Marine Business Management Transferred To Private Ownership
Tuesday, 02 May, 2006 | 14:23 WIB

Tempo Interactive, Jakarta: The management of the marine sector will be fully transferred to private parties. The government's role has been so dominant that maritime industrial growth was slow.

Marine Affairs and Fisheries Minister, Freddy Numberi, said the transfer to private ownership will be in the form of business renovation. To develop the privatization of the marine business, the government will invite foreign investors to provide the funds. “Until now, marine management has been obstructed by bureaucracy. We will transfer it to private parties soon.” he said yesterday.

Freddy admitted there are many regional regulations that became obstructions for investment activity. As a result, several foreign investors were slow in realizing their investment and they were only noted in the files of the Investment Coordinating Board.

Starting 2007, said Freddy, he will intensify the coordination system in the central and provincial governments, besides expediting investment and coordination for budget efficiency. Next year, the allocated fund for the Marine Affairs and Fisheries Department will be Rp3.02 trillion. Eighty percent will be allocated for regions.

Freddy said in the next five years, marine sector development will face serious challenges, some of which are conflict among fishing groups from different areas, illegal fishing, and the Indonesian outer islands' management. “The other problem is the rise of production costs due to the fuel oil price increase,” he said.

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