The government is set to offer USD 42.2 billion worth of investment opportunities in infrastructure projects across the archipelago to potential global investors attending the upcoming International Monetary Fund-World Bank (IMF-WB) Annual Meetings.
State-Owned Enterprises (SOEs) Ministry special staffer Sahala Lumban Gaol said investment opportunities to finance 79 infrastructure projects by 22 SOEs would be up for grabs during the meetings, which will take place from October 8 to 14 in Bali.
The 79 infrastructure projects would be worth a total of USD 86.1 billion, consisting of both ongoing and new projects in various sectors, including energy, oil and gas, manufacturing, telecommunications, transportation, seaports and airports, construction, real estate, and property, as well as hotel and tourism.
“The SOEs Ministry will introduce an investment opportunity book that will list investment opportunities, complete with the details and descriptions of the projects,” Sahala told a press conference in Jakarta recently, adding that the book would be distributed during the meetings.
Mani platforms would be available for investors to meet with the government during the event, from investment forums to group meetings, he said.
“Several SOEs are also scheduled to conduct one-to-one meetings,” Sahala explained, adding that toll-road operator Jasa Marga, construction company Waskita Karya, airport operator Angkasa Pura II and electricity firm PLN were among the SOEs hosting discussions during the event.
Sahala further said that a project-signing ceremony involving at least 10 potential investors would take place during the IMF-WB Annual Meetings.
Coordinating MAritime Affairs Minister Luhut Pandjaitan said the government was seeking investors who could fulfill the country’s cooperation principles, which include high environmental standards, implementing an integrated development approach, employing Indonesian workers and ensuring transfers of technology.
“As long as they fulfill the requirements as investors, we will absolutely welcome them,” Luhut said during the same occasion.
According to the IMF’s book title Realizing Indonesia’s Economic Potential published in August, Indonesia’s infrastructure gap remains large compared with its peers, particularly in transportation and power. The book also states that infrastructure investment in the country has been small over the past few years because of budget constraints and structural bottlenecks.
The government has set a target of boosting infrastructure investment by USD 323 billion during 2015-2022 by increasing investment through SOE participation and public-private partnerships. The investments include financing the construction of 3,650 kilometers of roads, 3,258 kilometers of railway, 24 new seaports, 15 new airports, as well as financing the development of power plants with a total capacity of 35 gigawatts.
The government has high hopes for the IMF-WB Annual Meetings in opening investment opportunities as wide as possible to increase infrastructure investment.
National Development Planning Minister Bambang Brodjonegoro said the government would use the opportunity to invite investors to spend in Indonesia, not only in manufacturing and services but also in infrastructure.
Around 19,800 participants from 189 countries are expected to attend the upcoming IMF-WB Annual Meetings in Bali.
In addition to governments, the meetings will also be attended by investors non-profit organizations and academics. Some 3,500 investors are expected to attend the meetings.
Source: The Jakarta Post