E KALIMANTAN EXPECTED TO BECOME STRATEGIC ECONOMIC GROWTH CENTER by Fardah

Jakarta, Oct 29, 2012 (ANTARA) - East Kalimantan is known as a resource-rich province and is one of the best-established mining areas in Indonesia because of its oil, natural gas, coal and gold reserves as well as large forest areas.

        Located on Kalimantan Island, East Kalimantan is the second-largest Indonesian province and has two major cities: Samarinda, which is the capital city and a centre for the timber industry, and Balikpapan, which is considered a petroleum centre because of the large number of oil refineries located there.

         While inaugurating seven mega projects in East Kalimantan on October 24, 2012, President Susilo Bambang Yudhoyono praised the development of East Kalimantan, noting that the province can no longer be called a "sleeping giant."
   "I remember when I first came to East Kalimantan in my capacity as a president eight years ago to speak with leaders in the region. At the time, I had asked them not to let Kalimantan become a 'sleeping giant,' despite its huge potential. Fortunately, Kalimantan, especially East Kalimantan, has advanced quickly," he said.
    To support fast growth in the region, President Yudhoyono introduced two mega projects and laid the cornerstone for the development of five projects worth around Rp19 trillion.

        The two mega projects are the operation of the Kariangau international container port in Balikpapan and the Kalimarau airport in the Berau district.

        The five other projects to be conducted are the building of the Sepinggan airport terminal in Balikpapan, PT Pupuk Kaltim V, the new Samarinda airport, the Maloy international port and industrial zone and the Mahakam IV Bridge.

         "I hope the five projects will be completed to perfection," he stated, adding that he expected the Maloy international port to become a special economic zone.

        President Yudhoyono appealed to regional governments to be more creative in developing their regions through fiscal decentralization.

    "East Kalimantan must become a strategic economic growth centre."
   The pace of development in East Kalimantan can be gauged by the air traffic at the Sepinggan airport, which has become the fourth-busiest airport in the country, according to Yudhoyono.

        "I hope it will become a strategic hub not only in Indonesia but also in East Asia in the future," he remarked.

        The seven projects in the province are the third of six corridors in the Master Plan of the Acceleration and Extension of the Indonesian Economic Development (MP3EI).

        The six Indonesia Economic Corridors referenced in the MP3EI projects are Sumatera, Java, Kalimantan, Sulawesi, Bali-Nusa Tenggara and the Papua-Maluku Islands.

         Under the MP3EI program, President Yudhoyono has set a target of investments worth Rp4,500 to Rp5,000 trillion until the year 2025 to boost economic development.

        The Kalimantan Corridor is focusing on the development of the Centre for Production and Processing of National Mining and Energy Reserves.

          For East Kalimantan alone, MP3EI projects in the province were worth a total of Rp19 trillion, Coordinating Minister for Economic Affairs Hatta Rajasa said.

         East Kalimantan Governor Awang Faroek Ishak acknowledged that the projects to be built under MP3EI in East Kalimantan are located in diverse areas. Some of them are ready for operation, according to Awang.

          The projects include the building of the Sepinggan airport terminal, the airport at Samarinda Baru, the Maloy Industrial Estate and International Port, the Samarinda Twin Bridge and the fifth unit of the PT Pupuk Kaltim V fertilizer factory.

         Faroek Ishak noted that the investment for the development of the Kariangau international container port was worth Rp757 billion, while the Kalimarau airport cost almost Rp460 billion.

           The Kaltim V fertilizer plant cost Rp6.1 trillion; the Sepinggan airport, Rp1.8 trillion; the Maloy port and industrial zone, Rp4.771 trillion; the new Samarinda port, Rp1.9 trillion; and the Mahakam bridge, Rp252 billion.

         East Kalimantan is also building an 18-kilometre access road to the Palaran container terminal from the city of Samarinda.

        Estimated to cost Rp358 billion with a completion date in 2014, the project has been under construction since last year, a senior official of the provincial public works office, Ersyani, pointed out recently.

         The project will include a second bridge that will be built alongside the old Kuning Bridge to create a twin bridge spanning the river crossing at Jl. Ampera.

          The new bridge has been designed to last for 100 years with a higher sustaining capacity than the old one since it will bear heavier traffic from container trucks.

          One of the province's richest areas, which is waiting for investors to develop its oil reserves, is Sebatik Island¿part of Nunukan District, East Kalimantan.

         Nunukan District is near the border shared by Indonesia and Malaysia.

         East Kalimantan Province is bordered by Sabah (Malaysia) in the north; South Kalimantan Province in the south; Central Kalimantan Province, West Kalimantan Province and Serawak (Malaysia) in the west; and the Makassar Strait and Sulawesi Sea in the east.

         Furthermore, to be more effective in managing the country's second-largest province and securing its borders, it has been suggested that East Kalimantan Province should be divided into two provinces: East Kalimantan and North Kalimantan.

           In a recent plenary session led by the House of Representatives' Speaker Marzuki Alie in Jakarta, the Chairman of the House of Representatives Commission II Agun Gunanjar said that the Commission had endorsed the establishment of a new North Kalimantan Province.

         Gunanjar stated that the division of East Kalimantan into two provinces could be a viable solution to optimise public services and shorten the range of government control, so the administration can be more effective and efficient.

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(f001/INE/a014)