Blitar Best in Local Economic Governance

Blitar, East Java was awarded the overall best for Local Economic Governance by the Regional Autonomy Watch Committee on Tuesday, making the small city with very little resources conducive for business activities and potential investments.

 

“The most important things for business players are the availability and management of infrastructure, legal certainty of business licensing and cooperation with local officials, this is what makes Blitar the best in economic governance” Agung Pambudhi, Executive Director of Regional Autonomy Watch Committee told the Jakarta Globe on Wednesday.     

 

Ironically, the city’s economic power is still low compare to other cities in Indonesia. According to 2007 East Java Statistical Bureau’s report the city’s income was less than Rp.280billion, with 74 per cent spent on operational expenditures, leaving little room for driving the local economy.  

 

However, the report also suggested that the city’s 2007 economic growth raised from 5.75 per cent in 2006 to 6.12 per cent last year. The city’s gross income also grew 15.65 per cent to Rp.6, 804,726 in 2007. The growth rates are higher than most Indonesian cities.  

 

According to the city’s report, domestic and foreign investments grew by 200 per cent to more than Rp.31billion last year from Rp.12billion in 2006.

 

There are now 212 companies operating in Blitar according to East Java statistical report, absorbing 5,819 workers. These companies are mainly trade (50%) and industry (26%).   

 

“A city’s economy has a lot of factors at play, including natural and human resources, however good economic governance would indeed stimulate an economic growth” Pambudhi explained. 

 

He added the city was successful because it provides good systems for business licensing, land certification and management of its infrastructure.

 

According to the city’s report, it only takes a maximum of eight days for a complaint on the city’s infrastructures to be processed and dealt with. It also has innovative economic programs that assist the business process such as procurement, certification and licensing which simplifies the bureaucracy.

 

“The city adopted the ‘one stop service’ system for business licensing, out of the 164 cities and regencies that adopted the system Blitar is the very best” said Pambudhi.

 

Minister of Finance, Sri Mulyani pledged a full support to Regional Autonomy Watch Committee Award winners on Tuesday at the awarding ceremony. She said that the support could be in the form of a fiscal incentive, which requires parliament’s approval.