Solve Overlapping Regulation to Boost Investment in Infrastructure Sector

Vice president Boediono reminded the ministers to work hard in revising overlapping regulations to boost investment in infrastructure in Indonesia. The reminder was conveyed in his welcome speech in the opening of Indonesia infrastructure conference & exhibition (IIICE 2010) in jakarta on Tuesday (April 12).

The government should seriously promote investment in infrastructure development. The seriousness must be proven and conveyed to prospective investors in the form of concrete steps implemented in many sectors. For that purpose, the vice president asked that in the next three days, the ministers should interact with prospect investors. “please provide transparent information to prospective investors, and I expect that this event could provide assurance to prospective investors” he said. He also said that to achieve economic growth at 7-8% rate, more optimal infrastructure improvement is required, and the realization requires not a small amount of fund. While, total investment required each year is Rp. 2,500 trillions. It means that total requirement of investment cost for 2010-2014 reaches Rp. 12.500 trillions. “the remaining must come from investment from the businesses. So, the only way that the government can do is to accelerate investment of the businesses, whether state-owned or private enterprises, domestic or foreign, to fulfill the required budget” he said. The vice president added that the government was constantly attempting to invite the businesses in accelerating growth of infrastructure development. Seriousness of the government is reflected from the revision of overlapping regulations. His message to prospective investors id that they should not wait until a perfect investment climate is created. “there is no perfect investment climate in this world. The government will do its best to minimized risk for investors. We have intention and determination. I know that some of them are impatient, and of course we will work more” he said, and expected that investors should not abandon projects which already received funding support or approval from the government. So, if in the IIICE event, there are new projects, the existing projects which already obtained approval must still be maintained. “if now, today, or tomorrow we expect a new project to be operated as soon as possible, we should not forget that there are many existing projects that have been approved, have obtained the necessary licenses or concessions, but are not yet operated, even some of them have been delayed for 10-15 yearsw. This is part of our homework, and no projects are allowed to sacrifice national interest” he said.