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Sub-regional cooperation under the framework of IMT-GT growth triangle and BIMP EAGA signed by Indonesia with its neighboring countries Malaysia, Thailand, Brunei Darussalam, and the Philippines is believed to have been running ineffectively.
Certain cooperations may have been made, but to some extent they have yet to reach the expectations of all countries involved. Many business opportunities have yet to grabbed by the private sector in Indonesia in particular, and those in neighboring countries in general.
It is for this reason that President Susilu Bambang Yudhoyono who attended the 14th ASEAN Summit in Thailand on Saturday asked the provincial administrations to get involved directly in intensifying sub-regional cooperation especially in the framework of the Indonesia, Malaysia and Thailand Growth Triangle (IMT-GT) and Brunei, Indonesia, Malaysia and the Philippines East Asean Growth Area (BIMP-EAGA)
“I really want to encourage the private sector in the provinces and districts to be more active in grabbing these opportunities,” the president said a press conference in Hua Hin, Thailand, on Saturday. Yudhoyono said after the government had prepared a roadmap on cooperation, it would not run maximally without the active participation of the regions.
“The blueprint and policies are good, but if the regions are not pro-active or if businessmen in the regions do not pick up the ball, I think, we will not gain much,” he said. Therefore, the provincial administrations in Indonesia need to motivate the private sector to use the cooperation in the framework of IMT-GT and BIMP-EAGA.
“Providing more room to the private sector and regional governments are a good opportunity for the governors in Sumatra covered by IMT-GT cooperation area as well as the governors in the eastern regions of Indonesia under the framework of BIMP-EAGA to be more active in finding cooperation opportunities,” the president said.
President Yudhoyono emphasized that the sub-regional meeting would only be successful if the governors in Indonesia, Malaysia or Thailand and also the private sector would participate in the effort.
The government, he said, could only give a cooperation framework and a blueprint while their implementation would be in the hands of the local administrations and businessmen. The president said it was the governors, regional heads, communities and businessmen in the regions that had to stand in the vanguard of making use of the cooperation opportunities.
The IMT-GT and BIMP-EAGA were established for promoting a growth area based upon sub-regional cooperation scheme focusing on investment, technology transfer, production cooperation and exploitation of natural resources in the participating regions of participating countries.
At present the IMT-GT covers five provinces in South Thailand namely Narathiwat, Pattani, Satun, Songkhla and Yala, five regions in North Malaysia namely Kedah, Penang, Perak, Perlis and Selangor and a number of provinces in Sumatra namely Aceh, North Sumatra, South Sumatra, West Sumatra, Bengkulu, Jambi and Riau, while BIMP-EAGA covers the provinces of North Sulawesi, Gorontalo, Central Sulawesi, Southeast Sulawesi and South Sulawesi, East Kalimantan, South Philippines in Mindano, Brunei Darussalam and Serawak, Malaysia.
Having heard a report from acting coordinating minister for the economy, Sri Mulyani on the development of cooperation in the framework of BIMP-EAGA, the president intensified his calls on local administrations to be active in exploiting cooperation potentials and sources that have been built at national level, Dino Patti Djalal, presidential spokesman, said.
“However, there was a lot of discussions on issue of land, air as well as sea transportation infrastructure that link the three sectors and require further development,” Dino quoted the president as saying.
Leaders of the participating countries in the framework of BIMP-EAGA during the 14th ASEAN summit in Hua Hin were reported to have agreed for the development of the BIMP-EAGA to become a reliable food producing center because of the region’s potentials, land fertility and agricultural knowledge.
“There have been calls on local administrations to be active in exploiting cooperation potentials and sources that have been built at national level,” Dino said. In the meantime, the Asian Development Bank (ADB) has expressed readiness to help the process of integration of areas in the BIMP-EAGA.
“The ADB president has just expressed his commitment to continue helping develop the cooperation. Being discussed now is how to smoothen border-crossing trade and others and the best incentive to increase investment, trade, tourism and economic prosperity,” Dino said.
Dino said leaders of the participating countries had also proposed a mechanism for discussing the cooperation more integratedly. The IMT-GT and BIMP-EAGA cooperation frameworks have two functional mechanism namely an annual ministerial- and senior official-level meeting and a business council jointly run with the private sector.
The two sub-regions have large economic potentials in view of their vast area, abundant manpower and natural resources and a vast market of 90 million people.
However, the IMT-GT and BIMP-EAGA will be a promising growth magnet if they are combined with the financial strength and business expertise of the private sector. The region offers economic opportunities in industry and farming including on commodities such as rubber, palm oil, fruits and vegetables, marine products, oil, natural gas and wood, Dino said. ( ant/ Eliswan Azly )