Danareksa to raise Rp 3t for infrastructure<\/p>\n
Rendi A. Witular, The Jakarta Post\/Jakarta<\/p>\n
State-owned investment and securities firm PT Danareksa plans to
\nraise at least Rp 3 trillion (US$297.32 million) next year from
\nthe government and public funds to help infrastructure investors
\nacquire land for their projects.<\/p>\n
Danareksa president director Lin Che Wei told The Jakarta Post
\nrecently the firms would launch later this year an investment
\ninstrument called a \"revolving land fund\", into which the
\ngovernment and the public could invest money with the expectation
\nof competitive proceeds.<\/p>\n
\"The revolving land fund will be used to acquire land for
\ninfrastructure projects. The government will invest some Rp 600
\nbillion this year into the fund with the remaining Rp 2.4
\ntrillion to be raised from public investors,\" he said.<\/p>\n
He added that the pooled fund would be managed more or less in
\nthe form of a trust fund, rather than a mutual fund.<\/p>\n
Land acquisition is among formidable problems discouraging
\ninvestors from developing public and business infrastructure amid
\nthe country's dire need for fresh investment in the sector to
\nhelp drive higher economic growth.<\/p>\n
Many of the country's infrastructure projects have run aground
\ndue to uncertainty in land acquisition as a result of an intense
\nopposition from landowners and a lack of capital to purchase the
\nland.<\/p>\n
Lin said with the revolving land fund, infrastructure
\ninvestors could borrow money to purchase land for their projects,
\nwhich they could pay back in monthly or annual installments at a
\ncertain level of interest rate.<\/p>\n
The country will need some $140 million over the next five
\nyears to develop sufficient infrastructure for the public and
\nbusinesses, however the government can only finance up to 20
\npercent of funds and the remainder must come from the private
\nsector.<\/p>\n
In January, the government, assisted by several business lobby
\ngroups, held the country's first infrastructure summit aimed at
\nattracting investors to develop 91 projects worth some $21
\nbillion for this year alone.<\/p>\n
However, due to a failure in improving the country's
\ninvestment climate and the absence of several incentives as
\npromised during the summit, the government had only managed to
\ndrum up three winning bidders for the projects as of October.<\/p>\n
The government will hold the second infrastructure summit here
\nin February.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/danareksa-to-raise-rp-3t-for-infrastructure-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}