Tanjung Benoa, Bali (ANTARA News) - The government has offered investors to team up with 21 Indonesian state-owned companies to develop some 80 projects worth US$42 billion in the country.

"I assure that cooperation with state-owned companies is a proper approach to invest in Indonesia and there is no other right moment than now," State Enterprises Minister Rini Soemarno said during Indonesia Investment forum 2018 in Tanjung Benoa, Bali, on Tuesday.

The government will continue to develop infrastructure projects in the fields of energy, land transportation, sea transportation and air transportation, she said.

The development of the energy sector is directed towards achieving the electrification ratio of 99.9 percent at the end of 2019 and increasing the proportion of renewable energy in the fuel mix, she noted.

In the transportation sector, the government has set itself the target of constructing 1,794-kilometer toll roads, increasing the cargo capacity of sea toll roads to 34.8 million TEUs (twenty-foot equivalent units), and developing airports to serve some 235 million passengers at the end of 2019, she said.

To achieve the target of developing the infrastructure projects, the country needs to combine funding sources since the capability of the state-owned companies to seek loans for expansion projects is limited, she said.

Hence, more innovative financing structure is needed to complement conventional financing sources, such as banking loans and bonds, she said.

She made it clear that the government had launched an innovative financing structure including toll road asset-backed securities, bonds for ongoing projects (brownfield) and Komodo Bond.

The government will also launch an infrastructure investment fund product in the form of collective investment contract (DINFRA), she added.

"Looking ahead, we will also encourage direct investment, strategic partnership, and innovative long-term project financing. The investor society`s support will be a key to achieving the targets of infrastructure development in Indonesia," she said.

Indonesia is a developing nation which has positive economic outlook thanks to the rapidly growing middle-income class. Hopefully, it will be an excuse for investors to invest in Indonesia, she said.

Reporting by Calvin Basuki

Editing by Suharto/Bustanudin

Reporter: Antara
Editor: Gusti Nur Cahya Aryani
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