MP3EI will push growth in eastern Indonesia: Minister

 

The Jakarta Post, Jakarta | Business | Wed, April 24 2013, 2:52 PM

Coordinating Economic Minister Hatta Rajasa said that the accelerated realization of infrastructure development projects included in the Master Plan for Acceleration and Expansion of Indonesian Economic Development (MP3EI) could push economic growth in eastern parts of Indonesia.

“The Papua and Maluku corridors needs the biggest amount of investment; so, investment is being pushed to these areas,” the minister said, on Tuesday.

Hatta said commitments to invest more in areas outside Java and Sumatra could be seen from the government’s plans to expand and develop 20 new airports as well as extend incentives for private investors ready to develop eastern parts of Indonesia.

He said most of business players in real sector were currently being interested to only work on infrastructure projects in Java because both of their market and labor force were available in the area.

“It is our task to stop such things from happening. As much as we can, we will push them to invest outside Java,” Hatta said.

According to Hatta, development projects included in the MP3EI would strengthen connectivity, which in the longer term would play a vital role in transforming the Southeast Asia region into a production hub.

“We have to really push ahead in preparation for the ASEAN economic community in 2015. We have to be ready,” said Hatta.

Of a total 40 MP3EI infrastructure projects, 15 investment projects worth Rp 36.2 trillion (US$3.72 billion) are slated to begin groundbreaking in 2014 and the remaining projects, worth Rp 300.8 trillion, would begin by 2017.

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