State-Owned Enterprises Minister Rini Soemarno said that with the company, Indonesia would no longer rely solely on the state budget and funds from SOEs to develop infrastructure projects.

"We also need the participation of private sectors and other investors to help Indonesia have a better future," she said in her speech during the launch of Bandha Investasi Indonesia in Jakarta.

The company, established by state-owned investment firm Bahana Kapital Investa and Danareksa Capital, will act as a bridge between potential investors – namely SOEs and private domestic and international investors – in financing infrastructure projects.

Currently, the firm is collaborating with financial SOEs like insurance firm Asuransi Jasa Raharja, pension insurance firm Taspen and credit insurer Perum Jamkrindo to deal with investors in infrastructure projects. Now, more companies, including those from the private sector, would be invited to take part in projects.

Bandha Investasi Indonesia commissioner Marciano Herman said investments could be in the form of equity and bonds or direct investment into existing projects.

Marciano, however, did not go into detail over which projects would be financed first through the new firm, saying that it would review 114 ongoing infrastructure projects being developed in the country. Indonesia needs more than Rp 5 quadrillion (US$349.50 billion) to fund infrastructure projects such as toll roads, airports, seaports and power plants between 2014 and 2019. (ris/bbn)

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