Indonesia has benefited greatly from the "one belt" strategy.
Sina Finance and Economics Consultation is hosted by the International Cooperation Center of the National Development and Reform Commission. The "Annual Conference on China's Economic and International Cooperation and the New Bashan Round Conference 2016" was held in Beijing from November 26 to 27.
The Indonesian Ministry of Transport and the Ministry of the Internal Affairs attended . He stated that the speed of China's economic development is second to none in the world, and Indonesia has benefited from the “Belt and Road” strategy in infrastructure and other aspects. We have connected a lot of islands, with a total of 60,000 kilometers. Most of these islands are connected to each other's neighboring islands, so we have greatly benefited from the “Belt and Road” strategy.
Following is the speech record:
Dear Director Cao Wenlian, distinguished guests, it is a great pleasure to attend the 21st Century Maritime Silk Road Policy Seminar. First of all, I would like to thank the National Development and Reform Commission for hosting this meeting. We know that the speed of China's economic development is second to none in the world. Indonesia has benefited from the “Belt and Road” strategy in infrastructure and other aspects. We have connected a lot of islands, with a total of 60,000 kilometers. Most of these islands are connected to each other's neighboring islands, so we have greatly benefited from the “Belt and Road” strategy.
Interconnections, such as some islands in East Indonesia (Maluku), all of which have brought great improvements to our economy. Not only the development of the domestic economy, but also the infrastructure of Indonesia, once subject to our neglect of infrastructure. Many ports originally faced many limitations when they developed. For example, according to an international bank report, if we want to ship a container in the area ofBaden, its cost thee times more than Singapore, so we need to change this situation to enhance our trade level.
Our development includes building better ports, better cargo, ships and so on. The interconnection between the islands allows us to make more efficient use of these resources at home. At the same time, the interconnection within the peninsula can also take advantage of Indonesia's advantages to develop our maritime economic corridor and enhance trade and trade. Although Indonesia's idea is to develop itself into an axis of the global ocean, now Indonesia hopes to establish three Peninsular economic zones, such as the north, the central and the south, to link Indonesia as a whole.
The interconnection of oceans and seas is a very important project, which is very important for us in Indonesia. This was put forward in the discussion of APEC Intersection Working Group. We want to build such a system of ocean highway and build such a circular freight transport system to support our ASEAN interconnection. These are the information from the Ministry of Communications.
Indonesia's international position, 90% of international trade passes through Indonesia, through the Indian Ocean, such as the corridor between Australia and the Indian Ocean. This is a very important geographical location of our country in international trade. 60% of our country's trade is with Asia. This is a map of Indonesia. You can see that it is 5,000 kilometers from west to east and 1,500 kilometers from south to north. This is our diverse transportation system. We want to establish a domestic logistics center. We also have some guiding principles for the logistics construction in our country.We will establish a marine transportation system in the ocean and then serve different fields to enhance safety. At the same time, we also want to develop a green and environmentally friendly marine transportation system.
This is the case of the Indonesian population (figure), 57% of which is in the area of Java, but this area is not well connected to other islands, mainly due to some limitations of ocean transportation. This is some of the challenges and problems we face. For example, domestic shipyards and other developments are not very good. In 2014, 50% of GDP was in the region of Java, and this number has increased. What we are seeing is that there is a problem here. Our lack of marine infrastructure has caused the maritime transport in Papua and other parts of Indonesia to be blocked. This is the distribution of 33 major ports in Indonesia (pictured), as well as 217 receiving ports and 991 small ports. This is the distribution of our ports (figure), the distribution of ports for exports and imports.
In the next step, I will speak on behalf of the Director of the Indonesian Ministry of Internal Affairs.
This is part of my internal affairs department. Indonesia has 17,000 islands, which are 5,000 kilometers in length and 1,500 kilometers wide. This geographical situation gives us opportunities and challenges, which are about self-governance in Indonesia. The challenge is that we must allocate our resources in education, health care, welfare, security, etc., so that it can better benefit the whole people. This picture shows the distribution of resources in the coastal areas. Our problem is mainly because we have some old cities. Moreover, we always regard the ocean as a limitation and an obstacle. It is an obstacle to our economic development, an obstacle to our social development, and other obstacle such as cultural barriers. We always believe that the ocean will bring about inequality in development and prosperity.
In the past, Indonesia did have a phenomenon of uneven development. Some developments did not benefit some areas of Indonesia, mainly in remote areas. The inequality of development is not what the government wants to see because we want to maintain a unified country. Therefore, the government has taken nine development initiatives, and we call this "nine new visions." We came up with the idea that ocean development, we hope to build a faster, more efficient system based on ocean transportation, and also supported by the government of the People's Republic of China.
Our maritime transport development system can turn the stereotype that we are obstructing the ocean into a new concept of connecting the ocean. So we hope that everyone can feel the presence of our country, and that everyone can feel that we are a maritime country and that the ocean is a natural resource for us. This is one of our islands, a peninsula (PPT). If we do not use the ocean as a transportation channel, it is difficult for us to access this area.
Our President has proposed the strategy of the maritime transport system, which is mainly to develop Indonesia from a situation of isolation of islands into an interconnected and to a very good region. At the same time, all regions and villages can get the benefit. And the development barriers with our different regions will make our country to develop better. Some local governments do not have enough funds to carry out infrastructure development, so they cannot catch up with the development level of some developed regions. This is a regional income comparison. Jakarta's income is very high, while other regions are very low, which is unfair. So the government has a policy that changes this situation.
We see poverty, and if local residents live in poverty, they will not be able to get an education. If education is low, there will be no skills and the income level will be low. This is a vicious circle and it will cycle. This cycle must be broken, and our development of infrastructure, including offshore infrastructure, can really change people's quality of life and enhance the well-being of community residents. The president has a presidential decree and national plans to change such income inequality. Our President supports public-private partnerships, or PPP for short, to promote the development of infrastructure and to develop throughout Indonesia to ensure quality, efficiency and timeliness. We must create a good investment environment, provide some incentives, and promote the participation of private enterprises in the construction of infrastructure facilities. This is an opportunity for airport construction. In addition to the seaports being connected, we also need airports.
This is the distribution area of our special economic zones. Everyone sees that there is a special economic zone in each region, and they all have their own key industries. Let's look at some examples. These examples are examples of public-private partnerships. For example, we have water projects and highway projects. Infrastructure development can increase people's productivity and achieve economic independence. Recently, we have continuously improved the construction of roads. We have developed roads, transportation, and ports. We are also developing passenger and cargo ports, as well as other shipyard services. The infrastructure at sea can reduce the gap between the rich and the poor. We can link the ports of offshore infrastructure. The government can also have very good development of ferries and boats, and can link the sea, land and air transportation. The development of infrastructure can enhance the vitality of the economy and enhance the social welfare of the residents. It will also benefit the country.
Thank you for your attention, I wish you all the best.