Indonesia is looking to ramp up investment and is seeking to become a new haven in Southeast Asia as the nation’s new government aims to cut costly subsidies.
Indonesian President Joko “Jokowi” Widodo. Photo courtesy Jokowi’s Official Twitter page.
Indonesia’s new leader, President Joko “Jokowi” Widodo, in his maiden speech at the Asia-Pacific Economic Cooperation’s (APEC) CEO Summit in Beijing made one thing clear to the audience in his 13-minute English speech: “This is your opportunity” to invest in the nation.
Jokowi said that Indonesia spends around $27 billion annually to keep fuel prices low and that the nation looks to channel the fuel subsidy from consumption to productive activity.
The savings from the subsidy cuts would be used to build infrastructure, such as much needed ports and railways.
“In five years, we want to build 24 seaports and deep seaports,” on the islands of Sumatra, Kalimantan, Java, Sulawesi, Maluku, and Papua, Jokowi said.
Jokowi also outlined plans to expand Indonesia’s railway network and develop mass-transportation networks in six major cities, including Jakarta, Bandung, and Surabaya.
Jokowi also outlined projects to build power plants to help develop Indonesia’s manufacturing and industrial sectors
Jokowi added that savings would be used to improve livelihoods for rural residents and would give farmers, fishermen, and small and micro enterprises access to capital and better equipment.
“We want to build the dams — 25 dams in five years — from our fuel subsidy, to maintain the water supply to the farming area,” he said. “Some subsidy we want to channel to the fishermen, to give them good engine, to give them refrigerator. We want to increase the income of the fishermen.”
“This is your opportunity, because you know our national budget is limited,” he said.
Jokowi also recognized that Indonesia has ranked low on the ease of doing business surveys and reassured the audience that measures would be taken to improve doing business in the nation.
“A lot of investors, when they come to me, almost all of them, they always complain about land acquisition,” he said. “I will push my ministers, my governors, my mayors, to help clearing this problem.”
Last Thursday, The Jakarta Globe reported that The Indonesian government is planning to offer up 43 infrastructure projects valued at $52 billion to private investors in 2015 under public-private partnership (PPP) schemes.
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