Ary Hermawan, The Jakarta Post, Jakarta
The Transportation Ministry will focus its capital spending on remote and disaster-hit areas in 2008, with Rp 3 trillion (US$333 million) having been set aside to build and expand airports and seaports in Papua, Maluku and North Sumatra.
According to the ministry's 2008 business plan, these development projects are based on the assumption that the ministry will get Rp 15 trillion next year, a 49 percent increase over its budget for this year.
"We will distribute the funds proportionately to those provinces ... infrastructure development in Papua and West Irian Jaya has been identified as a priority," Transportation Minister Hatta Radjasa said last week.
The ministry will allocate Rp 1 trillion for expanding existing ports and airports, and building new ones in the two eastern provinces. "This is one of the biggest items," Hatta said. It includes the expansion of seven strategic ports in Papua at a cost of Rp 86 billion.
The construction of more seaports and the provision of more ferries archipelagic provinces, such as Maluku, North Maluku, East Nusa Tenggara and North Sulawesi, would also be prioritized so as to shorten travel times in these regions.
"Especially in Maluku, it can involve a month's wait for a ship from one island to another at the moment," Hatta said. The ministry plans to allocate Rp 239 billion on the development of the sea-transportation sector in the province.
Another large chunk of the money will be spent on the construction of the new Kualanamu Airport in North Sumatra (Rp 930 billion) and Lombok Baru Airport (Rp 515 billion) in West Nusa Tenggara, and on expanding Hasanuddin Airport, which will cost about Rp 491 billion.
The ministry will continue funding the construction of the Kualanamu Airport and Hasanuddin Airport through 2009, Hatta added.
The ministry's plan also states that it will provide Rp 200 billion for the expansion or construction of 27 small airports in remote and disaster-hit areas, including Banda Aceh, Nias, Meulaboh, Nunukan, Atambua, Alor, Tanah Merah and Nabire.
Hatta said capital expenditure in the transportation sector would be aimed at supporting economic growth.
"Transportation is the backbone of the economy as it has an important role to play in reducing the costs of distribution in every industry," he said.
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