Regions gear up for investment forum

Aditya Suharmoko ,  The Jakarta Post ,  Jakarta   |  Thu, 05/22/2008 11:23 AM  |  Business

Up to 35 regions have so far confirmed their participation in the Indonesian Regional Investment Forum (IRIF), which will exhibit more than 200 projects worth US$18.9 billion in the agribusiness, mining and energy, infrastructure, property and tourism sectors.

The two-day event is scheduled to start Monday.

"It is far above our initial target of between $6 billion and $8 billion," said Tony Gourlay, project leader of the IRIF, on Wednesday.

He said the number of participating regions more than doubled the 16 that attended the IRIF held in November 2006, in which Indonesia secured almost $6 billion in investments.

He said more than 300 investors from China, India, the U.S., Japan, Singapore, Malaysia and several European countries had already shown interest in the offered projects.

The biggest draw comes from the infrastructure projects, including the construction of the Bojonegara oil refinery, the Penajam-Balikpapan and Batam-Bintan bridges, the Balaraja agribusiness terminal, the Cilegon-Bojonegara tollway and the Sangkimah airport in East Kutai.

Dumai regency in Riau will offer two projects; the development of a railway network system and an industrial area, while Kutai Kertanegara in East Kalimantan will put on offer the construction of an international container terminal.

"The largest project to be offered in terms of value is the development of Bojonegara oil refinery in Banten -- $4 billion -- while the smallest one is a cattle breeding project in Central Sulawesi -- $81,000," said Gourlay.

Irman Gusman, the forum's chairman and Regional Representatives Council vice chairman, said Wednesday the forum aimed to improve social and economic development in the regions, and to reduce unemployment.

Thailand's former prime minister Thaksin Shinawatra; the chairman of Malaysia's palm oil producer Sime Darby, Tun Musa Hitam; and the CEO of Malaysia-based investment bank Khazanah Nasional, Dato' Azman Mokhtar, are scheduled to deliver speeches during the forum.

Prominent management consultant Kenichi Ohmae, described as one of the world's top five management gurus by The Economist, will also make a speech.

Businesspeople including James Riady of the Lippo Group, PT Telekomunikasi Indonesia chairman Tanri Abeng and Saratoga Capital Sandiaga S. Uno, will on May 26 take part in a question-and-answer session on investments in the regions.

Finance Minister Sri Mulyani Indrawati, Bank Mandiri president director Agus Martowardojo and Bank Indonesia senior deputy governor Miranda S. Goeltom are set on May 27 to discuss efforts to strengthen the banking sector in the regions.

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