SYNERGY BETWEEN PRIVATE, STATE ENTERPRISES KEY TO LAKE TOBA'S DEVELOPMENT by Fardah

 Jakarta, July 21, 2017 (Antara) - Being developed into a world-class tourist destination, Lake Toba in North Sumatra Province needs to have better connectivity and accessibility as well as facilities for both international and domestic tourists.

          Lake Toba has been designated as one of the 10 priority tourist destinations selected alongside the Borobudur Temple in Central Java, Mandalika in West Nusa Tenggara, Labuhan Bajo in East Nusa Tenggara, Bromo-Tengger-Semeru in East Java, Seribu or One Thousand Islands in Jakarta, Wakatobi in Southeast Sulawesi, Tanjung Lesung in Banten, Morotai in North Maluku, and Tanjung Kelayang in Bangka Belitung.

           In accordance with the instructions given by President Joko Widodo (Jokowi) during a limited meeting on February 2, 2016, the government, in cooperation with the private sector, has been developing infrastructure, such as airports, roads, and ports, to improve connectivity in North Sumatra.

          Tourism Minister Arief Yahya had last year stated that on an average, revenue worth US$1 billion is expected to be annually generated from foreign tourist arrivals to Lake Toba. Lake Toba's tourism industry is expected to contribute Rp30 trillion by 2019.

          Investment in the initial stage for Lake Toba's development will reach Rp20 trillion, of which the government will allocate Rp10 trillion and the rest will be sourced from the private sector, he revealed.    
    In June 2016, President Jokowi had signed Presidential Regulation No.  49 of 2016 on establishment of the Board of Lake Toba Tourism Strategic Zone Management Authority to help expedite  the development projects in the area.

           "The Lake Toba Authority will function for 25 years, until December 31, 2041, and the period could be extended, according to the regulation effective since June 13, 2016.

         Coordinating Minister for Maritime Affairs Luhut Binsar Pandjaitan has highlighted the crucial role of the private sector in developing the Lake Toba Tourism Strategic Zone.

           Investment in the tourism strategic zone came from private companies and state-owned enterprises, he said in a statement on July 9, 2017.

           The development was under a business-to-business scheme, he noted while addressing businessmen and officials of state-owned enterprises and local and central government officials during a coordination meeting of the Authority Agency of the Lake Toba Tourism Strategic Zone (BPOPDT) held in Parapat, North Sumatra, on July 8.

           As chairman of the Board of Directors of BPOPDT, Pandjaitan invited state enterprises and private businessmen to build more hotels since there are only 710 hotel rooms in the Lake Toba area and its surroundings.

            To lure investors to participate in the development of Lake Toba and Tanjung Lesung, a business forum was organized in London in early July of 2017 by the Investment Coordinating Board.

            "Following the review on several aspects, two special economic zones (KEKs) in Tanjung Lesung and Lake Toba are now ready for investment," Nurul Ichwan, the board's London representative director, remarked.

          Hence, in the upcoming meetings, Ichwan noted that the board will facilitate cooperation and synergy among relevant ministries, provincial governments, and British investors to further discuss investment opportunities in Toba as well as nine other "New Bali" tourism projects.

           More than 50 British investors attended the forum, themed "Transforming Indonesia's Tourism Industry." The Lake Toba Special Authority head Arie Prasetyo was also present at the meeting.

           Currently, the Indonesian government is working towards accelerating the development of the Lake Toba area by taking steps, such as extending the runway of Sibisa airport in Tobasa District, constructing hotels and accommodations in the Lake Toba area, building a toll road from Kualanamu airport to Prapat, dredging and deepening the lake in the Tano Ponggol area, allocating 500 hectares of land for "ecotourism," and intensively promoting Lake Toba.

           The government has also utilized financing from the World Bank for the development of Lake Toba.

           The World Bank has agreed to provide initial funding of $6 million in January 2017 as part of a loan worth $200 million.

          The North Sumatra administrations has provided a total of 600 ha plot of land in the Lake Toba authority zone for tourism purposes.  
   The government will among other things create a world-class flower garden and a botanical garden to support the Lake Toba tourism industry.

           Lake Toba and Samosir Island, which is located in the middle of the huge lake, offer a complete tourism package encompassing beautiful scenery, unique Batak culture and traditions, and intriguing history.

           Being the largest volcanic lake on Earth, the ancient lake has been formed by a steep-walled caldera produced during the Toba volcano's eruption, the largest known volcanic eruption on the planet in the past two million years. The powerful eruption, an extremely rare event, is called a supervolcanic eruption.

          When viewed from space, the Toba caldera is one of the most striking volcanic craters on Earth, measuring 100 x 30 kilometers. ***1***
  (f001/INE/a014)
(T.F001/A/F. Assegaf/A. Abdussalam) 21-07-2017