Nusa Dua (TheInsiderStories) – Indonesia’s Investment Coordinating Board eyeing hundreds of investors through IMF-WB Annual Meetings 2018 in Nusa Dua, Bali to invest in infrastructure projects, said one government official on Thursday (11/10).
The effort in order to encourage the development of infrastructure projects in Indonesia and to realize the vision of the Indonesian Government as the 4th largest economy in the world by 2045.
The chairman Thomas Lembong explained, government has switched strategy to gain infrastructure funding from private sector and stocks market amid Rupiah fall.
“Securitization or monetize infrastructure assets that trigger capital inflow, it’s getting urgent,” he said.
According to him, many investors from Europe interested to know more about the infrastructure funding. While investors from Japan, South Korea, Singapore, and China already interested to invest in Indonesia’s real sector.
From the Rp600 trillion (US$41.34 billion)-value projects offered to investors, Lembong admitted has secured $31.4 billion investment commitment for power plant, construction, and logistics from China, Hong Kong, Netherlands, and Malaysia. The agency also offered telecommunication and fiber optic cable installation or communication network improvement to foreign investors.
HSBC Asia Pacific Deputy Chairman and Chief Executive Peter Wong said in his opening remarks said, that Indonesia not only large in the population, but also has a lot of potential that is ready to be explored and utilized. “However, there is a need for a good physical, economic and financing link. In other words, infrastructure is the key,” he stated.
From the data of the Asian Development Bank, the estimated infrastructure investment needs for Asia from 2016-2030 are recorded at $22.6 trillion or around $1.5 trillion per year. By taking into account disaster mitigation and adaptation, the required increase in investment costs increases to $26.2 trillion or $1.7 trillion per year.
For Southeast Asia, in the 2016-2030 period requires infrastructure investment of $2.7 trillion and taking into account disaster mitigation and adaptation to disaster increases to $3.1 trillion.