Wednesday, October 6, 2010
Indonesia’s Tourism and Economic Zones
If I were the president of Indonesia I would have focused on 2 (two) sectors to grow economy, namely: tourism and economic zones. Tourism should be developed because we have a lot of picturesque views, while economic zones developed because we have a lot of land. To capitalize on this opportunity, the development policy should focus on supporting 2 abovementioned developments. And given the vast area outer Java, this policy can be panacea. As the policy implemented and economic growth finds a new momentum, it can also solve the problem of development disparity between Java and outer Java.
Bali-overexploited Tourism
The government has shrugged off the potency of abundant natural beauty. The longest shoreline advantage has no meaning at all to tourism industry. The world-acknowledged heritages such as Borobudur and Prambanan temple are made useless. The beauty of coral reef in Eastern Indonesia seems in vain. A lot of culture attraction failed to exist as awaited-show.
It's a pity, Indonesia's tourism only exploits Bali island. In 2009 Bali welcomed 5.75 million foreign and domestic tourists. It was nearly 90% of Indonesia's tourists.
In contrast, the famous Borobudur temple is only visited by 85,000 visitors in 2009. Compared to Angkor Watt temple in Cambodia attracted more than 1 million in the same year, Borobudur is nothing. The well-known Tana Toraja only lured 5,000 tourists in 2009. The famous coral reef Bunaken only brought in 10,000 visitors annually whereas Thailand's Pattaya has 4.5 million tourists.
The comparison between countries will let us down. In 2009, the number of tourists came to Indonesia was 6.4 million. The tiny Singapore exceeded us by 10 million. Not to mention Thailand and Malaysia were visited by 15 million and 22 million tourist, respectively.
Java-overburdened Development
Everything looks lopsided. As the tourism relies on Bali, most of Indonesia's development depends on Java.
Java contributes 57.8% of Indonesia's Gross Domestic Product (GDP). Sumatera gives 23.6%, Kalimantan 9.5%, Sulawesi 4.4%, Bali & Nusa Tenggara 2.8%, Maluku & Papua 1.9%.
Even in Java, the imbalance takes place. DKI Jakarta makes up 16.8 of GDP, followed by East Java 15%, West Java 13.9% and Central Java 8.6%.
In 2009 Java-based manufactures constituted 75% of GDP. Of 2009 GDP amounted Rp. 5.018 trillions, manufactures shared 24,069% or Rp. 1,207.83 trillions.
What is The Strategy?
The grim statistics tell us what happen and imply what to do.
The government never develops tourism outside Bali and neither develops industries outside Java. That's what happens. The government wastes many beautiful places as one of unique source of tourism, as well as lands for economic zones in outer Java. The government has overburdened Java island in terms of environment and life convenience for decades.
However the government seems not to grasp this issue. Let us see what the government does.
PT Jasa Marga, a state-owned company, has invested Rp 250 trillion to build toll roads. 150 km-long toll road out of 250 km will be constructed in Java.
Along time ago, Daendels had constructed roads from Anyer to Panarukan. From time immemorial, the Dutch had also built railway from the West Java and East Java. So it is not understandable, the modern government of Indonesia traced its former colonizer by constructing toll road in the same area. It is so silly. The toll road will diminish agriculture lands and encourage people to come to this already-crammed island.
Had the government acknowledged the imbalance of development, then it should have stopped to develop infrastructure in Java. The more development in Java, the long time needed to correct the imbalance and the more burden for the environment.
In a nutshell, stop building infrastructures in Java, instead embark on building them outside Java for 2 goals: tourism and economic zones. Consequently, Java and Bali will be healed and Indonesia's development and people will spread out across the country, to spur economic growth and have more convenient life.
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