A lot of investors are now turning their eyes to Aceh, a province with the largest reserves of oil and natural gas, fertilizer, agriculture, and also natural resources that have not yet been exploited.
After more than six years of struggle to recover from the December 26, 2004`s devastating tsunami and decades of bloody conflict, Aceh people will see a better future for economic development and investment following a conducive security situation in the province.
Aceh Promotion and Investment Board (BIP) spokesman Anwar Muhammad said in the provincial city of Banda Aceh over the weekend that at least 85 foreign private companies have planned to invest in various sectors in the province with a total investment value of Rp50 trillion (US$5.8 billion).
"As many as 85 foreign private companies in the past three years planned to invest in various sectors in the province," Anwar Muhammad said on Saturday.
Anwar said foreign private companies intended to invest in Aceh because of the conducive security condition in addition to adequate natural resources in the province.
But he pointed out that of the total investment value of Rp50 trillion, only around Rp7 trillion (US$816,3 million) has been realized.
According to him Aceh was the most favorite province in Sumatra island for foreign investors of its abundant natural resources.
"A number of foreign investors in the near future will start gas and oil exploitation of two gas and oil blocks in the province with a total investment of Rp6 trillion (US$699.7 million)," he said.
Anwar said the biggest investment potentials in Aceh included agribusiness, fishery, mining, oil and gas, tourism, and some other resources.
Therefore, he mentioned that one of the local government efforts to net as many foreign investors as possible was intensive promotion and cooperation with Indonesia-Malaysia-Thailand Growth Triangle Forum (IMT-GT).
"We are going to use the forum as one of our efforts to introduce Aceh`s investment potentials to both domestic and international business enterprises," Anwar Muhammad said.
Thanks to its natural beauty and extensive rubber, cocoa, coffee, and palm oil plantations, and shrimp farms, Aceh province has significant investment potential.
Therefore many investors have invested and want to invest in the province but unfortunately they are at present hampered by lack security and the imposition of Islamic syariah law.
Aceh Provincial Legislative Assembly`s Commission-C member Zulkifli said in Lhokseumawe in October 2010 that unstable security condition and the imposition of Islamic syariah law had hampered foreign investors to invest in the province.
"One thing the foreign investors fear most is the unstable security because the local government has yet to be able to ensure it, and the imposition of Islamic syariah law," Zulkifli said.
But to the Islamic syariah law, Zulkifli said it could be explained to the foreign investors that the law was one of the local regulations that has to be obeyed.
"It does not mean that we do not like Islamic syariah law, but in reality it hampers regional development and foreign investors to invest in the province," Zulkifli said.
Zulkifli admitted at the time that he dared to make such a statement because he had received a lot of complaint from some foreign investors who would like to invest in Aceh but they were hampered by unstable security condition and the imposition of the Islamic syariah law.
"It is not a matter of like or dislike. Investors in reality want to invest in Aceh in a completely secured situation," Zulkifli said.
He added that the existing regional funds for the development in Aceh were insufficient.
But to develop and exploit the natural resources in the province, Zulkifli said the tourism sector would give a big contribution to regional revenue.
"We have a beautiful landscape like in other provinces but why don`t we make use of it to increase out welfare?. Imagine that certain tourism resorts in Aceh had to be closed because of Islamic syriah law," he added.
He said that because of those factors, a number of investors from South Korea last year withdrew themselves from Aceh but such a situation did not influence other foreign investors in the province to do the same.
The intention of foreign investors to invest in Aceh was due to a positive result from Aceh Investment Summit in November last year.
The summit was hosted by by Indonesian Chamber of Commerce and Industry (Kadin), American Indonesian Chamber of Commerce (AICC), Aceh Business Club (ABC), Aceh Business Working Group (ABWG), Aceh Government, and supported by he Coordinating Ministry for Economic Affairs.
Various businesses and investments in Aceh were explored in the Aceh Business Summit to reach out to international and national traders by exchanging ideas, discussing potential business partnership between Aceh and various groups around the world.
Meanwhile, Syaiah Kuala University (Unsyiah) economic observer Rustam Effendi said in Banda Aceh that the ongoing Aceh Fair from May 8-15, 2011 would attract as many foreign and domestic investors as possible to invest in the province.
"Aceh Fair is a good strategy for the local government to introduce the local potential products to the investors who are interested in investing in Aceh," Rustam Effendi said.
He said the Aceh Fair would show the investors that the province is now conducive for investment.
Therefore he expressed hope that such an event to promote all potential products from 23 districts in the province would be stepped up to attract as many investors as possible in the future.
(Uu.O001/HAJM)
Reporter: by Otniel Tamindael
Editor: Priyambodo RH
Copyright © ANTARA 2011
