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NTB economic zone development will not burden state budget, minister promises
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Upbeat -- State Enterprises Minister Rini Soemarno (right) talks to her special staff member Budi Gunadi Sadikin before holding a press conference after a Cabinet meeting at the Presidential Office in Jakarta on Aug.12. (Antara/Widodo S. Jusuf)
S
tate Enterprises Minister Rini Soemarno has said her ministry and related state-owned companies were striving to avoid overly burdening the state budget in their development of the Mandalika Special Economic Zone (KEK) in Central Lombok, West Nusa Tenggara, although the project may cost up to Rp 3.3 trillion (US$249.06 million).
“We have asserted that for the development of KEK Mandalika, we will not depend on the state budget. We are striving to attract alternative funding sources, including by increasing collaboration among state-owned companies,” said the minister.
She was speaking after a ground-breaking ceremony for the development of Mandalika Grand Mosque inside the KEK Mandalika complex on Saturday.
In the beginning of 2016, President Joko “Jokowi” Widodo promised a Rp 1.8 trillion budgetary allocation for the development of the special economic zone.
Rini acknowledged that the Rp 1.8 trillion fund had been offered during the discussion of the revised 2016 state budget (APBN-P). However, she added that the funds could not be realized as, for various reasons, the State Enterprises Ministry did not propose the inclusion of the project in the budget.
She further explained that many Indonesians still relied on subsidy schemes and poverty alleviation programs. “So, we don’t want to burden the state budget even more. It will be better for the state to pay more close attention to programs that will have a direct impact on the people’s prosperity."
Nevertheless, Rini said, she was certain that progress in the development of the KEK Mandalika would be seen by 2018. “We are optimistic that during the 2017-2018 period, all supporting infrastructure facilities will have been completed and 1,500 rooms of the four hotels being developed will be available,” she said. (ebf)
