Bappenas Urges Local Governments To Focus On Three Business Sectors

Jakarta (Antara Bali) - The National Development Planning Agency (Bappenas) has urged the local governments to prioritize three business sectors, such as agriculture, manufacture, and trade, in a bid to develop the local economy.

The three sectors have contributed significantly to the country's economy and have helped to create numerous job opportunities.

"When it comes to the strategy for developing the local economy, we need to prioritize these three (sectors) since they have a significant contribution to the gross domestic product and have created many jobs," Bappenas Head Bambang Brodjonegoro stated here, Sunday.

Brodjonegoro pointed to a slump in economic growth in some regions, such as Sumatra and Kalimantan, which increasingly relied on natural resources. Despite some improvements also being recorded, it has yet to correspond to the regions' initial potentials.

Meanwhile, the economies in Sulawesi and Nusa Tenggara, by and large, grew despite a slowdown in the second quarter of 2016. Although growth in Java was relatively stable, fluctuations in the economy were observed in Maluku and Papua, as they relied on the export of mining products.

"Sulawesi should maintain its economic growth since it has promising potential in the areas of agriculture, plantation, and fishery. Nusa Tenggara holds potential in service and tourism, while Java's strengths lie in the areas of manufacturing, service, and trade. Sumatra and Kalimantan are still striving to rise after the fall in commodity prices, mainly coal and CPO," Brodjonegoro explained.

In general, Indonesia's economic stability is well maintained. The government will be endeavoring to maintain the inflation rate below 4 percent for 2017 and the following year.

The central government should be meticulous in mapping out regions that can trigger a high inflation rate, so it could be handled immediately.

"We cannot give the same treatment to every region. The district or city that can potentially create the highest inflation rate should be managed immediately by probing the cause and making necessary efforts to curb its inflation," Brodjonegoro added.  (WDY)