Number of disadvantaged regions down, minister says

Desy Nurhayati, The Jakarta Post, Jakarta

State Minister for the Development of Disadvantaged Regions Lukman Edy said Wednesday that 28 regencies had been dropped from the list of 199 underprivileged regencies nationwide due to the significant progress they had made during the last three years.

"After three years of the United Indonesia Cabinet, we have made significant improvement in the development of disadvantaged regions with 28 regencies ... being declared developed regencies," Lukman told a media conference on the evaluation of the ministry's programs.

There are 457 regencies nationwide, with 199 divided into six categories based on their backwardness index which comprises local economics, human resources, infrastructure, regional budget, accessibility and regional characteristics.

The ministry also classifies the regencies into four quadrants. The first covers extremely disadvantaged regions with high growth levels; the second comprises moderately disadvantaged regions with high growth levels; the third quadrant consists of moderately disadvantaged regions with low growth levels; and the fourth quadrant covers extremely disadvantaged regions with high growth levels.

"During the period of 2004 to 2007, 11 out of 199 regencies improved from the first to the second quadrant," Lukman said. In 2004, 86 regencies belonged to the first quadrant, while in 2007 the figure decreased to 75.

As many as 183 regencies, however, have yet to make any significant progress. Five regencies dropped from the third to the fourth quadrant.

"Those included in the second and third quadrant, or 33 regencies in total, have the potential to improve faster than those in the third and fourth quadrants," the minister said.

The 33 regencies include Madiun, Situbondo and Rembang in Java; Kuantan Singingi, Natuna and Pidie in Sumatra; Gunung Mas, Sambas and Kutai Barat in Kalimantan; and Takalar, Tana Toraja and Pinrang in Sulawesi.

To develop disadvantaged regions, the government has allocated Rp 98.6 trillion (US$10.4 billion) or 31 percent of its total state budget of Rp 311.9 trillion.

Of the Rp 98.6 trillion, the biggest portion -- or about Rp 72.8 trillion will be used for community empowerment programs, while the remaining will be allotted to develop local economics, strengthening local institutions, reducing isolation in regions and managing disaster- and conflict-prone areas.

For the period of 2008-2009, Lukman said the ministry would undertake Green Development Projects in underprivileged regencies.

The projects consist of Green Energy (building electricity grids), Green Estate (planting millions of trees), Green Bank (establishing micro-financial agencies), Green Movement (empowering local people's organizations) and Green Belt (developing border areas).