The Star 9/7/2010
PETALING JAYA: Malaysian investors should consider Indonesian market as it offers huge potential, including infrastructure projects worth US$47bil that are expected to be rolled out in the next four years.
Indonesian Ambassador to Malaysia Tan Sri Prof Da’i Bachtiar said bilateral trade between Malaysia and Indonesia stood at US$11.5bil last year and was expected to grow by double digits this year.
“Investment from Malaysia in Indonesia was US$1.5bil last year while from Indonesia to Malaysia was US$500mil, which still provide a lot of room to grow,” he said at the Activate Asia: Insight Indonesia Forum yesterday.
The event was co-organised by the Chinese Chamber of Commerce and Industry of Kuala Lumpur and Selangor (KLCCCI) and HSBC Bank.
Tan Sri Prof Da’i Bachtiar ... ‘Indonesia now has a relatively open foreign investment regime.’ Da’i Bachtiar said Malaysia was in eighth position with 23 projects worth US$77.3mil, or 2.1%, of the total foreign direct investment (FDI) in Indonesia in the first quarter. He said the top five investing countries were Japan, Singapore, the United States, the United Kingdom and Australia.
“Indonesia now has a relatively open foreign investment regime and looks to foreign investment to boost its economy. Virtually all sectors allow foreign participation except those of specific national interest.”
He said the government had issued several new regulations to ease the entry of foreign firms and capital into Indonesia.
Chamber president Tan Sri William Cheng said Indonesia was now back on its development track after 10 years of economic reformation post-1997/98 economic crisis.
“With a population of over 230 million and gross domestic product of up to US$515bil, which is driven by its significantly improved domestic consumption, Indonesia has become one of the most attractive markets,” he said.
HSBC Bank Malaysia Bhd executive director Jon Addis said Islamic finance was an area that had great potential in Indonesia as it only contributed 3% of the nation’s total banking assets last year compared with about 20% in Malaysia.
KRA Group CEO Karim Raslan said the large consumption of its people had helped keep Indonesian economy afloat despite the global financial crisis.
He said investors should not just focus on Jakarta as there were a lot of opportunities in places like Palembang, Medan, Pekanbaru and Pontianak.
Showing posts with label Indonesia. Show all posts
Showing posts with label Indonesia. Show all posts
Friday, July 9, 2010
Wednesday, January 6, 2010
New firm to guarantee state projects
New firm to guarantee state projects
Dicky Christanto , The Jakarta Post , Jakarta Tue, 01/05/2010 10:33 PM Business
The government has set up a company to provide financial guarantees to so that firms can access credit to finance infrastructure projects, requiring Rp 1,923.7 trillion (US$207.76 billion) in the next five years.
The company, named PT. Penjaminan Infrastruktur Indonesia (PII), is to help private sector firms working on infrastructure projects backed by public private partnerships by giving guarantees to increase their creditworthiness, Arif Baharudin, a director at the Finance Ministry said in a statement.
The government has injected Rp 1 trillion from the 2009 budget to PII to provide initial capital, making the firm 100 percent state-owned.“Additional capital is expected to be provided in the coming years,” Arif said.
He also said that the World Bank had pledged to disburse up to Rp 1.5 trillion in soft loans to support PII.
The government expects to be able in five years to spend Rp 768 trillion from state funds to finance upcoming infrastructure projects, while the rest is expected to come from private firms.
Dicky Christanto , The Jakarta Post , Jakarta Tue, 01/05/2010 10:33 PM Business
The government has set up a company to provide financial guarantees to so that firms can access credit to finance infrastructure projects, requiring Rp 1,923.7 trillion (US$207.76 billion) in the next five years.
The company, named PT. Penjaminan Infrastruktur Indonesia (PII), is to help private sector firms working on infrastructure projects backed by public private partnerships by giving guarantees to increase their creditworthiness, Arif Baharudin, a director at the Finance Ministry said in a statement.
The government has injected Rp 1 trillion from the 2009 budget to PII to provide initial capital, making the firm 100 percent state-owned.“Additional capital is expected to be provided in the coming years,” Arif said.
He also said that the World Bank had pledged to disburse up to Rp 1.5 trillion in soft loans to support PII.
The government expects to be able in five years to spend Rp 768 trillion from state funds to finance upcoming infrastructure projects, while the rest is expected to come from private firms.
Sunday, December 27, 2009
Unprecedented infrastructure development?
Rendi A. Wintular , Jakarta Mon, 12/21/2009 11:52 AM Review & Outlook
For the government’s economic team, 2010 will be a decisive year to demonstrate its competence in settling the accumulation of five years of homework resolving the protracted problems that are stifling infrastructure development.
A set of policies aimed at expediting key infrastructure projects, notably highway and power projects, were unveiled in late October for all levels of government to work on.
Among the policies widely expected next year is a revision of a 2006 presidential decree on land clearance for public interest and a law on the revocation of land ownership rights.
According to Public Works Minister Djoko Kirmanto earlier this month, a revision to the presidential decree would include the halving of the land price negotiation period from 120 days to 60 days. The private sector will also be allowed to start construction of government-initiated projects as soon as 51 percent of the required land has been cleared.
Djoko is optimistic that all land-purchase policies, especially those for toll road projects, can be passed by the end of January. However, revisions to land clearance laws, he said, would take longer as they would need to be deliberated among lawmakers.
According to Djoko, the government’s negotiation team for land clearance will also be overhauled because its members are made up of incompetent officials working for local administrations.
Most infrastructure projects have hit roadblocks as landowners refuse to sell their land at market prices, demanding prices that often reach irrational levels.
Of the 1,000 kilometers of toll road projects linking the Eastern and Western tips of Java, planned in 2004, only around 40 kilometers have been constructed thus far, according to the Public Works Ministry. (Ha ha ha - blogger)
The Central Statistics Agency reveals growth in highway capacity, excluding toll roads, only reached an average of 3 percent annually between 2002 and 2007.
As of the end of 2007, Indonesia only has 421,535 kilometers of road linking its 1.91 million square-kilometers of land.
Analysts have voiced concerns that limited highway capacity — including toll roads — has already created a bottleneck in logistics and distribution of goods, undermining the nation’s competitiveness.
In order for the private sector to feel secure in building more highways, toll roads and power plants, the government is slated to form a company next year that will cover all risks when participating in government-initiated infrastructure projects.
The company, dubbed as PT Penjamin Infrastruktur Indonesia, will function as an insurer to any risk exposed to the private sector.
The company will complement the already established state-run financing company PT Sarana Multi Infrastruktur in managing the construction of infrastructure.
Aside from highway and toll road projects, the government has also pledged to accelerate the development of its first and second phases of 10,000-megawatt (MW) power plants.
Nearly half of the projects included in the first phase could be ready by the second half of 2010, falling short of the target of being entirely operational in 2009.
Among the policies proposed to accelerate construction is a revision to a set of regulations that will eventually enable state-run power company PT Perusahaan Listrik Negara (PLN) to have flexibility in determining the electricity prices purchased from independent power producers (IPPs).
Under the existing regulations, the government is setting a price cap for PLN when negotiating an electricity purchase with the private sector, regardless any impact from inflation and unexpected soaring costs of plant construction.
According to the Energy and Mineral Resources Ministry, only 18 percent of 50 private companies willing to construct power plants have so far secured a deal with PLN and licenses from the government.
Due to the difficulties, several resource-rich provinces are currently under a protracted plague of electricity shortage.
Aside from limited electricity supplies, the business community is also concerned with interruptions in power distribution due to PLN’s already overstretched facilities.
The company, which has a monopoly in electricity distribution, has recently suffered problems in its storage and transmission networks, which has resulted in rotating blackouts in many parts of the country, most notably in Greater Jakarta.
PLN will need an investment of US$933 million to overhaul and expand its transmission networks next year, according to the company’s president director Fahmi Mochtar.
The company, he said, could only provide 78 percent of the funds, with sourcing for the outstanding amount still being worked out.
Critics have said problems in the company’s sagging facilities had actually been noticed by policy makers as long as five years ago. However, no measures have been proposed.
A combination of stiff bureaucratic mentality and poor coordination among ministries and agencies have contributed to sluggish infrastructure development.
Doubts are lingering in the business community over the ability of economic ministers and bureaucrats to resolve the coordination problems, exacerbated by overlapping regulations.
Several key policies to watch for:
1. Policy synchronization for spatial planning.
2. Revision in land clearance regulations and laws.
3. Reform at the National Land Agency.
4. The forming of the risk-mitigating company for infrastructure PT Penjamin Infrastruktur Indonesia.
5. Regulation issued on forest conversion.
6. Revision to government regulations on the use of idle land.
7. Revision to government and ministerial regulations to increase the portion of coal allocated for the domestic market.
8. Revision to regulations related to PLN’s purchase of electricity from the private sector.
Source: The Office of the Coordinating Minister for the Economy
The author is a staff writer at The Jakarta Post.
For the government’s economic team, 2010 will be a decisive year to demonstrate its competence in settling the accumulation of five years of homework resolving the protracted problems that are stifling infrastructure development.
A set of policies aimed at expediting key infrastructure projects, notably highway and power projects, were unveiled in late October for all levels of government to work on.
Among the policies widely expected next year is a revision of a 2006 presidential decree on land clearance for public interest and a law on the revocation of land ownership rights.
According to Public Works Minister Djoko Kirmanto earlier this month, a revision to the presidential decree would include the halving of the land price negotiation period from 120 days to 60 days. The private sector will also be allowed to start construction of government-initiated projects as soon as 51 percent of the required land has been cleared.
Djoko is optimistic that all land-purchase policies, especially those for toll road projects, can be passed by the end of January. However, revisions to land clearance laws, he said, would take longer as they would need to be deliberated among lawmakers.
According to Djoko, the government’s negotiation team for land clearance will also be overhauled because its members are made up of incompetent officials working for local administrations.
Most infrastructure projects have hit roadblocks as landowners refuse to sell their land at market prices, demanding prices that often reach irrational levels.
Of the 1,000 kilometers of toll road projects linking the Eastern and Western tips of Java, planned in 2004, only around 40 kilometers have been constructed thus far, according to the Public Works Ministry. (Ha ha ha - blogger)
The Central Statistics Agency reveals growth in highway capacity, excluding toll roads, only reached an average of 3 percent annually between 2002 and 2007.
As of the end of 2007, Indonesia only has 421,535 kilometers of road linking its 1.91 million square-kilometers of land.
Analysts have voiced concerns that limited highway capacity — including toll roads — has already created a bottleneck in logistics and distribution of goods, undermining the nation’s competitiveness.
In order for the private sector to feel secure in building more highways, toll roads and power plants, the government is slated to form a company next year that will cover all risks when participating in government-initiated infrastructure projects.
The company, dubbed as PT Penjamin Infrastruktur Indonesia, will function as an insurer to any risk exposed to the private sector.
The company will complement the already established state-run financing company PT Sarana Multi Infrastruktur in managing the construction of infrastructure.
Aside from highway and toll road projects, the government has also pledged to accelerate the development of its first and second phases of 10,000-megawatt (MW) power plants.
Nearly half of the projects included in the first phase could be ready by the second half of 2010, falling short of the target of being entirely operational in 2009.
Among the policies proposed to accelerate construction is a revision to a set of regulations that will eventually enable state-run power company PT Perusahaan Listrik Negara (PLN) to have flexibility in determining the electricity prices purchased from independent power producers (IPPs).
Under the existing regulations, the government is setting a price cap for PLN when negotiating an electricity purchase with the private sector, regardless any impact from inflation and unexpected soaring costs of plant construction.
According to the Energy and Mineral Resources Ministry, only 18 percent of 50 private companies willing to construct power plants have so far secured a deal with PLN and licenses from the government.
Due to the difficulties, several resource-rich provinces are currently under a protracted plague of electricity shortage.
Aside from limited electricity supplies, the business community is also concerned with interruptions in power distribution due to PLN’s already overstretched facilities.
The company, which has a monopoly in electricity distribution, has recently suffered problems in its storage and transmission networks, which has resulted in rotating blackouts in many parts of the country, most notably in Greater Jakarta.
PLN will need an investment of US$933 million to overhaul and expand its transmission networks next year, according to the company’s president director Fahmi Mochtar.
The company, he said, could only provide 78 percent of the funds, with sourcing for the outstanding amount still being worked out.
Critics have said problems in the company’s sagging facilities had actually been noticed by policy makers as long as five years ago. However, no measures have been proposed.
A combination of stiff bureaucratic mentality and poor coordination among ministries and agencies have contributed to sluggish infrastructure development.
Doubts are lingering in the business community over the ability of economic ministers and bureaucrats to resolve the coordination problems, exacerbated by overlapping regulations.
Several key policies to watch for:
1. Policy synchronization for spatial planning.
2. Revision in land clearance regulations and laws.
3. Reform at the National Land Agency.
4. The forming of the risk-mitigating company for infrastructure PT Penjamin Infrastruktur Indonesia.
5. Regulation issued on forest conversion.
6. Revision to government regulations on the use of idle land.
7. Revision to government and ministerial regulations to increase the portion of coal allocated for the domestic market.
8. Revision to regulations related to PLN’s purchase of electricity from the private sector.
Source: The Office of the Coordinating Minister for the Economy
The author is a staff writer at The Jakarta Post.
Sunday, October 18, 2009
Projects worth RM7.5 billion to improve ties
2009/10/18
MALACCA: Eight projects worth almost RM7.5 billion have been proposed by the Indonesian, Malaysian and Thai governments to enhance physical connectivity and better linkages between the three countries.
Minister in the Prime Minister’s Department Tan Sri Nor Mohamed Yakcop said of the eight projects, four would be built in Indonesia, three in Thailand and one in Malaysia.
The projects include the development of
Sumatra ports and toll roads,
Malacca-Dumai Economic Corridor transportation system,
Malacca- Pekan Baru power inter-connection network,
Southern Thailand ports development, and the construction of the
Pak Bara cargo port and
Hat Yai-Sadoa toll road.
“Enhancing physical connectivity and better linkages between the three countries are a key and critical role in the Indonesia-Malaysia-Thailand Growth Triangle’s (IMT-GT) development strategy, ” Nor Mohamed said after the three-day 16th IMT-GT Ministerial Meeting ended here on Thursday.
Besides the proposed projects, Nor Mohamed said he also proposed the IMT-GT could venture into halal products and medical tourism.
“These are among the areas which have tremendous growth potential and would also benefit the three countr ies.” IMT-GT was established in 1993 with the aim of boosting economic growth. Its programmes are private sector driven and facilitated by the relevant ministries in each member country.
Some 200 delegates attended the meeting. Also present were Indonesian Ministry for Economic Affairs senior officer, Raidi Hendro Koestoer, Thailand National Economics and Social Development Board deputy secretary-general Porametee Vimolsiri and representatives from Japan, the Asean Secretariat, Asian Development Bank, Economic Research Institute for Asean and East Asia and IMT-GT Joint Business Council.
The meeting, among others, deliberated on the progress and implementation of the IMT-GT Roadmap to Development 2007-2011 which includes development in tour - ism, halal products and services, agriculture, transportation and human resources development, and the future direction of IMT-GT beyond 2011.
MALACCA: Eight projects worth almost RM7.5 billion have been proposed by the Indonesian, Malaysian and Thai governments to enhance physical connectivity and better linkages between the three countries.
Minister in the Prime Minister’s Department Tan Sri Nor Mohamed Yakcop said of the eight projects, four would be built in Indonesia, three in Thailand and one in Malaysia.
The projects include the development of
Sumatra ports and toll roads,
Malacca-Dumai Economic Corridor transportation system,
Malacca- Pekan Baru power inter-connection network,
Southern Thailand ports development, and the construction of the
Pak Bara cargo port and
Hat Yai-Sadoa toll road.
“Enhancing physical connectivity and better linkages between the three countries are a key and critical role in the Indonesia-Malaysia-Thailand Growth Triangle’s (IMT-GT) development strategy, ” Nor Mohamed said after the three-day 16th IMT-GT Ministerial Meeting ended here on Thursday.
Besides the proposed projects, Nor Mohamed said he also proposed the IMT-GT could venture into halal products and medical tourism.
“These are among the areas which have tremendous growth potential and would also benefit the three countr ies.” IMT-GT was established in 1993 with the aim of boosting economic growth. Its programmes are private sector driven and facilitated by the relevant ministries in each member country.
Some 200 delegates attended the meeting. Also present were Indonesian Ministry for Economic Affairs senior officer, Raidi Hendro Koestoer, Thailand National Economics and Social Development Board deputy secretary-general Porametee Vimolsiri and representatives from Japan, the Asean Secretariat, Asian Development Bank, Economic Research Institute for Asean and East Asia and IMT-GT Joint Business Council.
The meeting, among others, deliberated on the progress and implementation of the IMT-GT Roadmap to Development 2007-2011 which includes development in tour - ism, halal products and services, agriculture, transportation and human resources development, and the future direction of IMT-GT beyond 2011.
Thursday, June 19, 2008
PLUS eyes more overseas highway jobs
PLUS eyes more overseas highway jobs
By Zuraimi Abdullah
BTimes
Published: 2008/06/19
There are tremendous opportunities in India and Indonesia, says PLUS Expressways managing director
PLUS Expressways Bhd will focus on getting more highway jobs abroad, particularly in India and Indonesia, as domestic opportunities dwindle, its top executives say.They said the government's plan to spend on projects that benefit the masses more amid tough economic conditions means that the prospects for new highways in the country "will be quite minimal".Managing director Noorizah Abdul Hamid said there are tremendous opportunities in India and Indonesia. Already, PLUS has toll concessions and highway construction contracts in the two countries.India has planned to add another 1,500km to its highway network, while Indonesia wants to put up an extra 1,000km.
"The tender for the Indian job will be called out by this year," Noorizah told reporters after PLUS' annual general meeting in Kuala Lumpur yesterday.She said PLUS is also keen to offer its services in highway maintenance, both locally and abroad.PLUS' toll rates are scheduled for a raise by 10 per cent once every three years based on the revamped concession agreement sealed in January 2002.The first three years expired in 2004, meaning that the new rates for the subsequent three years were effective from 2005 and 2008. Noorizah said the current new rates would have been implemented from January this year, if not for a deferment following the government's decision to review all highway concessions.The company has since been partially compensated by the government for not charging the new toll rates on its highways, including the North-South Expressway."We have yet to engage in official talks on the toll revision, but we have been providing the information requested by the government," she said.
PLUS' chairman Tan Sri Mohd Sheriff Mohd Kassim said it is still early to estimate the impact of the recent fuel hikes on the traffic at PLUS highways, but generally a slowdown can be expected in the interim.He added that during the previous increase in 2005, the traffic decreased, with the downtrend lasting for about six months before demand stabilised once the public finally got a grip with the reality."Last year, our traffic grew 7.5 per cent, the highest year-on-year growth since 2001. "The figures for January also showed strong growth," Sheriff said.
By Zuraimi Abdullah
BTimes
Published: 2008/06/19
There are tremendous opportunities in India and Indonesia, says PLUS Expressways managing director
PLUS Expressways Bhd will focus on getting more highway jobs abroad, particularly in India and Indonesia, as domestic opportunities dwindle, its top executives say.They said the government's plan to spend on projects that benefit the masses more amid tough economic conditions means that the prospects for new highways in the country "will be quite minimal".Managing director Noorizah Abdul Hamid said there are tremendous opportunities in India and Indonesia. Already, PLUS has toll concessions and highway construction contracts in the two countries.India has planned to add another 1,500km to its highway network, while Indonesia wants to put up an extra 1,000km.
"The tender for the Indian job will be called out by this year," Noorizah told reporters after PLUS' annual general meeting in Kuala Lumpur yesterday.She said PLUS is also keen to offer its services in highway maintenance, both locally and abroad.PLUS' toll rates are scheduled for a raise by 10 per cent once every three years based on the revamped concession agreement sealed in January 2002.The first three years expired in 2004, meaning that the new rates for the subsequent three years were effective from 2005 and 2008. Noorizah said the current new rates would have been implemented from January this year, if not for a deferment following the government's decision to review all highway concessions.The company has since been partially compensated by the government for not charging the new toll rates on its highways, including the North-South Expressway."We have yet to engage in official talks on the toll revision, but we have been providing the information requested by the government," she said.
PLUS' chairman Tan Sri Mohd Sheriff Mohd Kassim said it is still early to estimate the impact of the recent fuel hikes on the traffic at PLUS highways, but generally a slowdown can be expected in the interim.He added that during the previous increase in 2005, the traffic decreased, with the downtrend lasting for about six months before demand stabilised once the public finally got a grip with the reality."Last year, our traffic grew 7.5 per cent, the highest year-on-year growth since 2001. "The figures for January also showed strong growth," Sheriff said.
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