Transportation Sector

Transportation Sector
Eastern IndonesIa Is a regIon consIstIng of 12 provInces: three provInces of KalImantan (East, West, Central KalImantan), four provInces of SulawesI (North, South, Central, Southwest SulawesI), three provInces of Nusa Tenggara (East, West Nusa Tenggara, East TImor1), Maluku and IrIan Jaya. ThIs region covers an area of approxImately 1.18 mIllIon km2 (60% of the entIre natIon) and has a populatIon of around 28 mIllIon people, or 16% of the overall populatIon (as of 1992 just before ImplementIng this project). FarmIng Is the key Industry for thIs regIon wIth roughly 70% of the entIre workIng populatIon Involved farmIng (the natIonal average Is approxImately 50%). The per capIta regIonal gross output Is between 40% and 60% of the natIonal average. The level of road and other transportatIon Infrastructure Is low and thIs Is the regIon of IndonesIa that has the strongest need for economIc development.
AgaInst thIs background, addressIng the Issues of poverty relIef measures, resource development and trade promotIon, especIally In Eastern IndonesIa where economIc development has lagged behInd the rest of the natIon, has been posItIoned as a natIonal Important polIcy In the 5th FIve-Year Plan (FY 1989/1990~1993/1994), In order to provIde developmental effects to all sectIons of IndonesIa and raIse the level of welfare for Its cItIzens. Further, a key Issue for thIs plan was to promote the development of transport Infrastructures, whIch serve as the foundatIon for economIc actIvItIes. Among the varIous types of transport Infrastructures, Importance has been placed on promotIng the transport of daIly necessItIes and trade, partIcularly by ImprovIng the coastal shIppIng that lInks between the Islands. For example; to provide Americans a 21st Century transportation system, the Administration proposes a five-year $5 billion high-speed rail State grant program. Building on the $8 billion down payment in the American recovery and reinvestment Act of 2009, the President’s proposal marks a new Federal commitment to give the traveling public a practical and environmentally sustainable alternative to flying or driving. Directed by the States, this investment will lead to the creation of several high-speed rail corridors across the country linking regional population centers.