Government to woo potential infrastructure investors
Government to woo potential infrastructure investors
Dadan Wijaksana, The Jakarta Post, Jakarta
The government plans to invite at least 500 potential local and
foreign investors to the Infrastructure Summit in January, where
it will unveil a framework for planned infrastructure projects
over the next five years.
Trade counsels and representatives from neighboring countries,
local and global commercial banks, trade chambers and business
associations, and national and multinational firms will be among
those invited to the summit, State Minister for National
Development Planning Sri Mulyani Indrawati said on Wednesday.
Also to receive invitations will be research centers, think
thanks, non-governmental organizations and other interest groups.
At a press briefing prior to a seminar on infrastructure, Sri
Mulyani said the list of invites would likely grow in view of the
amount of financing necessary for the massive infrastructure
projects the government has planned over the next five years.
"The funding required over the next five years for the sector
will be between Rp 700 trillion (some US$77 billion) and Rp 1,030
trillion, with most of this money having to come from the private
sector," said Sri Mulyani.
The government has said it requires financing to build roads,
railways, ports, airports, power plants, telecommunication
facilities, natural gas transmission and distribution facilities,
water plants, irrigation facilities, housing and other crucial
infrastructure.
The figures mentioned by Sri Mulyani, however, are much higher
than the Rp 600 trillion mentioned earlier by President Susilo
Bambang Yudhoyono.
The National Development Planning Board (Bappenas), chaired by
Sri Mulyani, has been ordered to draw up a road map for
investment in the infrastructure sector for presentation at the
Infrastructure Summit on Jan. 17 and Jan. 18.
Improving infrastructure is deemed vital by the current
administration to achieve the targeted 6.5 percent average annual
economic growth.
Not only will improved infrastructure help attract investment
to the country, the development of infrastructure projects will
create significant numbers of job -- an important benefit for
Indonesia, where about 40 million people are unemployed.
Sri Mulyani said of the total financing needed for the planned
infrastructure projects, the state budget could provide about Rp
200 trillion, with about Rp 200 trillion more coming from the
domestic banking sector.
The remaining money will have to come from the private sector,
both domestic and international investors, including global
financial institutions such as the World Bank and the Asian
Development Bank, Sri Mulyani said.
Funding needs for road network in 2005-2009
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Program Funds
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Road maintenance Rp 58.1 trillion
New road development Rp 100.0 trillion
Toll roads Rp 90.2 trillion
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Total Rp 248.3 trillion
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Source: Bappenas