An economic survey of northern Sulawesi: Turning weaknesses into strengths under regional autonomy

Abstract

The separation of North Sulawesi and Gorontalo into two provinces in 2001 complicated the issue of making regional autonomy work for northern Sulawesi, a region far removed from Indonesia's centre of power. Although the region had come through the economic crisis relatively well, the over-reliance on coconuts and the lack of a focus for dynamic development remained a challenge. Tourism, mining and services were the most dynamic sectors but, for different reasons, none of these sectors can be relied on for steady long-term growth. With the selection of the corridor from Manado to Bitung as one of Indonesia's 13 integrated economic development zones (Kapet), and given the new North Sulawesi province's potential role as a 'gateway' to Northeast Asia, the longer-term prospects for this province are brighter than those of Gorontalo. Nevertheless, capitalising on North Sulawesi's potential remains a formidable challenge.