Workers haul bags of cement at Sunda Kelapa port in north Jakarta on Tuesday. The Indonesian economy is estimated to have expanded 4.3 percent this year. (Photo: Bagus Indahono, EPA)
It is hard to imagine that more than two centuries ago the Dutch traded Manhattan to the British for Ambon, which like many of the islands that would eventually become part of eastern Indonesia was thriving on the nutmeg and clove trade while Manhattan was a barren piece of land.
How times have changed. Eastern Indonesia is today virtually cut off from the world while Manhattan is arguably the center of the financial world. Nusa Tenggara, Maluku and Papua, which make up eastern Indonesia, are among the most backward regions of the country. According to a 2007 World Bank report, this region has far lower levels of access and assets compared to Java-Bali or even Sumatra and Kalimantan. It also suffers from lower returns on education and far higher levels of informal employment. Its remoteness translates into lower levels of access to basic services and infrastructure.
In a nutshell, this means that eastern Indonesia has been neglected by the central government for much of the country’s history. Its people suffer silently, devoid of political and economic power despite the rich potential the region offers in terms of tourism and the marine industry.
It is thus heartening to note that Vice President-elect Boediono is on a swing through the region to explore new development models and study viable infrastructure projects. The noted economist visited Ambon before flying on to Papua. Accompanied by transportation experts, he is on a fact-finding mission to develop this forgotten part of the country.
So far the projects on the table include ports, airports, roads and highways. The vice president-elect should add schools, power stations and tourism infrastructure to create both human capital and greater economic opportunities for residents.
Better infrastructure, more schools and hospitals will attract private investment into the region. Entrepreneurs will risk capital if they know new opportunities might open up. This will create jobs and raise the overall standard of living for people who currently survive primarily on agriculture.
Improving economic opportunities will translate into narrowing the income and poverty gap between eastern Indonesia and the rest of the country. It will also expand the national economy as new areas open up and more wealth is created. The people of eastern Indonesia deserve the opportunity to improve their lives. They have been neglected for too long, but with a growing economy they too should receive a share of the economic pie.
Regional development disparities are a salient feature of poverty in Indonesia. The people of eastern Indonesia may not be starving but neither do they have access to the services that make up modern life.
Economic growth has been and will continue to be fundamental to reducing poverty in Indonesia, and no matter where citizens live in this vast country, if given the right opportunities they will strive to improve their lives.
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