RI faces tough fight in wooing investment
RI faces tough fight in wooing investment
JAKARTA (JP): Indonesia is facing tough competition in
attracting foreign investment for infrastructure projects,
Rahardi Ramelan, a deputy chairman of the National Development
Planning Board, said yesterday.
"Indonesia, during the Sixth Five Year Development Plan
period, will need about US$50 billion for 330 government projects
in infrastructure," Rahardi said during a three-day dialog on
cooperation among Asia Pacific Economic Cooperation (APEC)
members in infrastructure.
"This tremendous need cannot be provided by the government
alone," he said.
The infrastructure projects consist of toll roads, ports,
airports, telecommunications and electricity.
A recent study by the World Bank indicates that the East Asian
region needs about $1.2 trillion to $1.5 trillion in investment
for infrastructure development through the end of the century.
"China is a great challenge for our country because it will
take half of the international funds for infrastructure
projects," Rahardi said.
Bintoro Tjokroamidjojo, President Soeharto's special assistant
on APEC affairs, agreed with Rahardi, saying that Indonesia needs
private investors, both foreign and domestic, in infrastructure
projects.
Rahardi said that to attract private investors to Indonesia,
"we have to make them sure that our investment climate is good
and our infrastructure projects are profitable."
However, Bintoro suggested that the government continue its
involvement in setting fees for the utilization of infrastructure
because it affects many people.
The discussion, which was opened yesterday by Minister of
Public Works Radinal Moochtar, attracted 150 government officials
and business executives from APEC member countries.
The results of the dialog, which will discuss macro aspects of
infrastructure development, funding mechanisms, commercial
management, the investment environment and human resources, will
be tabled at the third APEC summit in Japan in November.
APEC groups Australia, Canada, Chile, Mexico, Japan, China,
Hong Kong, Taiwan, South Korea, Indonesia, Brunei, the
Philippines, Malaysia, Singapore, Thailand, Papua New Guinea, New
Zealand and the United States. (31)