Archipelago Regions Draft Bill Establishes Special Fund to Support Business Climate

The Archipelago Regions Draft Bill will establish the Archipelago Special Fund (“DKK”) to address the high costs of development and the provision of public services in archipelago regions. This fund, sourced from the State Budget, will be allocated separately from the General Allocation Fund (“DAU”) and the Special Allocation Fund (“DAK”).

Mercy Chriesty Barends, Head of the Special Committee (“Pansus”) on the Archipelagic Regions Draft Bill, stated that the DKK is intended to strengthen basic infrastructure and inter-island connectivity, as well as improve the management of the distribution of goods and services. According to her, infrastructure limitations and distribution challenges have long been factors driving up the prices of goods and services in archipelagic regions.

Through this funding allocation, the development of strategic infrastructure—such as power grids and docks—is expected to improve connectivity while facilitating the distribution of goods and services. These improvements are also expected to create a more conducive investment climate and promote the development of marine-based economic potential.

“This DKK is sourced from the State Budget, separate from DAU and DAK,” said Mercy.

Currently, the government and parliament are still discussing the allocation mechanism and the amount of DKK for the regions. These discussions are being held to ensure that the designed funding scheme is targeted and equitable, taking into account the development needs of the archipelagic regions.