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RI asks China to fill West-vacated gap in infrastructure

Indonesian President Susilo Bambang Yudhoyono spoke Friday with his Chinese counterpart Hu Jintao in Singapore to express hopes for more investment by Chinese businesses in Indonesia

Abdul Khalik (The Jakarta Post)
Singapore
Sat, November 14, 2009

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RI asks China to fill West-vacated gap in infrastructure

I

ndonesian President Susilo Bambang Yudhoyono spoke Friday with his Chinese counterpart Hu Jintao in Singapore to express hopes for more investment by Chinese businesses in Indonesia.

Yudhoyono underlined China's role in helping Indonesia cope with problems in infrastructure, particularly investment made in the construction of the Suramadu bridge that connects East Java and Madura Island.

"The President thanked the Chinese government and businesspeople for their role in helping upgrade the country's infrastructure," presidential spokesman Dino Patti Djalal said after the meeting.

"He called for more Chinese investment in the sector."

Both leaders, he added, had vowed to enhance bilateral relations.

Indonesia is struggling with development bottlenecks caused by limited road networks, uneven electricity distribution and inefficient ports and airports.

Businesspeople and officials alike have pointed out these problems as the main barriers to new investment, and the primary cause of stunted economic growth.

Last month, state power monopoly PT PLN began implementing rolling blackouts across the country, including in the capital Jakarta.

Yudhoyono has made enhancement of basic infrastructure development one of the key programs of action for the first 100 days of his government.

Observers say Friday's meeting, highlighting as it does China's growing importance for Indonesia, could overshadow Sunday's bilateral talks between Yudhoyono and US President Barack Obama.

China has successfully stepped into the breach left by Western businesses reluctant to invest in Indonesian infrastructure projects, including the Suramadu bridge and 10,000-megawatt power generation scheme.

Officials and experts say funding has long been one of the main problems in infrastructure development, which requires long-term investment.

During the recent East Asia Summit in Bangkok, China unveiled an initiative to invest US$25 billion in infrastructure projects in Southeast Asia, including Indonesia.

The Hu-Yudhoyono meeting was also rumored to have touched on plans to build a Sunda Strait bridge connecting Java and Sumatra islands.

China, through businessman Tomy Winata, has expressed an interest in the Rp 200 trillion project. Three other parties, including from Japan, have also submitted their proposals for the project to the Indonesian government.

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