"The ability of the government`s fiscal is in a small balance and therefore we offer the investment in infrastructure sector to both foreign and private parties," Finance Minister Agus Martowardojo said at the meeting of the World Economic Forum on East Asia here on Sunday. The forum among others discussed the failure in the monetary sector as a result of the impact of economic turmoil in Asia.
Present as the speakers at the meeting were Michael Buchanan, Chief Asia-Pacific Economist at Goldman Sach; Stuart T Gulliver, Group Chief Executive HSBC Holding UK; Omar Lodhi, Chief Executive Officer Abraaj Capital Asia Singapore; and Bank Indonesia Deputy Governor Muliaman D Hadad.
Agus Martowardojo on the occasion said the provision of infrastructure was a challenge that Indonesia has to face in the next five years.
The finance minister said around Rp1,400 trillion was needed in the next five years for infrastructure facility in Indonesia.
But he added that the government was only able to provide around 20 to 30 percent of the funds and the rest should be obtained by involving a cooperation with private parties through a public private partnership scheme.
"In the past seven years such a scheme did not give a significant result but it is expected that there will soon be a pilot infrastructure project," Agus said.
He said an infrastructure project with the PPP scheme in East Java would soon be realized and it was expected to be followed by other projects.
Agus admitted that although capital flight could occur any time, Indonesia would not implement a capital control policy.
"I am optimistic that there will be no capital control," the finance minister said, adding that fiscal and monetary conditions in the real sector was good and could support capital inflow.
(Uu.O001/A014)
Editor: Priyambodo RH
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