
Wed, May 20, 2015

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Agriculture, maritime value boost in Sumatra

T

he Investment Coordinating Board (BKPM) will encourage investment in Sumatra, especially in the processing industry based on natural resources, such as downstream agriculture and maritime industries, says board chairman Franky Sibarani.

Franky said the government had paid much attention to Sumatra as a center of industrial growth outside Java.

He added that as a region rich in natural wealth, Sumatra has potential in agricultural and maritime downstream industries. According to him, both industries are part of investment opportunities in the Sumatra region.

'€œAs part of an effort to push for investments in Sumatra, the government has built supporting facilities in the infrastructure sector as well as developed industrial zones and special economic zones,'€ Franky said in Medan earlier this week.

He added that to show its support for infrastructure development in Sumatra, the government would build the Kuala Tanjung Port and the Trans-Sumatra toll road, among other projects.

Franky said the BKPM had also facilitated power plant projects in South Sumatra and North Sumatra.

'€œThe development of the various infrastructure projects is expected to answer investor needs regarding logistical connectivity and energy demand, so as to boost investments in Sumatra later,'€ said Franky.

As much as Rp 21.1 trillion (US$1.6 billion) had been secured to realize investments in Sumatra in the first quarter of this year, Rp 8.8 trillion of which was from domestic investors and $1 billion from foreign investors.

He added the amount was significant due to investment growth of only 16.9 percent in Indonesia. Franky said the total investment value in Indonesia in the first quarter of this year of Rp 124.6 trillion had increased by 4.6 percent compared to the fourth quarter of 2014.

He said the BKPM had projected the investment value in Indonesia this year at Rp 519.5 trillion, including that in Sumatra of Rp 75.2 trillion.

Franky added one of the methods to reach the projected investment value was for the government and the BKPM to push for a series of policies to create an investment climate in favor of investors, such as investment licensing policy reform through a one-gate integrated service center which was launched by President Joko '€œJokowi'€ Widodo on Feb. 26 this year.

'€œThe BKPM is currently simplifying licensing procedures in the oil and gas and port sectors. Besides, the BKPM and relevant ministries and institutions have also restructured licensing on land related to the agriculture, forestry and transportation sectors,'€ said Franky, adding that investors could apply for permits online from anywhere at anytime.

North Sumatra Governor Gatot Pujo Nugroho said investment value in the province this year was quite significant as it could reach 141 percent.

He expressed hope that through this event, investment would increase given North Sumatra'€™s competence in the agriculture and fisheries sectors.

Gatot added that in a bid to support investment in North Sumatra, the provincial administration had built railway lines to connect special economic zones and the Kuala Tanjung Port in Batubara regency, including the presence of Kuala Namu International Airport in Deli Serdang.

'€œHopefully, the infrastructure development carried out by the government would be able to draw investors to do business in North Sumatra, which could ultimately spur economic growth,'€ said Gatot.

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