DUBAI, KOMPAS – Indonesian infrastructure projects being promoted in global financial markets are attracting a number of investors who are interested to hear more about the projects’ details. Financial instruments and organizations in Indonesia are deemed adequate to attract foreign investors.
This picture emerges in a number of meetings on the sidelines of the 2018 Annual Investment Meeting held in Dubai, the United Arab Emirates, from Monday to Wednesday (9-11/4/2018). Investment companies meeting with Indonesian representatives include DUX Capital, Alcazar Capital, IFC, Canaccord Genuity, Abu Dhabi Global Market and the UAE International Investors Council.
They have expressed their interest for more detailed information on various infrastructure projects and the funding schemes the country offers.
National Development Planning Minister Bambang Brodjonegoro told Kompas on Tuesday (10/4) evening that thus far, the corporations that invested in the Indonesian market were those who already had strong financing and experiences in Indonesia. Through new approaches promoting infrastructure and regional development, a number of investors immediately expressed their interest because of the more detailed information available.
“They’re interested as they have experience in the sectors we offer. Now they need local partners. This is where the government comes in, namely to answer their questions on the local partners they can work with. Another problem is that despite the huge amount of investment pouring into our country, including from the Middle East, knowledge on investment opportunities in Indonesia is terribly lacking,” Bambang said.
He added that he hoped all parties involved in investment promotion would have adequate information about the local partners available for the projects. These potential local partners must participate in promotional efforts as communication between businesspeople is clearer than having to go through the bureaucracy or government.
Local partners are a necessity in establishing communication with potential investors. Several corporations requested to have state-owned enterprises as local partners.
“The people I met with have little knowledge on the potential of investment in Indonesia. I just started by giving them a general overview and they saw that Indonesia is a huge market. Thus far, they are focused on advanced countries as they seek safer investments. From my talks with them, we need to be able to convince them and give opinions on what projects they can be involved in and how they can enter the Indonesian market,” Bambang said.
Packaging
Indonesia Investment Corporation (PINA) CEO Ekoputro Adijayanto said a new approach PINA was taking in promoting local investment was to create attractive packages for a number of national strategic projects to improve the preparedness for welcoming investors. Investors see PINA’s presence as proof of the Indonesian government’s presence and support.
“After recieving an explanation from us, several investors are interested in projects including infrastructure, logistics, biomass power plants, sharia financing and co-financing. Some have expressed interest specifically in tourism,” Ekoputro said.
