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Nusantara ring project to drive economic growth: Airlangga

Jakarta Globe - January 25, 2024

Ichsan Amin, Jakarta – The so-called "Nusantara Ring" corridor project is expected to become the new engine of Indonesia's economic growth, according to senior minister Airlangga Hartarto.

The Nusantara Ring encompasses the northern Java, southern Sumatra, the southern Sulawesi, and East Kalimantan. Each of these regions plays a vital role in the economy.

Northern Java is home to some major industrial estates spread across Bekasi, Karawang, Purwakarta, Patimban, Tegal, Batang, Semarang, Kendal, Tuban, and Gresik. The existing toll roads in the region also help improve logistics. The southern parts of Sumatra and Sulawesi are witnessing fast economic growth. East Kalimantan is home to Indonesia's future capital Nusantara.

"If we connect all those economic corridors, we will be able to create the Nusantara Ring. The Java Sea, which is not deep and has smaller waves, helps connect the logistics in the Nusantara Ring," Airlangga said at the Investor Daily Roundtable in Cirebon on Wednesday evening.

The Nusantara Ring will play a strategic role in building Indonesia's food security as the government plans to continue with the food estate program in Central Kalimantan. According to Airlangga, the food estate already produces crops, and plans are underway to improve irrigation and implement agricultural intensification. There are also plans to implement modern farming.

"There are gaps that we have to address to make Nusantara ring the next driver of economic growth. This region can also be a hub to spur eastern Indonesia's growth," Airlangga said.

Making sure that all these economic corridors are pivotal to creating this Nusantara Ring.

Airlangga said the Patimban Port in Subang would complement the existing ports in Tanjung Priok, Tanjung Mas, and Tanjung Perak. The Patimban Port is also expected to cut logistic costs by 10 percent. West Java, Central Java, and East Java are now connected via toll roads. The Java Sea, which links Kalimantan and Java. This makes the immersed tunnel a strategic project to build this Nusantara Ring connectivity.

"Indonesia's economy will not only be Java-centric in the future. The economies of other regions will also grow," Airlangga said.

Source: https://jakartaglobe.id/business/nusantara-ring-project-to-drive-economic-growth-airlangg