Jakarta (ANTARA) – Finance Minister Sri Mulyani Indrawati on Monday said there were several factors behind the government’s decision to establish the Indonesia Investment Authority (INA), including the need for improving public welfare and infrastructure.
“We need funds to create various innovative instruments and institutions that can increase the capacity to finance development,” she said at a joint meeting with Commission XI of the Indonesian Parliament here.
The government needs large funds to improve the welfare of the Indonesian people, and therefore, it has formed the INA, she added.
Moreover, Indonesia is aiming to be among the five strongest countries in the world by 2045, and the estimated investment needed for infrastructure will reach Rp6,645 trillion, she noted.
The funds are expected to be derived from the State Budget, BUMN (state enterprises), and the government, in cooperation with business entities, she informed.
The characteristics of financing, especially for infrastructure development, are capital intensive with high cost and long tenures, she said.
On the other hand, the rate of foreign direct investment (FDI) in Indonesia has not increased significantly, despite increasing demand, she added.
Sri Mulyani said that several sovereign investors are indeed interested in investing in the country, but they need strong and reliable strategic partners, both legally and institutionally.
Therefore, the Indonesian government sees the need for a breakthrough to form reliable and trusted investment partners, one of which is by setting up the INA, she remarked.(INE)
Source: Antara News