Local news wires are reporting on the Indonesia Investment Forum, an event happening on the sidelines of this year's IMF-World Bank Annual Meeting in Nusa Dua. The theme of the forum is 'A New Paradigm in Infrastructure Financing,' a subject that is seen as a critical part of the country's growth and its ambitions to become a regional and global economic powerhouse.
According to The Oxford Business Group the current administration is committed to developing IDR 5,500 trillion (approx. USD 414.6 billion) worth of new public works projects between 2015 and 2019, including large-scale transport, utilities and ICT projects, as well as new schools, hospitals, and water supply and treatment plants."
The World Bank explains Indonesia’s economic planning follows a 20-year development plan, which began in 2005. This has been divided into something called the RPJMN (Rencana Pembangunan Jangka Menengah Nasional) a series of 5-year plans, each with a different development priority.
The current development plan, which runs from 2015 to 2020, is primarily focusing on infrastructure development and social assistance programmes related to education and health care.
One of the keys to the success of this development is private sector financing. The forum is discussing various results of assessments and recommendations related to efforts to accelerate infrastructure development, which include improvements in credit rating of infrastructure projects and strategies for obtaining more efficient financing.
Liputan 6 is reporting the forum believes the development of infrastructure development is a National Strategic Project (PSN) in Indonesia.
Speakers at the Forum include Coordinating Minister for Economic Affairs Darmin Nasution, Minister of Finance Sri Mulyani, BUMN Minister Rini Soemarno, Bank Indonesia Governor Perry Warjiyo and Chair of OJK Wimboh Santoso. Other speakers include multilateral institutions, investment managers, global rating agencies, the Priority Infrastructure Project Acceleration Committee (KPPIP) and SOEs, involving more than 200 potential investors.
Sources: Liputan 6, The Oxford Business Group, The World Bank
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