Go Finance Reporting Jakarta - International Finance Corporation (IFC) at the same time pledged support for infrastructure projects in Indonesia to support the acceleration of national economic growth.
Support will be channeled to the development of infrastructure projects with financing schemes and private cooperation (public-private partnership / PPP).
"Support for the PPP project is a form of participation to support sustainable economic growth and create jobs in Indonesia," said Executive Vice President and CEO Lars Thunell IFC through a statement yesterday.
In addition, Lars is clear, it is also committed to supporting the expansion of access to finance for small businesses, reduce greenhouse gas emissions, and improve the quality of the investment climate. Over the long term cooperation with Indonesia, IFC's total investment in this country until January 2011 has reached $ 4, 1 billion. Total IFC investment projects in Indonesia, there were 101 projects.
Meanwhile, the technical assistance program conducted in Indonesia IFC focuses on improving access to financing and business assistance for sustainable agribusiness and forestry sectors. Infrastructure sector is still a chore that seized the attention of government and business community.
Because the availability of essential infrastructure required to support investment and business climate in Indonesia. Not yet maximal quality of infrastructure makes businesses must pay more for transportation and logistics. This condition is even put Indonesia as one of the countries with the most expensive logistics costs.
The existence of basic infrastructure such as roads, bridges, and ports which are believed to suppress adequately the costs for transportation and business logistics.
Responding to the condition of infrastructure in the country who continually under the spotlight, Principal Secretary Ministry of National Development Planning (VAT) / First Secretary of Bappenas Syahrial Loetan admit that it might still be one factor inhibiting investment.
"The truth is like that. We already know how the condition of our infrastructure, but we should continue to work better, "said Syahrial.
He said the government continued to attempt to maximize the availability of infrastructure in various ways, ranging from increasing the percentage of the budget for the infrastructure to maximize the program of government-private cooperation.
However, Syahrial said, the budget increase does not necessarily able to fulfill all infrastructure needs. Meanwhile, infrastructure projects through PPP had not been realized fully.
Syahrial added that the government is also aware that the availability of basic infrastructure necessary to attract investors. That, he stated, is the obligation of government. Therefore, gradually the basic infrastructure needs will be met government. Basic infrastructure becomes an absolute necessity, particularly in eastern Indonesia.
"Because, if eastern Indonesia are not met the needs of basic infrastructure, the investment is only concentrated in Java. What we try to pursue is the connectedness or domestic connectivity to support the concept of economic corridors are being coordinated, "he explained. (GoFinance)
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