Sumatra governors seek links to foreign financial institutions

Fadli, The Jakarta Post, Batam

The governors of Sumatra say they will seek approval from the central government to cooperate with foreign financial institutions to fund infrastructure projects in Sumatra.

The decision was reached during the Sumatra Governors Forum, held in Batam on Nov. 29 and 30. The forum brings together the governors of North Sumatra, West Sumatra, South Sumatra, Riau, Riau Islands, Jambi, Bengkulu, Bangka Belitung, Lampung and Aceh.

If the proposal is approved, the provinces would be able to forge direct links with foreign funding bodies, such as the Islamic Development Bank, World Bank and Asian Development Bank, without having to go through the central government.

The proposal has been sent to President Susilo Bambang Yudhoyono.

Riau Islands administration official Tengku Mukhtaruddin said direct cooperation with foreign funding institutions would facilitate the ongoing development in Sumatra.

He said infrastructure projects on the island would be delayed if administrations had to wait for allocations from national and regional budgets.

"We have to realize the projects we have been planning in the very near future. We have decided to take funds not only from national and regional budgets, but also from foreign financial institutions," Mukhtaruddin told The Jakarta Post on Monday.

Mukhtaruddin served as the deputy of the Sumatra Governors Forum, which was led by Riau Islands Governor Ismeth Abdullah.

Home Minister Mardiyanto opened the forum, which was attended by Governor Rudolf Pardede of North Sumatra; Governor Gamawan Fauzi of West Sumatra; Governor Rusli Zainal of Riau; Governor Ismeth Abdullah of Riau Islands; Governor Syahrial Oesman of South Sumatra; Governor Zulkifli Nurdin of Jambi; Governor Agusrin M. Najamuddin of Bengkulu; Governor Eko Maulana Ali of Bangka Belitung; and Deputy Governor Muhammad Nazar of Aceh.

Mukhtaruddin said the proposal to work directly with foreign institutions was first raised during the first meeting of the forum in 2002, in Lagoi, Riau Islands.

He said the most pressing infrastructure projects for the island included Sumatra train links, toll roads, freeways and the construction of at least three harbors.

The recent forum also agreed to transform Riau Airlines into Sumatra Airlines. All of the governors agreed to provide the necessary funding to strengthen the airline's capital, so it could add to its fleet and routes.

"Lack of funds is the main obstacle for all provinces in Sumatra to realize their development plans. So far, the administrations have no direct links with financial institutions. Starting from now, we are asking the government to let us make direct links, so we can achieve our goals in a short time," Mukhtaruddin said.