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ndonesia'€™s initial drafts on a connectivity framework and multi-year plans for investment in infrastructure development are taking a new course, an official says on Saturday.

The new course was made possible after members of the Asia-Pacific Economic Cooperation (APEC) threw their weight behind the proposals at the conclusion of the two-day meeting in Medan.

Yuri O. Thamrin, who chaired the third APEC senior official meeting, announced that with the support, Indonesia'€™s proposals could be endorsed as concrete deliverables of the upcoming APEC Summit scheduled for Oct. 7-8 in Nusa Dua, Bali.

'€œFrom now on, members are tasked with enriching the documents to take a firmer shape so they can serve as a strong basis to enhance APEC'€™s cooperation to promote connectivity and boost infrastructure until 2030,'€ he said, pointing out the end of August was the deadline for improved drafts.

Under the leadership of Indonesia this year, APEC members are seeking ways to improve connectivity and pool resources to finance infrastructure projects, a priority for the 21-member economic partnership in addition to two others: attaining the Bogor goals '€” APEC commitment to embrace open trade and investment by 2020 '€” and sustainable growth with equity.

Connectivity and infrastructure investment have been key concerns for business communities in the region as they are crucial to boosting economic activities and spurring growth in the 21 economies across Asia-Pacific.

Nevertheless, a lack of funding has remained the main stumbling block in developing infrastructure as investors are wary of feasibility and profitability of such projects that may run over a very long period and take up a sizeable amount of investment but involve high risks, including regulatory uncertainties.

Government intervention to help minimize the risks is considered necessary to guarantee the processes, was one point raised by the APEC Business Advisory Council (ABAC).

According to one estimate, it would take around US$8 trillion in infrastructure investment to better connect the fast-growing and vibrant region.

Set up in 1989, APEC accounts for 40 percent of the global population, 54 percent of the world'€™s income and 44 percent of worldwide trade.

Through a commitment to liberalize trade, members reduced import duties from 17 percent in 2002 to 5.8 percent in 2010. They also lowered transaction costs by 5 percent between 2007 and 2010, which translates into a business saving of $58.7 billion.

Indonesia'€™s trade with APEC economies jumped almost 10-fold from $29.9 billion in 1989 to $289.3 billion in 2011.

Almost half of APEC members are included on the list of 20 of the biggest foreign investors in Indonesia. In 2010, foreign direct investment (FDI)from fellow members in Indonesia stood at $9.26 billion and surged 15.55 percent to $10.7 billion in 2011.  

During the senior officials meeting, Indonesia as APEC'€™s chair this year has also raised concerns about widening gaps between big and small business players as economies in the region further ease barriers on trade and investment and facilitate the movement of labor.

The National Development Planning Board'€™s (Bappenas) deputy for the economy, Prasetijono Widjojo Malang Joedo, said discussions were under way to figure out ways to empower vulnerable groups in society.

Indonesia is also trying to add agricultural products, particularly its main commodities palm oil and rubber, to the extended APEC environmental goods list, making them subject to tariff reductions of up to 5 percent by 2015.   

The Trade Ministry'€™s director general for international trade cooperation, Iman Pambagyo, said that Indonesia expected a response from fellow members by early August.

So far, he said, some countries, such as Brunei Darussalam and Canada, have expressed support.