World Report

Yogyakarta Investment in people is at the core of the sultanate’s development

nown historically as the Capital City of Revolution, Yogyakarta was the founding seat of Indonesian independence.
“Yogyakarta was formed as a result of our struggle against the Dutch. All my ancestors fought against the Dutch colonialists,” says Sultan Hamengku Buwono X, Governor of the province and hereditary Sultan.
Sometimes just known as Yogya, the special province is Indonesia’s only independent sultanate. It is located in the centre of the island of Java, with an 80-mile stretch of Indian Ocean coastline in the south.

The city of Yogyakarta with Mount Merapi, one of the most active volcanoes in the world

The Sultan says he finds no conflict in his dual role. Instead, he feels they are complementary. “My position as governor will only last for five years, but I will carry the obligations of a sultan until I die,” he says.
“Being governor actually gives me the opportunity to act realistically in the interests of my people. It provides the answer to the questions: How can I alleviate poverty among my people? How can I open up job opportunities? How can I improve their welfare? How can I provide a sense of security and a sense of justice to my people and help them look forward to their future?”

Sultan Hamengku Buwono X
Sultan and Governor of Yogyakarta Special Region
‘Being governor gives me the opportunity to act in the interest of my people’

Due to its small size – compared with most other Indonesian provinces – Yogya does not have any natural resources. It relies instead on the high quality of its education system, which benefits not only its own citizens but the whole country.

There are more than 80 higher education colleges, universities and academies in the province. Students from all over Indonesia and from abroad come to study here. “Our strategy is to utilise our human resources to develop the region further,” says the Governor.

In recent years, autonomy has given Yogyakarta the freedom to pursue a development strategy that is tailor-made to suit its needs. “There are three things to be done in this framework. The first is to prepare Yogya for globalisation. The second is to improve the welfare of the people and the third is to improve public services,” he adds.

The provincial government has made a special effort to bring in more foreign investors and to make sure that those who are already working in Yogya feel secure. “I believe that I have a responsibility to protect investors so that they are able to gain profits, if possible. When General Electric suffered financial losses in 1998-99 due to the economic conditions at the time I assisted them in their efforts to reduce costs,” says the Governor.

Further investments are planned in education, tourism and agribusiness as well as other industries. Thanks to its central location in Java, distribution costs from Yogya are relatively low compared with other regions.

Tourism development is also on the Governor’s agenda. “We have memoranda of understanding with a number of provinces. So I hope that the hotels and tour agencies will promote not only Yogyakarta but these other provinces as well. They need to promote Indonesia in its entirety. We are trying to make Yogyakarta function as a hub in the development of national tourism.”