IMF-WB - Indonesia holds bright prospects for long-term investment

IMF-WB - Indonesia holds bright prospects for long-term investment

Investment Coordinating Board (BKPM) Head Thomas Lembong opined that Indonesia`s long-term investment prospects are bright, so long as there is a sustained increase in demography, technology, and productivity. (Mentari Dwi Gayati)

Jimbaran, Bali (ANTARA News) - Investment Coordinating Board (BKPM) Head Thomas Lembong opined that Indonesia`s long-term investment prospects are bright, so long as there is a sustained increase in demography, technology, and productivity.

"It is very clear that Indonesia`s long-term investment prospects are very bright," Lembong remarked at the 2018 Infrastructure Forum as part of the IMF-WBG Annual Meeting in Jimbaran, Bali, on Thursday.

He noted that the government was working to attract investors looking to invest long-term capital, so the steps to maintain and improve economic fundamentals hold significance.

Fundamental strengthening through the infrastructure sector has begun to be carried out by the government to support productivity and efficiency of the economy.

President Joko Widodo (Jokowi) also announced that the next focus will be on building human resources through improving skills and knowledge of the workforce.

"Often our workers lack knowledge or skills and have not been trained to be productive workers to maintain the attractiveness of investment in Indonesia," Lembong noted.

The BKPM has collaborated with PT Bank HSBC Indonesia to organize the Infrastructure Forum 2018 as a forum for investors to communicate with the government on infrastructure investment opportunities in Indonesia.

HSBC Asia Pacific Deputy Chairman and Chief Executive Peter Wong stated that Indonesia has the potential to realize the construction of infrastructure projects by looking at the needs of the private sector.

"However, there is a need for a good physical, economic, and financing link. In other words, infrastructure is the key," Wong pointed out.

PT Bank HSBC Indonesia President Director Sumit Dutta explained that the government and private sector need a solutive financing scheme to support the sustainability of infrastructure project development in future.

"One of them is through investment in this infrastructure development project," Dutta stated.

According to data from the Asian Development Bank, Asian infrastructure investment needs for the 2016-2030 period are estimated at US$22.6 trillion, or some $1.5 trillion per year.

For Southeast Asia, investment needs during the 2016-2030 period amounted to $2.7 trillion and increase to $3.1 trillion after taking into account disaster mitigation and adaptation to disaster.





Reporting by Calvin Basuki
Editing by Otniel T, Yoseph Yariyadi

 

Comments