$50b in Work Is Said to Be Under Way As Part of Economic Development Push
14/12/2011 (Jakarta Globe) - Hatta Rajasa, the coordinating minister for the economy, said on Tuesday that the government had started 91 projects worth at least Rp 461.6 trillion ($50.7 billion) since May.
The spending falls under the Master Plan for Economic Expansion and Acceleration (MP3EI), a multistage economic plan to build six economic corridors spanning the archipelago.
“Since May 2011, Rp 461.6 trillion worth of projects have started,” Hatta said. And another 73 projects worth Rp 359.1 trillion will start next year, he added.
The government’s master plan for development envisions six economic corridors, where business activity will be concentrated according to the potential and resources of the different areas.
Corridors are planned for Sumatra, particularly along the western coastline, which will specialize in agriculture and energy; Java (industry and services); Kalimantan (mining); Sulawesi and North Maluku (agriculture and fisheries); Bali and Nusa Tenggara (tourism and food security); and Papua and Maluku (natural resources).
The master plan hopes to see the country’s gross domestic product balloon to about $4.5 trillion by 2025, from $702 billion last year. If that target is reached, it would likely put Indonesia among the 10 largest economies in the world.
Hatta said the government had listed 396 infrastructure projects and other activities to make Indonesia one of the 10 biggest economies by 2025.
It won’t be cheap, however, and the development master plan calls for about Rp 4,000 trillion of spending from 2011 to 2014. The government says it will provide 10 percent of that, with the rest to come fro the private sector
Dedy Supriadi Priatna, deputy for infrastructure development at the National Development Planning Agency (Bappenas), said the MP3EI included projects in 22 sectors, mostly natural resources and manufacturing.
He said some of the projects would involve developing more palm oil, rubber and cocoa plantations. There are also plans to develop nickel and copper mines, oil and gas fields, textiles and shipping, he said.