US firms to invest 5 billion USD in infrastructure projects in Indonesia

The International Development Finance Corporation (IDFC) – an independent agency under the US government – plans to invest 15 billion USD in Indonesia, according to the Southeast Asian country’s Coordating Minister for Economic Affairs Airlangga Hartarto.

14, Jan. 2020

Photo by Rendy Saputra on Unsplash
Photo by Rendy Saputra on Unsplash

JAKARTA,VNA - The International Development Finance Corporation (IDFC) – an independent agency under the US government – plans to invest 15 billion USD in Indonesia, according to the Southeast Asian country’s Coordinating Minister for Economic Affairs Airlangga Hartarto.

The corporation prepared a fund of around 5 billion USD and considers cooperating with other sovereign wealth funds, whether United Arab Emirates or Japan, to invest in Indonesia, he said.

He made the statement after President Joko Widodo hosted a reception for IDFC CEO Adam Boehler on January 10, where the president said the Indonesian government needs investment from private parties to fund many infrastructure projects in the country. He assured that Indonesia will continue to make a policy breakthrough to create a friendly investment climate through issuing omnibus law.

Currently, the Indonesian government and the IDFC have discussed various projects in the archipelago, such as Trans Java and Trans Sumatera toll roads, tourism projects, hydro power plant in North Kalimantan and state-owned companies.

Earlier, the government announced Indonesia needs nearly 35.43 quadrillion IDR, or nearly 2,596 billion USD, of investment in five years to reach a six-percent growth.

Of the total figures, the government will contribute 9.4 percent, 8.8 percent from state-owned enterprises, and the private sector will cover 81.8 percent. - VNA