T

he administration of Papua, Indonesia'€™s poorest and most remote province, is working to attract more domestic and foreign direct investment to the region to develop its untapped resources.

Papua Development Planning Board (Bappeda) head Muhammad Musa'€™ad has said the administration aims to increase investment in the region by 20 to 30 percent next year.

'€œOur mid-term regional development plan [RPJMD] has set 2016 as the year to increase investment in the province,'€ he said recently.

He did not mention the province'€™s investment target for this year.

Investment Coordinating Board (BKPM) data said that Papua recorded domestic direct investment (DDI) realization of Rp 995.82 billion (US$71.95 million) in the first nine months of the year, while foreign direct investment (FDI) realization reached $831.39 million.

Papua Governor Lukas Enembe said, in his speech read by Musa'€™ad, that his administration had drafted several policies to develop the region'€™s investment potential.

The policies included encouraging the establishment of new local potential-based economic zones, simplifying licensing procedures and involving people and commodities in economic activities.

To set a guideline for investors planning to invest in Papua, the administration has divided its area into five economic development zones (KPE). The zones are Mamta, Saereri, Mee Pago, La Pago and Anim Ha, where potential activities from plantations, mining, fisheries to manufacturing.

The administration also provides One-Stop Integrated Services (PTSPs) at all government levels to ease license issuance procedures. It has also developed the Simtaru spatial information and management system to ensure potential investors can attain comprehensive information about land.

Lukas said such measures were taken to ensure openness in investment procedures and to create a conducive business climate.

'€œThe administration, along with all Papuans, guarantee that the region is safe and convenient for investment,'€ he wrote.

BKPM economic zones subdirectorate head Noor Fuad Fitrianto said during the event that problems faced by potential investors in Papua revolved around land ownership disputes, fishery license issuance, contract renegotiations, gas allocation and pricing.

To weather such obstacles, the government had offered several facilities for investors, such as tax and other area-based incentives, and reduced several bureaucratic obstacles, he said.

'€œThe government relies on Papua and its neighbor West Papua to boost investment in the country,'€ he said, adding that Papua had around Rp 120 trillion worth of investment potential, as stated in investment principle licenses submitted to his office. However, only 40 percent of the amount had been realized.

To accelerate investment in Papua, Fuad said, the government had formed a team to supervise the region. It also plans to establish the Teluk Bintuni industrial estate in West Papua and two special economic zones (KEK) in Papua'€™s Merauke and West Papua'€™s Sorong as part of its plan to establish 14 industrial estates and seven KEKs in eastern Indonesia by 2019 to spread investment and economic development.