Second Symposium(Presentation of Tanjung Perak(2)Address of EAST JAVA 1)

ADDRESS OF THE GOVERNOR OF EAST JAVA
TO INAP SYMPOSIUM

Thursday, 2 December 1999 Assalamu'alaikum Warohmatullahi Wabarokatuh
HON. Daijiro Hashimoto
The Governor, Kochi Prefectural Government, JAPAN

Good afternoon, Iadies and gentlemen, and warm greetings to this INAP Symposium. Let us pray together to God for his mercy and his guidance.

I am here today representing the Provincial Government of East Java, and especially the peopie of Surabaya. On their behalf, I would like to say 'welcome' to the participants of this symposium and I would also like to express my gratitude for the trust given to East Java, especially to PT PELINDO 111, as the host of this second INAP Symposium in 1999.

Honoured participants,

Geographically, Indonesia is strategically placed for world economic traffic since it lies between 2 oceans (the Pacific and Indian Oceans) and between 2 continents (Australia and Asia).

In addition to this, the province of East Java occupies a position of prime importance nationally, as a developing centre of trade and industry such as cement, wood, shipping, electronics, and agro-industry. East Java also has abundant resources in farming, plantations, forestry, mining, and the tourism sector, with the resu[t that it forms a center of development for the whole East indonesia region.

The national sea transportation system puts Tanjung Perak port of Surabaya, as one of the four main gateways to Indonesia, besides Tanjung Priok, Belawan, and Ujung Pandang. Because of this, efforts to increase the role of Tanjung Perak port are focused on improvements in the efficiency and effectiveness of the whole maritime transportation service in order to support a smooth flow of goods and services to as wide an area as possible, and particularly to support trade between islands in the country and to support efficient export and import services. It is important to note that, in order to improve working methods at Tanjung Perak port, cooperation agreements have been made with Fremantle port (West Australia) and Sakae Sen Bohu port in Osaka, Japan.

Tanjung Perak functions as the gateway to the East Indonesia region, as well as being the distributor and supplier to inland areas with the support of buffer harbors such as Gresik, Banyuwangi (Tanjung Wangi), Probolinggo, Pasuruan, Situbondo (Panarukan Harbour) and Sumenep, through the port of Kalianget.

As you know, the economic crisis broke out in 1998, causing a contraction in economic growth of - 9.55% for 1998. However, based on projections made by the Central Bureau of Statistics, the economy is likeiy to grow in the first semester of 1999 by 1%. This is particularly good news for East Java, especially for the industry and trade sectors.

The government is making consistent efforts to stimulate the economic development and growih of East Java by assisting market penetration and exploiting opportunities for the investor. The investment development in East Java until July i999, recorded 44 projects for PMA companies and institutions (Foreign Investor) with a value of US $ 161,362,000 and 11 PMDN (Domestic Investor) projects with a value of Rp. 766,695,000,000. Oil and natural gas exports from East Java in 1999 increased by 12.84% compared to 1997, i.e. from US $ 4.31 billion to US $ 4.86 billion or 13.05% of national export value.

The value of exports also increased by 52.77%, that is from 2,901,528 tons to 4,432,586 tons. This increasing export trend has been led by the gradual recovery of the core economic sectors. By the end of July 1999 the export volume had reached 2,010,892 tons with a total value of US $ 1,919,573,466.

Commodities exported from East Java in 1998 rose by 3.83% (from 1,307 items to 1,357 items). From the 20 main commodities, 10 items commodity showed a substantial increase - these included goods made of gold, steel products, flavouring, paper and paper products, cloves, sandals, Iysine and ester, rubber, rattan products, and frozen shrimps.

East Java's exports reached 135 countries in 1998, compared to 133 countries for 1997. Of the 10 main export countries, 6 countries showed an increase, i.e. Singapore, Hongkong, Malaysia, Taiwan, the United States, and Australia.

The growih of East Java's export value is to a large degree due to the increase in the number of exporters, who totalled 963 in 1997, while in 1998 altcgether 1009 exporters played their part. The value of imports into East Java from January to November 1998 was US$ 2,675,401,000. Compared to the same months in 1997 decreased by 28.09% or US$ 3,720,633,000. The greatest reductions have been in fuel, metals, textiles and clothing, machinery and in the aviation sector.

Honoured Symposium participants,

The positive growih in the economy of East Java noted by the increase in export values and decline of import value as I mentioned above, is also reflected in the volume of business through the ports of East Java, where export flows increased by 162.15%, from 679 units in 1997 to 1,780 units in 1998. In the first semester in 1999 419 units were recorded. Meanwhile, import flows decreased from 6,053 units in 1997 to 4,726 units in i998 or a decrease of 27.33% - in the first semester of 1999 we have recorded 2,299 units of imports.

The improvement of the economic situation in East Java nowadays has reached a point where we can genuinely talk of economic recovery, thus in this symposium I hope:

There will be an increase in the level and effectiveness of cooperation among the ports and port authorities of the member countries of INAP.

There will be an increase in collaboration between the individual ports and harbours of INAP members, which in its turn will help to develop the participation of INAP members in the world of trade and commerce through exports and imports, especially to support the growing economies of the developing countries.

There will be consolidation in working methods among the exporters from developing countries which will enable them to meet the demands of importers from the advanced countries.

We also need to look at ways of streamlining and reducing shipping operational costs, by strengthening communications within the port and harbour network, so that for example export-import transportation can be arranged directly from the first harbour to the harbour destination without transit (Direct Ship Call).
Thus, these are some of the things that I should like to present and which I hope can be used to provide input for further discuss in this Second INAP Symposium.

Thank you very much.

Wassalamu'alaiku m Warohmatul lahi Wabarokatuh


Surabaya,December 2, 1999
GOVERNOR OF EAST JAVA
H. IMAM OETOMO. S