By Vanesha Manuturi on 07:19 pm Nov 04, 2014
Jakarta. The Indonesian government must put eastern Indonesia at the center of its plan to develop the country’s maritime industry, emphasizing the untapped potential that resides in the region, according to a senior executive at the Indonesian Chambers of Commerce and Industry, or Kadin.
“We expect the government to issue new initiatives specific to the eastern region of Indonesia, which are different from Sumatra or Java, in order to attract investors away from those established markets and into east Indonesia,” said Yugi Prayanto, the deputy chief of Kadin’s maritime and fisheries division, during a press conference in Jakarta on Tuesday.
Indonesia’s seas have the potential to net as much as 7.3 million tons of fish per year with almost 80 percent of it lying to the eastern side of the archipelago, according to the latest data from the Maritime Affairs and Fisheries Ministry.
The east Indonesia region includes the Maluku islands, the Nusa Tenggara islands, Sulawesi and Papua.
Still, lack of infrastructure — specifically power plants, cold storage and ports — remains the biggest opportunity for investors looking for prospects in the area, Yugi said.
“There are many potential investors, even for exports. However, they’re still held back by the lack of knowledge and export experience, as well as costly logistics expenses,” he said.
Noting the higher cost of investing in east Indonesia, Yugi suggested the government begin to offer more incentives for businesses looking to invest in the area, such as tax breaks, in order to spur economic growth.