REPUBLIKA.CO.ID, MANADO -- Government will issue special tax incentives for specific investment in eastern Indonesia. Deputy of Finance Minister, Bambang Brodjonegoro said that the incentives would come out through a government regulation (PP). All stages have been completed , just waiting for the administrative process in central government.

"For example, sago plantation and processing industry will get this incentives. This industry only exists in one or two provinces in Indonesia," Brodjonegoro said on Monday.

Former Finance Ministry's fiscal agency head hopes that this incentive will increase investment in eastern Indonesia, which is not optimal during this time due to out of lack of infrastructure facilities. In fact, eastern Indonesia has a very wide area.

"We have large population, but there is unemployment issue in some areas. We have to balance the east and west," Brodjonegoro added.

Agronomy expert from Bogor Agricultural University, Prof Bintoro said that Indonesia was the world's largest sago producer. It becomes 60 percent of majority food in Papua and West Papua. Sago land in the two areas reaches 5.2 million hectares, but 2.1 million hectares of land has experienced land-use changes.

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