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Govt to build border regions into investment-preferred areas
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Coordinating Political, Legal and Security Affairs Minister Wiranto hands over a national flag to Kampung Mosso head Stenly Tanfa Chilong at the Indonesia-Papua New Guinea border on Thursday. (Antara/Indrayadi)
D
espite budget cuts that have reduced the government’s capacity in running programs, the Villages, Disadvantaged Regions and Transmigration Ministry has maintained efforts to focus on developing border regions into preferred investment destinations.
The ministry saw a Rp 2.08 trillion (US$158.18 million) cut in its budget allocation this year, which greatly reduced the government’s capacity to develop remote areas and border regions, the ministry’s director general for the development of specific areas, Suprayoga Hadi, told The Jakarta Post at his office in Jakarta on Monday.
However, he reiterated that the government would not scale back its priority to develop border regions and would offer incentives to potential investors.
“We believe if incentives, such as a tax allowance and special economic zone status, are applied to border areas, investors will be eager to develop the areas," Suprayoga said.
Currently, five border regencies are being prioritized, namely Morotai (North Maluku), Sarmi (Papua), Sabu Raijua (East Nusa Tenggara), Western Southeast Maluku and East Lombok (West Nusa Tenggara). Morotai has been declared a special economic zone for tourism.
"Morotai is just a model. It is not necessarily to be a special economic zone, but at least we need to negotiate with other ministries to make other border regions enjoy almost the same incentives as that of Morotai," Suprayoga said. (ags)
