Wednesday, 22 June 2011

Rp. 12,500 Trillion Investment Needed to Attain 6.4 – 6.8 Percent Growth

Deputy Head of the Coordinating Board Investment (BKPM) in capital investment Planning. Himawan hariyoga estimated the need for investments per year at 2500 trillion, so the total need for investment from 2010 to 2014 came to Rp. 12.5000 trillion. “people said the need for financing was only Rp. 2,500 trillion. But in act to calculate it properly the need is Rp. 2,500 trillion per year. So the investment need to attain 6,4% - 6,8% growth per year (2010-2014) totaled Rp. 12,500 trillion,” Himawan said after the opening ceremony of Indonesia International Infra-structure Conference and Exhibition (IIICE 2011) in Jakarta on Tuesday (12/4). According to Himawan, of the total need, the need to build infra structure came to Rp 1,923 trillion; this figure was calculated from the need for infra structure investment which reached 4% of GDP.“based on the need for infra structure for a country like ours, the total investment should be at least 5% against GDP, but now it is only 3% against GDP, so the figure of Rp 1,923 trillion appears” he underscored. The same figure was also exposed by the ministry of PPN/Bappenas Armida Alisjahbana, who stated that to realize development target for the period of 2010-2014 a fund of Rp.1.923.7 trillion was needed. The financing was needed to realize economic growth which had been set at above 6% per year and 7,7% by end of 2014. To meet the need for investment to government exercised the government private sector cooperative financing scheme (KPS) for building and development of infrastructure “ in many aspects Indonesia must learn from countries who had successfully exercised the KPS financing scheme, such as india. “Armida was quoted as saying. Furthermore Armida said, the challenges if developing KPS in Indonesia was among others to change the mindset of the project manager of PJPK and planning payment scheme for infra structure development the change of mindset was mainly in regard to use of public fund functioned as facilitator and catalysator, while investment of the private sector functioned as backbone of infra structure financing.

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