ASEAN businessmen asked to join forces to build infrastructure

ASEAN businessmen asked to join forces to build infrastructure
facilities

JAKARTA (JP): Minister of Tourism, Post and Telecommunications
Joop Ave called on businessmen of the Association of Southeast
Asian Nations (ASEAN) yesterday to join forces in developing
infrastructure of the region.

Speaking at the closing of the two-day meeting of the ASEAN
Business Forum, Joop warned the businessmen not to miss "the
plane" in benefiting the great potentials of the infrastructure
business in the region.

"ASEAN countries will spend billions of dollars to develop
infrastructure facilities in the next five years," he said. He
added that the region's businessmen should, therefore, be able to
compete with companies from other countries in getting a piece of
the pie.

He acknowledged that the financing will become the major
constraint for local businessmen in undertaking infrastructure
projects.

"I think if the businessmen in the region are willing to work
together and combine their forces, the financial problem could be
solved," he said.

He hailed the forum's proposal for the establishment of a
commercial development bank to solve the financial problem. He
said that "if the organization is serious in preparing the bank,
I think international agencies will be able to financially
support the bank."

Bank

Aburizal Bakrie, the president of the forum grouping chief
business executives in ASEAN, proposed for the establishment of
an ASEAN Commercial Development Bank on the first day of the
meeting.

He said its organization is essential to solve the shortage of
investment funds in the region.

The meeting, attended by around 200 businessmen, discussed
business opportunities, global trade and infrastructure
development.

Stuart L. Dean, the president of the Singapore-based GE
Capital, told the meeting yesterday that the six ASEAN countries,
including Brunei, Indonesia, Malaysia, the Philippines, Thailand
and Singapore, are projected to spend at least US$200 billion in
infrastructure projects over the next five years.

According to Munawar Amarullah, a senior expert at the state-
owned electricity company PLN, Indonesia needs at least around
$24.4 billion over the next five years for the development of the
electricity facilities alone.

He said that at least $14.3 billion of the planned total
spending will be used to finance the construction of power
generation facilities. There will also be approximately $4
billion for transmission and $6.1 billion for distribution.

The president of the state-owned PT Telkom Indonesia (Telkom),
Setyanto P. Santoso, told the meeting that the country needs
billions of dollars to finance its telephone development projects
over the next five years.

He did not have the estimated costs for the projects but said
that Indonesia would install one million telephone lines a year
in the current five-year development plan (Repelita VI) period.

"This means that by the end of 1999, the telephone density
will be around 3.9 for each hundred people," he said.

He added that over the next five years, the telephone lines
will increase to eight million from the current three million.
(hen)