The Six Economic Corridors Sulawesi Lying in the center of Indonesia, the Sulawesi Economic Corridor is poised to be the center of agricultural production, fisheries, oil and gas, and mining .
The agricultural sector, the largest contributor to the region, is hindered by a lack of adequate economic and social infrastructure. The Master Plan targets optimization of land use, the creation of new rice paddy fields, and the rehabilitation and conservation of agricultural land. Sulawesi is the biggest fishery products producer nationally. In response to the challenges of overfishing, the Master Plan aims to develop aquaculture and increase added-value products and activities. Nickel production is the most advanced in Indonesia. However more growth is sought in downstream industries such as nickel product refining. Oil and gas reserves are considered to be low, these need to be properly identified and explored.
Bali Nusa Tenggara Economic Corridor’s obvious strength is The Bali- Nusa
tourism, together with
agriculture which is linked to a strategy to maintain a green, all-organic economy .
The corridor accounts for 15% of national hotel capacity – Bali alone accounted for 40% of tourist in 2010 – however overall average tourist spending per day, and length of stays, is low compared Thailand and the Maldives. The Master Plan therefore plans to realize untapped potential in these areas through improved security, better marketing and development of new tourist destinations. The potential for MICE (meetings incentives, conventions and exhibitions) has also identified, with two provinces the focal point for marketing efforts. Investment in infrastructure such as airports, road and rail networks has also been highlighted in the Master Plan.
Java Home to the nation’s capital and over half the country’s population, Java will develop into a service-based economy, the main focus being on the food and beverage industry, textiles, transportation equipment, shipping, ICT and defense equipment .
The food and beverage sector is the biggest employer. As import duties on raw materials come down, and tariffs on end products rise, the sector will receive an added boost. In textiles, a domestic cotton industry could help develop an emerging garment design industry in Jakarta. Java accounts for 80% of Indonesia’s equipment and machinery sector. The Master Plan aims to boost car sales at home and abroad and harmonize automotive industry standards to enable competition on a global level. Shipping and defense are both key industries and mandated for further development. ICT development is essential to improve competitiveness and create a knowledge-based economy. Expanding broadband access and harmonizing policies and government programs will help expand the use of ICT in economic activity and build digital content industries.
Sumatra Heralded as the center for production and processing of natural resources and the nation’s energy reserves, the Sumatra Economic Corridor’s strategic location also positions it as economic gateway to the European, African, South Asian, East Asian and Australian markets.
To boost its core strengths of palm oil, rubber, coal, steel and shipping, Sumatra needs to significantly upgrade its infrastructure, finance and human resource development. Palm oil and rubber production are hampered by low productivity due to low seed quality and non-optimal land utilization, among other things. Investment in research, training, financial assistance, education and infrastructure will help develop the sector. Coal, shipbuilding and steel are also expected to benefit from updated and expanded infrastructure such as the Sunde Straits Bridge connecting the island with Java.
Kalimantan Kalimantan has abundant resources, with oil and gas and mining contributing around half of the total GRDP. However production has declined so there is increasing pressure on other sectors, namely coal, palm oil, steel, bauxite and timber. As Indonesia’s demand for oil grows, the Master Plan proposes promoting exploration of new oil and gas fields, as the Kalimantan Economic Corridor is known to have large reserves. It also contributes 37% to the country’s total production of liquefied natural gas. Investment in the powerful coal sector is expected to raise production more then sixfold. Oil palm plantations occupy 53% of the total plantation area in the region, and the focus will be on increasing production as further expansion is limited.
In the mining sector, the focus will be on creating a self-sufficient steel industry and downstream production capabilities. The home of vast forested areas, the potential for the timber sector is huge, as we as the opportunity to develop non-timber products such as fruits, silk and bamboo.
Papua The Papua-Kepulauan Maluku Economic Corridor will focus on five economic activities: food agriculture, copper, nickel, oil and gas , and fisheries.
Its flat, fertile terrain is ideal for food production. The MIFEE (Merauke Integrated Food and Energy Estate) program consists of large-scale cultivation of crops by adopting the concept of agriculture as an industrial system based on science and technology, capital, and modern organization and management. Activities range from food crops, horticulture, and animal husbandry to plantation and aquaculture. The Master Plan will nurture and develop MIFEE with investment in infrastructure, research and education. In mining, Indonesia’s third copper smelter will send production into surp lus, and focus on added value activities for nickel will attract more investments in nickel mining and exploration. Oil and gas production will be optimized by balancing capacity of exports and imports and fine tuning legislation and licensing. In fisheries, tremendous opportunities in developing aquaculture, and investment in ports, marketing and power generation should help boost the industry.
