W. Java to pitch infrastructure
Yuli Tri Suwarni and Zakki P. Hakim, The Jakarta Post, Bandung/Jakarta
A total of 174 foreign and domestic investors are set to take part in the two-day West Java Infrastructure Summit starting on Thursday, in which the provincial administration is offering up 57 infrastructure projects worth Rp 35 trillion (US$3.53 billion).
"We are offering cooperative funding ventures for projects such as toll roads, sea ports and airports, geothermal-based power plants, dams and others," said Memet Hamdan, head of the province's Regional Promotion and Investment Agency (BPPMD).
Held in cooperation with the province's Chamber of Commerce and Industry (Kadinda) and consulting firm PA Asia Ltd., which is affiliated to Brussels-based consultancy group Praaning Meines, and supported by the Asian Development Bank (ADB), the administration hopes the summit will provide a much-needed boost to the local economy.
It earlier said West Java needed at least Rp 200 trillion of investment in infrastructure for its economy to grow from the current 5 percent annual growth to 8 percent during the next five years. Increased growth the administration said would cut the province's unemployment rate and reduce poverty.
West Java, home to 39.14 million people, currently has 2.4 million jobless people and 10 million living under the poverty line.
The province has business opportunities in agriculture, fisheries, tourism, manufacturing, the trade and service sectors and human resources development. However, a lack of infrastructure has discouraged investment in these areas.
The summit's opening ceremony will be held at the Gedung Merdeka, while plenary and working group sessions will follow at Savoy Homann Hotel, both in Bandung.
The organizers have yet to set any investment targets but say they are prioritizing seven toll road projects across the province, the development of an international airport in Kalijati, Majalengka -- about three hours' drive south of Bandung -- and a marine harbor in Cirebon.
The administration also plans to develop a "modest" international fishing and commercial port near Cikalong, Tasikmalaya, in the southern part of the province, to help boost economic ties with Australia and other neighbors.
Memet said the foreign investors included 70 businesses from China, 30 from Singapore, 10 from South Korea, eight from Malaysia, two from India and others from European Union countries.
"Our regional budget is only about Rp 2 trillion, which makes it impossible for us to finance all the development projects we need to boost the economic growth to 8 percent," West Java Governor Danny Setiawan said.
Each project offered in the event would include a feasibility study conducted by the administration, Danny said.
During the event, organizers would also provide free-of-charge legal consultants to explain the legal framework for the projects, he said.
"Investors will most likely ask things regarding legal certainty in the province, so we are providing free legal advice to convince them to invest here," he said.