BLOOMBERG/China’s Wen Visit May Prove Boon for Indonesia Infrastructure
By Yoga Rusmana
April 14 (Bloomberg) -- A visit by Chinese Premier Wen Jiabao to Indonesia later this month may lead to increased investment in the infrastructure Southeast Asiaâ€™s biggest economy needs to sustain growth.
Wen and Indonesiaâ€™s President Susilo Bambang Yudhoyono will sign a bilateral infrastructure agreement that will be a framework for Chinese investment, Indonesiaâ€™s Trade Minister Mari Pangestu said.
â€śOn infrastructure, apart from whatâ€™s already there in terms of soft-loans-funded infrastructure projects, we would like to see much more public-private partnership-types of infrastructure investmentâ€ť from China, Pangestu told a lunch meeting with foreign journalist in Jakarta today.
Indonesia, which overtook Vietnam to as the regionâ€™s fastest growing economy after China and India in December, plans to double spending on roads, seaports and airports to $140 billion over the next five years to help boost annual growth to an average 6.6 percent.
Indonesiaâ€™s GDP grew 5.4 percent in the three months to Dec. 31, compared with 10.7 percent for China and Indiaâ€™s 6 percent. Vietnam, who economy expanded 4.5 percent in that period, posted a 5.8 percent gain in the first quarter.