Creating Sound Investment
    Category: MP3EI Coverage By : Sonya Angraini Read : 1292 Date : Sunday, May 12, 2013 - 15:54:23

    Ahmad Zamroni / Forbes Indonesia

    The Master Plan for Acceleration and Expansion of Indonesia's Economic Development (MP3EI) is the most complex and ambitious development program undertaken by Indonesia. Although the project is overseen by Coordinating Minister for Economic Affairs Hatta Rajasa, many others are needed to help implement the details. Luky Eko Wuryanto is arguably the most important of those persons after Hatta himself, through his two jobs: as head of Committee for Acceleration and Expansion of Indonesian Economic Development (KP3EI) secretariat and as the deputy for infrastructure and regional development at the Coordinating Ministry for Economic Affairs. Luky is effectively responsible for ensuring that the Rp 4.9 quadrillion or about $500 billion slated to be invested by 2025 will be realized as actual investment.

    Luky is deeply involved in the MP3EI project. On February 2011, he attended a key meeting called and chaired by President Bambang Susilo Yudhoyono in Bogor. It involved all stakeholders including officials from the administration and regions, the state-owned enterprises and private investors. The concept of MP3EI was discussed and projects were proposed for inclusion under the MP3EI umbrella. After the one in Bogor, there were other meetings that led up to the official launch of the MP3EI in May 2011 by the President. “The MP3EI is intended to build investors' confidence because under the program the government has pledged to develop key infrastructure,” says Luky, 52, who has a PhD in Regional Development Economics from Cornell University. Other goals of the MP3EI, he says, are to cut excessive red tape, eliminate conflicting regulations and encourage growth in regions outside of Jakarta and Java.

    To accomplish these goals, the MP3EI divides Indonesia into six corridors. First is the Sumatra corridor, which will be the center for production and processing of natural resources and national energy sources because of its wide plantation area as well as oil sources. Second is Java, which is designed to be the center for industrial development and services, as Java is the traditional location for manufacturing in Indonesia. Next is Kalimantan as a production and processing center for mining and national energy sources. It has the biggest forested areas compared with other corridors and major coal mining operations. Sulawesi is designed to be the center for agriculture, plantation and fisheries. It is the home for Indonesia's top commodities such as cocoa and the biggest rice producer. Then there are Bali and Nusa Tenggara, which will be the
    center for tourism and livestock. Bali remains the country's top tourist destination and Nusa Tenggara is developing its region to become an alternative destination. Last but not least, there are Papua and Maluku Islands as the center for natural resources. It has 2.5 billion tonnes of gold and copper potential and the mining sector contributes more than 50% of the regional economy.