BANTEN'S NEW INTERNATIONAL PORT COMPLEX AT BOJONEGARA WILL BE THE LARGEST IN SOUTH EAST ASIA

DJOKO MUNANDAR Governor Banten Province

The need to build a unique provincial identity is the main focus for the new government in Banten, a recently-created province in the far west of the island of Java.
Formed in October 2000 after splitting from neighboring West Java, its first Governor, Djoko Munandar, was only elected in December 2001.
Now, he says, it is time to translate the benefits of this new-found autonomy into an improved lot for the region’s eight million people.
“We want to increase their standard of living by improving conditions in very specific and essential areas, namely health, education and the environment,” says Mr. Munandar.

With a thriving economy, Banten already has much going for it including its position, sandwiched between Java and the island of Sumatra; the port of Merak is the main crossing point for ferries to the island.
Banten already ranks highly in terms of its popularity with foreign investors, in part because of its close proximity to the national capital, Jakarta. Indeed, Jakarta’s international airport is actually located in the province, although it is not managed by the Banten government.
The province also boasts simplified and clear investment procedures which have proved quite a lure for many foreign companies. In 2001, the local investment board approved some 118 foreign investments equal to about $1 billion.

RUGGED SCENERY can be found in the Ujung Kulon national conservation park and along the shore.

“The central government can work with us as we are near Jakarta, and we could make this a very important region,” adds Mr. Munandar.
Much of the province is still essentially rural with about 60 percent of the laborforce employed in the traditional agricultural sector.
Key crops from the province include rice, corn, soya bean, banana, durian fruit, lychee and mango, primarily sold on the domestic market. It is also an important producer of rubber, coconut, curd palm and bamboo. Banten officials would like to see some of this produce go to export markets as well as a greater emphasis on added-value production.
With a long stretch of coastline along the western edges of Java, it also holds enormous potential for fishing activities.

In addition to agricultural processing and fisheries, there is investment potential in a number of other core areas. These include the development of industry and manufacturing, tourism and mining.
The manufacturing sector is well developed and there are more than 1,600 medium-scale or large manufacturing plants in the province, mainly located on the northern side near Jakarta; the southern side of the province is the agrarian region.
Mr. Munandar wants to encourage investment in roads and railways, not only to knit these regions together, but also to put Banten firmly on the map in terms of international trade. This includes attracting greater numbers of tourists to the province, whose capital city is Serang.

“Cutting traffic and improving the infrastructure within Banten, for example by constructing a double-track railway, will help us to attract tourists,” he says. “We want to increase efficiency within the region to make traveling easier. The environment should also be improved by eliminating traffic jams and building a coast road.”
He admits that the local administration needs financial assistance to make this happen. “Infrastructure is of vital importance to Banten if we are to increase productivity and trade satisfactorily at a domestic and international level,” he says. “Foreign investment is the key. If we are to develop effectively and efficiently, we need financial resources, otherwise we can only dream of improving.”

One major project now under construction is Banten’s new international port facility. “In the near future we will have an international harbor,” he says. “It will be the biggest in south-east Asia and it is now under construction. We will be calling the port Bojonegara.”
He adds: “We will promote our port as one with capacity for international trade.”
In the minerals sector, there is scope for coal mining in the Lebak and Pandeglang regencies, cement production and exploration for other minerals.
Of tourist attractions, he says, the province offers sandy beaches, the Ujung Kulon national conservation park, and many cultural and historical attractions. The historic town of Banten – a wealthy maritime trading hub in the sixteenth century – was where the Dutch first arrived in Java in 1596.

“Tourism is another area we would like to concentrate on for potential investment and exploitation,” says Mr. Munandar.
Around 20 multinational companies operating in Banten have launched an organization called the Banten International Business Association to help the local government to develop business in the province and attract investors to the area.
“If we want to make this province prosperous, we need to work with our people,” he says. “We also need to become more aware of what is going on outside our province as well as outside our country.
“By having greater access to global information we can then understand the potential effects of external market forces. By doing this, we will be able to take greater advantage of opportunities for trade with the international community,” says Mr. Munandar.