London, United Kingdom: Today, 16th March 2018, marks the second day of the two-days ‘Indonesia Infrastructure Investment Forum (IIIF)’. Organized by the Indonesia Investment Promotion Centre in London, in cooperation with the Indonesian Embassy in London and Central Bank of Indonesia (BI) and supported by: Bank Mandiri, BNI, the City UK, Institution of Civil Engineers (ICE), KPMG, Pinsent Masons LLP, UK-ASEAN Business Council (UK-ABC) and International Capital Market Association (ICMA), the IIIF aims to bring together various stakeholders from the Indonesian Government, representatives from Indonesian SOEs, and potential foreign investors, within a forum for dialogue to promote and highlight the various infrastructure investment opportunities in Indonesia.
After a highly successful first day, which was attended by numerous Indonesian Government dignitaries and a significant number of potential foreign investors, the second day of the IIIF, was opened by a keynote speech, delivered by H. E. Dr Wimboh Santoso, Chairman of the Board of Commissioners of the Republic of Indonesia’s Financial Services Authority. Speaking to an audience filled room, Dr Wimboh started his speech by highlighting Indonesia’s solid economic position; Indonesia’s stable growth rate of 5% in 2017, its manageable inflation rate (3.18 % as per February 2018) and the nation’s adequate levels of foreign exchange reserves (USD 128 billion as per February 2018). Dr Wimboh concluded his speech with a thorough and clear explanation of the benefits of investing in Indonesia. Indonesia’s strengthening domestic capital markets, its improvement with regard to its investment rating grade, and most importantly, Indonesia’s significant improvement within the ‘Ease of Doing Business in Indonesia’ Index, make Indonesia worthy of increasing interest with regard to foreign investment.
The floor was then passed to the first panel of the day, with the theme ‘Infrastructure Project Funding and Guarantee’. This first panel was moderated by Mr John Kjorstad, Global Services Infrastructure Leader, KPMG. Panellists consisted of Mr Muhammad Wahid Sutopo, Executive Business Director of PT PII (Indonesia Investment Guarantee Fund and Scheme), Mr Indar Barung, Division Head of Financing PT SMI (Indonesia Infrastructure Project Preparation and Funding), and Mr Darko Hajdjukovic, Head of Analytics, Fixed Income and Funds from the London Stock Exchange. This first panel aimed to introduce potential foreign investors to the funding and guarantee process of investing within Indonesia’s infrastructure sector. The two panellists from Indonesia’s PT PII and PT SMI, respectively, provided a thorough overview of the Government of Indonesia’s investment guarantee programme and various services that both these State owned enterprises provide in order to support foreign investment projects in Indonesia. The representative from the UK Stock Exchange then provided a detailed explanation of the workings of the UK financial sector and how it supports infrastructure development in the UK, thus providing an example of how Indonesia’s growingly robust financial sector may play a role in supporting foreign investment opportunities. The panel was followed by a vibrant Q&A session, providing forum participants the chance to delve deeper into the details of the panel presentations.
After a lunch spread, the second and the last panel commenced, with the theme, ‘Financing Opportunities on Non-State Budget Infrastructure Projects’. This panel was moderated by Mr Donny Hutabarat, Head of the Indonesian Central Bank London Office. Panellists of this session consisted of Mr Nanang Hendarsah from Central Bank of Indonesia, Mr Ferry Robbani, Senior VP PT Bank Mandiri Tbk; Mr Teddy Saputra from PT BNI Tbk. and Mr Antoine Kerreneur, Principal at Global Infrastructure Partners. This panel aimed to introduce forum participants to the various funding opportunities available to support infrastructure investment projects in Indonesia and to show the concrete commitment that the Government of Indonesia has placed on promoting investment projects within the infrastructure sector. The panel gave a taste of the role of state banks, such as Bank Mandiri and Bank Negara Indonesia, in supporting infrastructure investment projects in Indonesia, what the Government of Indonesia, through the PINA project, has done to promote and support foreign investment in Indonesia, and how the OJK regulates and ensures the reliability and feasibility of investment projects in Indonesia. This panel acted as a crucial introduction to the details of investing in Indonesia and highlighted the sound commitment the Government of Indonesia has shown in the area of supporting sound investment climate for infrastructure projects in Indonesia. The panel was followed by a vibrant Q&A session.
Day 2 of the IIIF also concluded with crucial one-on-one meetings between representatives of the Indonesian Government, Indonesian SOEs and potential foreign investors. These meetings gave forum participants the chance to delve deeper into the investment opportunities in Indonesia, and to promote cooperative dialogue between the various stakeholders, interested in investing in Indonesia and promoting infrastructure development in Indonesia.
The two-day IIIF gave a truly unique and crucial opportunity to gather and promote sound dialogue between different stakeholders, all interested in furthering Indonesia’s development. The IIIF has also put Indonesia more into the radar of potential investors in Europe, especially in UK.