BOGOR (BINA MARGA) - Director General of Highways of the Ministry of PUPR, Arie Setiadi Moerwanto attended a consolidation meeting with the Ministry of Foreign Affairs to discuss Indonesia's potential involvement in infrastructure projects abroad, in Bogor, Thursday (4/5) night. Also present was Director General Muhammad Anshor and his staff.

This meeting aims to achieve synergy between institutions that support the performance of Indonesian diplomacy and discuss opportunities and obstacles to economic cooperation in the American and European regions. Anshor also said that his party often gets questions about governance and the potential for investment in infrastructure abroad.

"There are so many requests that we invest, for infrastructure as well. These things like this also many we do not have an answer (related to requests from neighboring countries)," said Anshor. For example, according to Anshor several countries such as Georgia and Suriname want cooperation in infrastructure.

Regarding foreign investment, the Director General of Highways said that there are two sides that need attention: the government wants to sell investment abroad and also attract investment into the country. Indonesia needs investment from abroad because currently the government is only able to provide approximately 20% of the infrastructure budget needs. Even so the Infrastructure Competitiveness Index shows year-on-year increases.

"We are encouraged to look for financial innovations to pursue the needs of the infrastructure budget," explained Arie. One of the things that has been done is the Availability Payment scheme where investors (for example contractors) finance the financing that will be repaid by the government within 10 to 20 years. According to Arie, this scheme is in demand because it is guaranteed by the government directly. "Now how do you attract investors from abroad because the interest rates are lower," he said.

In addition, there are financial innovations with Tax Amnesty but these investors need good investment certainty. "This is also a challenge, they (TA investors) only want to enter toll road projects that have shown good results. Because the risk of building this toll road is also great. We need to convince them. So this is our weakness and strength, "he explained.

As said earlier, the government also wants to participate in infrastructure abroad. At present, the majority of Indonesia's role in infrastructure projects abroad is taken over by the National Construction Service Business Actors (Contractors). Several national construction service business entities (BUJKN) have expanded overseas and the majority are state-owned enterprises.

The BUJKN are, PT Wijaya Karya, PT Housing Development, PT Adhi Karya, PT Waskita Karya, PT Citra Group of Indonesia. These contractors have worked in Myanmar, Malaysia, the Philippines, Timor Leste, Saudi Arabia, United Arab Emirates and Algeria.

Arie said, the main challenges faced by Indonesian contractors to be able to compete in foreign infrastructure could be formulated in several aspects, namely aspects of legality, marketing, production and finance.

"We ask for the help of ladies and gentlemen (at the Ministry of Foreign Affairs), the first is the matter of legality because some countries require business entities to open branches in the local country and also associate with local state business entities," he explained.

Besides that, BU actively participates in construction exhibitions both domestically and abroad. BU formed an MoU with local state partners. Then there is the request for a Certificate of Expertise in Human Resources. Materials and equipment that have local country quality certificates. Must have an internationally recognized quality and safety management system.

From a financial aspect, PCs must have a Guarantor Bank which must be issued by a local bank. "Different taxation schemes in each country are different. Surely we need guidance (by the Foreign Ministry) on this matter, "explained Arie. (ian)