Market Watch : Indonesia’s Expanded Infrastructure Capacity Discussed at Indonesia Investment Forum (IIF) Hong Kong on November 7
Jakarta, Indonesia, Nov 01, 2013 (ACN Newswire via COMTEX) — As home of the world’s 16th largest economy, Indonesia is duly aware of the importance of an expanded infrastructure capacity to ensure a sustainable and inclusive economic growth. The Government of Indonesia has developed and implemented the Masterplan for Acceleration and Expansion of Indonesia Economic Development (Masterplan Percepatan dan Perluasan Pembangunan Ekonomi Indonesia or MP3EI), aimed at accelerating the country’s infrastructure development.
Emma Sri Martini, President Director, PT Sarana Multi Infrastruktur (SMI) said, “Given the scale of investment required to develop the country’s infrastructure, it is crucial to cultivate a high degree of cooperation among the central government, local governments, state owned enterprises and the private sector. As an infrastructure financing company entirely owned by the Government of Indonesia through Indonesia’s Ministry of Finance, PT Sarana Multi Infrastruktur (Persero) or PT SMI, boasts a unique position to promote the provision of national infrastructure funding through partnerships with private and multilateral financial institutions”.
Established in early 2009, in only four years PT SMI has made its mark through participation in various infrastructure development projects in Indonesia’s electricity, irrigation & waterway, water supply, transportation as well as toll road sectors. Total financing commitment grew by 40,12% in 2013 (as of 6 October 2013), reaching IDR 3.112 billion from IDR 2.221 billion in December 2012. Total Project Cost has been financed are IDR 27 trillion and creating multiplier effect of 10,9 times.
Sri Martini said, “We are glad that PowerPR and Investor Daily Indonesia organize the Indonesia Investment Forum (IIF) in Singapore in May 2013, and Hong Kong in November 2013. The topic of the forum is discussing various investment opportunities in Indonesia, and opening a dialogue between the Indonesian Government, Indonesian enterprises as investment targets and Global Investors. We hope that Indonesia Investment Forum will create a better understanding of the business opportunities in Indonesia, which in turn will create investment interest in Indonesia as well as to increase the number of investors who will invest in Indonesia”.
Christovita Wiloto, Founder & Chairman of Indonesia Investment Forum said, “Indonesia is targeting Rp 390 trillion of investment at end of 2013 and Rp 506 trillion for 2014. With the GDP expected to reach US$ 1trillion this year, Indonesia is the largest economy in Southeast Asia. Much less affected by the global financial crisis compared to its neighboring countries, Indonesia’s economy grew by 6.3% in the first semester of 2012, making it the fastest growing G20 economy after China”.
Indonesia grew by 6.5% in 2011 and is expected to grow by 6.3% this year. Future economic expansion is expected to include more inclusive growth as nominal per-capita GDP is expected to quadruple by 2020.
A large part of our economic success is a result of prudent fiscal stewardship that focused on reducing the debt burden. Indonesia’s debt to GDP ratio has steadily declined from 83% in 2001 to less than 25% by the end of 2011, the lowest among ASEAN countries, aside from Singapore which has no government debt.
Primus Dorimulu, Chief Editor of Investor Daily said, “Indonesia has huge investment opportunities as developing country. Government, businesses, and investors should optimally utilize the vast investment opportunities in Indonesia. Along with that, PowerPR and Investor Daily will organize Indonesia Investment Forum regularly, the next forum will being held in Hong Kong on November 7 and New York in March 2014. The forum will discuss various investment opportunities in Indonesia and will open the dialogue between Indonesian government, Indonesian corporations as the investment target and Global Investors”.
BKPM to revise 2014 investment target
The Investment Coordinating Board (BKPM) says there will be a revision of Indonesia’s investment target for the year 2014. BKPM head Mahendra Siregar said that the revision might take place due to the continually declining global economic condition. The BKPM is targeting Rp 390 trillion of investment at end of 2013 and Rp 506 trillion for 2014.
Christov said, “This forum will be attended by Indonesia corporations and Global Investors. There will be Public Expose of Indonesia State-Owned Enterprises, Indonesia Districts and Cities. It will be very comprehensive for the first time”.
Primus Dorimulu, Chief Editor of Investor Daily said, “To continue the success of Indonesia Investment Forum in Singapore in May 2013, PowerPR | Christovita Wiloto & Partners and Investor Daily now present Indonesia Investment Forum in Hong Kong”.
Primus said, “PowerPR and Investor Daily began organizing Indonesia Investment Forum in Singapore, on May 2013. The forum will discuss various investment opportunities in Indonesia and will open the dialogue between Indonesian government, Indonesian corporations as the investment target and Global Investors. This forum will be attended by private corporations, Indonesia State-Owned Enterprises, Indonesia Districts / Cities, Global Investors and various global business communities”.