IRF fails to attract investors<\/p>\n
Adianto P. Simamora, The Jakarta Post, Jakarta<\/p>\n
The government's plan to establish the so-named Indonesian
\nRecovery Fund (IRF) to help finance the revitalization of the
\ncountry's industries remains uncertain as foreign investors have
\nstill been reluctant to invest in the fund.<\/p>\n
\"Frankly speaking, the plan to establish the fund is not
\nprogressing as well as I had expected. Foreign investors have yet
\nto regain their confidence (in Indonesia),\" Minister of Industry
\nand Trade Rini M. Soewandi told reporters on Monday after
\npresiding over the start of trading at the Jakarta Stock
\nExchange.<\/p>\n
Factors that discouraged investors included the stalemate in
\nthe country's privatization program, she said.<\/p>\n
\"Many of them (investors) are still waiting for the government
\nto form a clear policy on the privatization program,\" Rini said.<\/p>\n
The investors are also awaiting the outcome of the sale of
\nBank Central Asia and are watching to see if the sale process
\nwill be carried out transparently, she said.<\/p>\n
The bidding for BCA is now in progress, with British bank
\nStandard Chartered Bank and American investment firm Farallon
\ncompeting with each other.<\/p>\n
The government plans to raise around Rp 6.5 trillion (about
\nUS$650 million) in privatization proceeds this year.<\/p>\n
Last year, the government was unable to sell its stake in some
\nstate-owned companies, including cement producer PT Semen Gresik,
\ndue to strong opposition from various parties, including
\npoliticians and employees.<\/p>\n
Last year, Rini announced plans to set up IRF to help the
\nrecovery of the country's industrial sector, which mostly remains
\nin the doldrums due to indebtedness and economic crisis.<\/p>\n
She mentioned again the funds in the ministry's blueprint
\nprogram for the revitalization of the country's industries which
\nhad yet to be approved by the Cabinet.<\/p>\n
In the revitalization program, Rini has placed priority on
\nfour industries -- textiles, electronics, footwear and pulp and
\npaper -- given their labor-intensive nature.<\/p>\n
The growth of the industries could lead to the creation of
\nmany jobs, while their collapse could lead to the laying off of
\nthousands of workers, she said.<\/p>\n
In the revitalization program, Rini suggested the
\nestablishment of IRF, which comprises IRF Asset Management and
\nIRF Venture Capital.<\/p>\n
IRF Asset Management is aimed to quickly restructure the debts
\nof the four sectors.<\/p>\n
Their debts should be transferred from the Indonesian Bank
\nRestructuring Agency (IBRA) to IRF Asset Management, which will
\nrestructure the debts on commercial terms.<\/p>\n
\"Canadian firm Manulife has expressed serious interest in
\nsupporting the program,\" she said.<\/p>\n
Meanwhile, IRF Venture Capital is aimed at providing capital
\nfor small and medium enterprises, which are active in supporting
\nbig industries.<\/p>\n
Rini said earlier that the initial funding was expected to
\nreach $200 million, of which the government might have to
\ncontribute $10 million.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/irf-fails-to-attract-investors-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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