KOMPAS Newspaper, Friday, 13 December 2013 Economic Cooperation

Jakartas Improvement Becoming Japans Attention

Tokyo, KOMPAS Improvement of Jakarta and its surrounding area becoming Japanese Government intention. It is seen in the Indonesia Japan cooperation which is formulated in the Metropolitan Priority Area Strategic Plan. In the MPA, there are 20 programs which scheduled to be finished in the upcoming 5years, which is focusing to make Jakarta become more convenient city. In MPA , there are 45 programs and 20 of them are categorized as a fast track project. From the 20 programs, more than half of it strongly related with the improvement of Jakarta, including the expansion of railway network, said the Coordinating Minister for Economic Affairs Hatta Rajasa, Thursday (12/12), after the meeting with the Japanese Foreign Minister Fumio Kishida in the 4th Steering Committee on Metropolitan Priority Area (MPA) Indonesia-Japan in Tokyo as reported by Kompas journalist, Neli Triana from Tokyo, Japan. Railway network, said Hatta, not only mass rapid transit, but also to improve the capacity of commuter railway network and railway which connecting city center with Soekarno-Hatta Airport. Besides that, realization of road network development, new port development and capacity improvement of Soekarno-Hatta Airport to reducing the burden of Jakartas problem also begin to start. Related with the efforts to tackle flooding, Japanese government consistently supports the financing of the reconstruction of pump station in Pluit, North Jakarta which is now running. Other Program which is now ongoing is the settlements improvement, such as now already start in several dense area in Jakarta. Two parties also promise to start the realization of the development of waste disposal system in Jakarta. To make Jakarta to become convenient for its citizen that is automatically convenient for the investors is the goals of Indonesia as well as Japan. For Hatta, Jakarta in the year 2020, is not only the capital city for Indonesia, but also capital city for ASEAN countries. Additional 140 billion yen Kishida stated that each programs which is planned in the MPA, considered has been done well and quite a lot of progress. For that matter, according Kishida, their party responds well for the request from Indonesia who requested for additional loan of 140 billion yen, equal to Rp. 1,3 trillion. It is planned that before the end of 2012, official request from Indonesian government already received by the Japanese government. Kishida also expressly states the importance of a new international port, namely in Cilamaya, Karawang. Acording to the Minister of Industry, M.S Hidayat, Cilamaya has attracted the attention of Japanese investors as well as investors from other countries. Big companies from Japan, Korea and other countries also intended to develop the industrial area in Cilamaya. Currently, there is 2.000 hectare of land which is ready for industrial area. That area are guaranteed not to disturb the paddy field/agricultural area in Karawang. However, if the industrial area located in Cilamaya but the port still located in Tanjung Priok, it will burdening the investor with the high cost. The burden especially came from the mobilization of goods flow and threat of losing time due to the traffic congestion in Jakarta, said Hidayat. He also dismissed issues about numbers of foreign companies which moves from Indonesia due to the high labor cost (regional minimum wage).

Big companies from several countries still stay here. Japan actually will increase its investment. Companies that reportedly moving, is a medium class garment companies from Korea. The numbers is not so significant, he said. Hatta added, in order to make the cooperation programs in the MPA Strategic Plan running well either now or in the future, Indonesia took the initiative to establish a special team. This team is responsible for establishing dialogue with the Japanese investors/companies. This team will accommodate all complaints or critics related with matters that hampering investment in Indonesia, including classic problems such as permit and land acquisition. So we immediately know what the actual problem is, so that we can solve it immediately, he said. The result of MPA Steering Committee will be reported to the top leaders of each country. Hatta, in this case will report to the President Susilo Bambang Yudhoyono, which is last Thursday also arrived in Japan to attend ASEAN-Japan Summit. It is expected that the arrival of the president can strengthtening relationship between ASEAN and Japan, particularly Indonesia-Japan. Besides that, the presence of the president also intended to improve the mutual economic relationship.