Thu, 18 Mar 2010

TEMPO Interactive, Jakarta: The Economic Ministry has reaffirmed government's perspective in investment policy changes which will determine the stake of foreign investment in Indonesia especially in telecommunication sector. While the investment management agency warned the government over the consequences of foreign investment block.

Coordinating Minister for the Economy Hatta Radjasa said on Wednesday (17/3) the current referrence for revising the rules of telecommunication investments in the Presidential Regulation no 111 of 2007 on restricted sectors for foreign investments is still the Joint Ministerial Decree No.18 of 2009.

The ministerial decree bans foreign investments in telecommunication towers, and Hatta said there are abundant of “other financing sources for telecom towers in the country, such as from fund managers or elsewhere.”

Chairman of the Investment Coordinator Board Gita Wirjawan warned that complete ban for foreign financing in the sector will not only affect targets in telecom tower construction but in a more general term, the investment climate.

“Financing will be very limited. Because we will be very dependent on domestic investment which capacity have so far been proven insufficient to generate large scale improvement on development (of the sector).” Gita said.

He reminded that with Rp1 billion investment projection for one tower the sector needs about Rp150 200 trillion to meet the construstion target of 150 200 thousand towers in five or seven years. “As long as there is access whether it is 20, 30, 49, or 51 persen, that will be a positive signal,” Gita said.

The conflicting sides in the amendment plan are the Communication and Informatics Department who is against foreign investment and the Investment Coordinating Board who welcome foreign fund.