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Investment board sets high investment target for Papua, West Papua

1st March 2015 | 2.203 Views
Jakarta (ANTARA News) - The Investment Coordinating Board (BKPM) sets a high investment target of Rp265 trillion in Papua and West Papua for the next five years.

The target rose from the total investment of Rp67 trillion in the countrys most backward regions in the previous five years ending in 2014, head of BKPM Franky Sibaranai said here on Saturday.

"I am optimistic the target would be achieved as investment plans in Papua and West Papua are high," Franky said.

Based on BKPMs record in the period of 2010-2014, only 40 percent of investment plans were implemented in the two provinces.

"That means Rp98.8 trillion worth of investments were nor implemented because of a number of factors," he said.

He said BKPM would facilitate the investment plans, adding a number of new investments and expansion plans have been proposed.

Under the middle term development plan of 2015-2019, the government sets economic growth target at 14.1 percent in 2015 and 17.7 percent in 2019 in Papua, he said.

Meanwhile, poverty rate in the province is to be cut to 30.9 percent in 2015 and to 21.5 percent in 2019, and unemployment rate to be slashed from 3.4 percent in 2015 to 2.8 percent in 2019.

In West Papua, economic growth target is set at 7.9 percent in 2015 and 16.9 percent in 2019, the poverty rate is to be cut to 25.6 percent in 2015 and to 17.4 percent in 2019; and unemployment rate from 5.1 percent in 2015 to 4.1 percent in 2019.

"BKPM has calculated that in order to achieve the middle term development plan target in Papua, investment has to be increased to 7.4 percent of the national target of Rp3,500 trillion for 2015-2019," he said.

He said in 2015, the investment target in the two provinces is set at Rp33.2 trillion.

He said in order to achieve the target, BKPM would launch an investment promotion for Papua and West Papua starting in June.

BKPM already formed a team to accompany investors wanting to invest in Papua and West Papua, he said.

"We will work together with the regional administrations including district administrations to cope with possible hurdles hampering investment. At least we will encourage realization of plan to build four economic zones in Papua and West Papua including in Merauke, Sorong, Teluk Bintuni and Raja Ampat," he said.

He said the four areas have potential sectors to be developed.

The Merauke economic zone is potential for development of agricultural sector and farm based processing industry, Sorong economic zone is potential for development of maritime sector and processing industry, Teluk Bintuni is potential for development of smelter and petrochemical industry and Raja Ampat economic zone is potential for tourism industry, he said.(*)