"We discussed the concept of an integrated port industry at the Ministry of State-Owned Enterprises (BUMN). The meeting was attended by Deputy Minister II BUMN and a representative of the Dubai Port," President Director of PT Pelabuhan Indonesia IV (Persero) Farid Padang stated in Makassar on Thursday.
Padang expressed optimism that the Dubai Port would collaborate with Pelindo IV to realize the development of Ambon port.
Padang echoed Dubai Port’s interest in working with Pelindo IV to develop the Yos Sudarso Port, Ambon.
He stated that all collaborative processes to be conducted will still go through Pelindo IV.
Indonesia and Dubai Port had earlier forged similar cooperation in the Gresik Industrial Estate, East Java. The collaboration was established between Dubai Port and the Maspion Group to develop the area into a national container terminal.
This commitment was marked by the signing of a memorandum of understanding between PT Pelabuhan Indonesia Maspion and DP World Asia at the Bogor Presidential Palace, West Java, around July 2019.
Indonesia and the United Arab Emirates (UAE) had earlier explored the establishment of a sovereign wealth fund as an alternative financing method for infrastructure development or investment.
In a written statement in Jakarta on Thursday, Coordinating Minister for Maritime Affairs Luhut Binsar Pandjaitan admitted to having received a proposal from the UAE government for the establishment of a sovereign wealth fund (SWF).
"As a result of discussions with the Abu Dhabi Investment Authority (ADIA), the minister of energy, the CEO of Mubadala, and several high-ranking officials in Abu Dhabi about a sovereign wealth fund, we will study this proposal soon, and I hope this decision will not take long," Pandjaitan stated during a meeting in Abu Dhabi on Tuesday, September 17.
The funding will be derived through a collection of investment funds from various countries, including the UAE. Thus, investment in Indonesia can be increased gradually to US$5 billion and thereafter to $10 billion.
The funds can be utilized to finance infrastructure projects or investments, in general.
"The UAE officials will visit Indonesia next month to meet officials of the Indonesian Ministry of Finance and Sarana Multi Infrastruktur to discuss the schemes, and the regulations and legislation needed for the establishment of the SWF. They will also share their experiences with Indonesian officials on the formation of a similar fund with India and Egypt," he expounded.
Pandjaitan believes that application of the concept of endowment fund will facilitate better utilization of state assets, managed by State-owned enterprise (SOEs), to boost the people's prosperity.
Despite the government's ownership share being under 50 percent, with a good contract, it can still control the funding.
An endowment fund or sovereign wealth fund is a financial institution owned by the State that owns or manages public funds and invests them in broad and diverse assets to derive greater returns.
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