"I think good relations between Indonesia and India could be deepened and expanded in a concrete manner, especially in airport and seaport development. It is also not impossible in railway development projects," Transport Minister Budi Karya Sumadi sJakarta (ANTARA News) - The Indonesian Government has invited several countries to participate in the development of infrastructure being carried out across the country to improve the national connectivity.
China and Japan are currently been engaged in various infrastructure projects, such as rapid railway projects on Java Islands.
Now, the Indonesian Government is trying to persuade India to be involved in the constructions of various other projects, such as seaports, airports, and railways.
The offers were conveyed by Transport Minister Budi Karya Sumadi while speaking at an India-Indonesia Infrastructure Forum (IIIF) in Jakarta on March 19, 2018.
Indonesia trusts India, because the south Asian nation is very experienced in developing large-scale infrastructure projects.
"I think good relations between Indonesia and India could be deepened and expanded in a concrete manner, especially in airport and seaport development. It is also not impossible in railway development projects," the minister told the forum's participants.
He remarked that large-scale projects offered to Indian investors include the constructions of Kualanamu Airport of Medan in North Sumatra and Sultan Aji Muhammad Sulaiman Airport of Balikpapan in East Kalimantan, as well as medium-scale projects, such as Radin Inten II Airport of Lampung, Juwata Airport of Tarakan in North Kalimantan, and Komodo Airport of Labuan Bajo in East Nusa Tenggara.
Seaport projects offered to Indian investors include the Kuala Tanjung port of North Sumatra and Bitung port of North Sulawesi. In addition, there are several small-scale projects in central Indonesian region.
The former chief executive of state-owned airport operator Angkasa Pura I remarked that offering infrastructure operation, such as airport and seaports operations to foreign investors, is not the same as selling assets to foreign investors.
"It is only an offer of limited concession for a certain period," he added.
Limited concession for management of infrastructure is offered based on a number of considerations, such as the need for funds and technology, he revealed.
"We also want foreign investors' collaboration to win positive sentiment from a country. India is quite influential to provide positive sentiment," he explained.
In response to the offers, Indian investors consider airport management business in Indonesia attractive.
Indian Ambassador to Indonesia, Pradeep K Rawat, remarked that there are reliable companies in India that are interested in bringing their expertise to Indonesia through cooperation.
"The prospect is very good. I think the business opportunity is also good," he pointed out.
Rawat said one Indian company has so far already cooperated with state-owned airport management company Angkasa Pura in Bali.
"We also have several other companies that are the best in airport management that could make airport management effective. Their success may be brought here," he said, adding that the private sector cooperation is wide and offers a lot of opportunities.
The Indian underlined India`s growing economic growth and Indian investment success stories abroad.
In the next 20 years, India is targeting to disburse investment funds of US$4.5 trillion in the infrastructure sector.
"This is certainly an opportunity for Indonesia which needs investment funds in various infrastructure sectors," Rawat stated.
The India-Indonesia Infrastructure Forum (IIIF) held in Jakarta on March 19 is the first infrastructure forum ever held by the Indian Embassy in Indonesia and the office of the Indonesian Coordinating Minister for Maritime Affairs.
The forum is meant to encourage Indian investors to invest in infrastructure projects in Indonesia.
"We do not know yet (about the investment value), as we must first look at the projects. However, they have quite a large number of investments in Indonesia," Coordinating Minister for Maritime Affairs Luhut Binsar Pandjaitan stated.
In fact, Indian investors are interested in investing in a number of projects, such as electricity, roads, airports, hydropower, ports, pharmaceutical industry, and information technology.
About 30 high-level delegates and Indian CEOs from infrastructure sectors, such as ports, electric power, airports, water resources management, hospital management and healthcare systems, 4.0 industries, and IT, were present at the forum.
Among Indian companies participating in the forum included GMR, GVK, Adani, Larsen and Toubro, Tata Power, TCS, Tech Mahindra, Adani, Narayana Health, WAPCOS, EXIM Bank, Jet Airways, and IOCL.
From Indonesia, over 80 industrial partners such as Pertamina, Garuda Indonesia, Angkasa Pura, Pelindo, and Jasa Marga participated in the forum.
A good connectivity is crucial for Indonesia, a huge country whose distance between the westernmost p art of the archipelago and the easternmost is equal to the distance between London and Dubai or Los Angeles and New York.
The vast Indonesian archipelago and its waters are rich in natural resources and tourist spots, but many of its outermost and remote regions are underdeveloped due to the lack of infrastructure and facilities.
To improve connectivity and to address the underdevelopment in the country, the Joko Widodo (Jokowi) administration has accelerated infrastructure development in various regions, particularly in remote and eastern regions of Indonesia.
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Reporter: Fardah Assegaf
Editor: Heru Purwanto
Copyright © ANTARA 2018
