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)