ASEAN businessmen suggest establishment of regional development
\nbank<\/p>\n
JAKARTA (JP): The ASEAN Business Forum, grouping business
\nexecutives of the Association of Southeast Asian Nations (ASEAN)
\nhas proposed the establishment of a regional development bank.<\/p>\n
Aburizal Bakrie, the chairman of the forum, said here
\nyesterday that the establishment of an ASEAN development bank is
\nessential because most of ASEAN's six member countries lack funds
\nto finance their development projects while available world
\ninvestment funds continue to decline.<\/p>\n
Speaking at the forum's second meeting, Aburizal said most
\nASEAN countries -- including Brunei, Indonesia, Malaysia,
\nThailand, the Philippines and Singapore -- are now engaged in
\nmassive programs to develop their infrastructure facilities,
\nespecially those dealing with power supplies and
\ntelecommunication services.<\/p>\n
The two-day meeting, participated in by the organization's 200
\nmembers, is discussing investment opportunities, global trade and
\ninfrastructure development in the region.<\/p>\n
Aburizal, also the chairman of the Indonesian Chamber of
\nCommerce and Industry (Kadin) and chairman of the Bakrie Group,
\nsaid each ASEAN country needs hundreds of billions of dollars to
\ndevelop a sound and efficient infrastructure capable of matching
\nits rapid economic growth.<\/p>\n
Way out<\/p>\n
\"The establishment of the ASEAN Commercial Development Bank
\ncould, therefore, become a good way out in dealing with financial
\nconstraints, as existing financial instruments will not likely be
\nable to cope with the sharp increase in the demand for
\ndevelopment funds,\" he said.<\/p>\n
ASEAN countries cannot expect much from existing financial
\nsources such as loans from commercial banks; and venture capital
\nis not only expensive, but also insufficient for financing
\nmassive development programs, he explained.<\/p>\n
\"The government of each country will have to finance the bulk
\nof these projects, but as they have numerous other priorities,
\nthey will not drain their national reserves developing the
\ninfrastructure alone,\" Aburizal said.<\/p>\n
The World Bank, the Asian Development Bank and other
\ninternational financial agencies are obvious sources of
\nfinancing, but given the competing demand, one cannot expect too
\nmuch support for any one particular country regardless of its
\nneeds, he said.<\/p>\n
\"In this context, I wonder whether we should not explore the
\npossibility of establishing an ASEAN Commercial Development Bank
\nas a financial option,\" he said.<\/p>\n
Aburizal noted that Brunei and Singapore, the richest nations
\nin ASEAN, could be invited to take a leading role in the planned
\ndevelopment bank.<\/p>\n
\"Infrastructure development is imperative for ASEAN to attract
\nforeign investors,\" he said. \"Many foreign investors are now
\nturning to China and Indochinese countries because ASEAN is
\nconsidered marginally less attractive.\"(hen)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/asean-businessmen-suggest-establishment-of-regional-development-1447899208",
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