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)