JAKARTA – Investments from the private sector have played an important role in helping new economic sources grow outside of Java Island and accelerating development equality, particularly in frontier, outermost, and least developed regions (3T). One of the private parties taking part in the development of 3T regions is Korindo Group. One of the concession lands owned by the oil palm company is located in one of the most eastern region of Indonesia, which is Boven Digoel, Papua Province.
Through one of its subsidiaries, PT Tunas Sawa Erma (TSE), Korindo intensifies infrastructure development and skill training for the local community as a support towards economic independence.
Sustainability Manager of Korindo Group, Luwy Leunufna revealed that in its business operation, the company always refers to the five pillars of the main program, namely education/social culture, health, economy, environment, and infrastructure.
“Before designing a business strategy, we prioritize on the form of contribution we can give to the surrounding community,” he said when met by Antara some time ago in Jakarta.
Established in 1998, Korindo’s oil palm concession in Boven Digoel became one of the largest contributors to the Local Government Revenue (PAD).
Korindo is also active in providing scholarships to hundreds of children in Merauke and Boven Digoel. It was recorded that 124 children have been receiving scholarships ranging from elementary level to college level.
“The provision of access to a decent education becomes one of our priorities in improving the quality of human resources in remote areas like Boven Digoel,” Luwy concluded.
It is known that in the State Budget Draft (RUU APBN) delivery speech for Fiscal Year 2020 some time ago, President Joko Widodo stated that the State Revenue and Expenditure have not given a significant contribution to the economic growth. Therefore, he encouraged the creation of policy that supports private investments.
“The most important thing is creating a good ecosystem so the private sector can grow and thrive. We (the government) should encourage investments to grow properly,” Jokowi affirmed.
On the other hand, the Coordinating Minister for the Economic Affairs, Darmin Nasution, also said that the government had set up various incentives to encourage the inflow of private investments towards infrastructure development projects.
“We invite the private sector, so the State Budget would no longer be used to build infrastructure,” Darmin said.
The government continues to commit in maintaining a healthy and sustainable fiscal management focusing on the national development priority in infrastructure, poverty alleviation, narrowing the income and regional gaps, and expansion of employment opportunities.
The economic growth and employment opportunities are expected to be achieved through increased investments which are kept being encouraged through licensing facilitation and improvement on investment climate by using the State Budget as a catalyst and the driving force of the development.