Makassar – The Gateway to Eastern Indonesia

South Sulawesi’s capital, Makassar, has enjoyed spectacular growth throughout the past few years, supporting the city’s claim to being the main gateway to the eastern part of the country.The presence of two major facilities, the Hasanuddin International Airport and the integrated Soekarno-Hatta Port, support plans to boost the city’s economy. The construction of a major fishing port and a traditional port in the Paotere area are also planned for the near future.

Aware of the city’s strategic location as a transit point to eastern Indonesia, the Makassar municipality has endeavored to provide various facilities to attract people not only to stopover in the city, but also to invest in sectors such as industry, property and tourism.

Makassar Mayor Ilham Arif Sirasjuddin said the city did not have enough natural resources to rely on due to its position as a provincial capital and as a hub for vital activities such as administration and education.

“As a provincial capital, Makassar has grown into a service center. That is why we have to provide complete infrastructure to investors and business people so as they choose to invest here. We hope people from the eastern part of Indonesia will not go to Java to shop, but rather come to Makassar for this purpose,” Ilham said.

Ilham and Vice Mayor Andi Herry Iskandar are making a concerted effort to attract investors to the city by providing a number of privileges, such as facilitating land procurement, license issuance and reducing taxes.

Their efforts seem to be paying off. The construction sector in the 175-square kilometer city has rapidly grown, as evidenced by the increasing number of shopping centers, business districts, hotels and shop-houses in the city. The municipality has also carried out improvements in the transportation sector.

In 2006 economic growth in the city reached 8.6 percent, compared to 7.8 percent the previous year.

An economist at Makassar’s Hasanuddin University, Hamid Paddu, said the municipality’s accomplishments in boosting economic growth were spectacular.

“The physical development of Makassar is quite remarkable. However, as a gateway to eastern Indonesia, the developments should have been planned as part of the process of becoming a metropolitan city,” Hamid said.

He said that urban development in the city was not in line with the city’s spatial plan. Development in Makassar is virtually unrestricted for residential areas, schools, offices, business centers, hotels and public facilities.

He also said that progressive development in the city had virtually erased the characteristics of Makassar and the South Sulawesi people in the city.

He said almost none of the city’s infrastructure was beneficial to boosting the market value of its main natural resources such as cacao and corn and fishery and forest products such as rattan.
Hamid said he supported modern development, but not at the expense of the city’s identity, which was once known overseas as one of the biggest trading centers in Indonesia.

Ilham said he was quite involved in the process of planning future development in Makassar, a process which was already well underway when he commenced his position as mayor three years ago.

He said he is currently establishing ways to better organize the city, which is the focal point of urbanization in South Sulawesi.

“It is certainly no easy task, but I am determined to develop Makassar, not only physically, but also to improve people’s living standards,” Ilham said.

A sharp increase in the city’s population in recent years has led the municipality to plan improvements in the areas of transportation, public services and human settlement.

In the area of transportation, the municipality is planning to introduce a busway system and also intends to take advantage of Makassar Strait and rivers flowing through the city for its water transportation network.

The programs to be carried out by the administration are not only restricted to economic infrastructure, but will also provide peace and security as well as improve people’s welfare. The population of the city has reached 1.2 million, of which 250,000 people are poor.

However, education and health still top the administration’s priority list. A sum of Rp 100 billion (approximately US$11.1 million) has been set aside for education and health this year.

To achieve its objectives, the municipality has made efforts such as providing free medical care at community health centers which started this year.

In the area of education, the municipality started providing free education to financially disadvantaged students at the elementary and junior high school levels this year. During its initial stages, the program will give priority to school-aged children living on islands due to the higher number of school dropouts in such places.

The administration also plans to transform slum areas in the city, starting with the construction of two flat complexes in the Mariso district with a capacity of 266 families. The administration also intends to provide house renovation assistance for poor residents who own land. The former slum areas will be converted into city parks and catchment areas to overcome annual floods.

However, Ilham said efforts to turn Makassar into a city for the future have encountered obstacles because on several occasions, the public have rejected government proposals.

“We are facing several serious challenges, such as limited funds and public protest, despite the fact that everything we are doing is for the sake of the people,” he said.

Andi Hajramurni