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Executive column: Infrastructure Asia chief shares investors view on RI projects
The Jakarta Post’s Farida Susanty and Mardika Parama talked online to IA executive director Seth Tan on Aug. 14 to learn more about foreign investors’ views on Indonesia’s infrastructure projects and how the pandemic affects infrastructure financing.
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Infrastructure Asia executive director Seth Tan. (Courtesy of Infrastructure Asia/-)
I
em>Indonesia has a huge appetite for private capital to fund its infrastructure projects, especially in President Joko “Jokowi” Widodo’s administration, which puts infrastructure as his economic policy centerpiece to boost the archipelago nation’s connectivity and economic output.
The National Development Planning Agency (Bappenas) has estimated that the country will need infrastructure investment worth US$429.7 billion between 2020 and 2024 to achieve the government’s National Medium-Term Development Plan (RPJMN) targets.
Infrastructure Asia (IA), a Singapore-based infrastructure financing advisory group, understands the opportunities and plights of Indonesia’s infrastructure ambition, as the institution has been working alongside the government to attract private investors.
The Jakarta Post’s Farida Susanty and Mardika Parama talked online to IA executive director Seth Tan on Aug. 14 to learn more about foreign investors’ views on Indonesia’s infrastructure projects and how the pandemic affects infrastructure financing. Below is the excerpt from the interview.
Question: Could you tell us more about IA’s latest cooperation with the West Java administration?
Answer: The topic that they want us to help at the beginning is in regards to transit-oriented development [TOD] projects. It’s a newer form of urban transport that is combined with real estate in order for the project to be more resilient. Especially after the COVID-19 pandemic, it would stress the public transportation providers if they only rely on a farebox to generate revenues. We believed that this newer model, as has been done by Singapore-based players, can be taken into reference when West Java’s administration wants to develop TODs.
The second topic that we are going to work alongside West Java’s administration is regarding the waste management system. It is the continuation of our singular collaboration project and hopefully, it would lead to many more across the value chain.
