Jakarta, June 9, 2015 – Indonesia’s Chamber of of Commerce is committed on working with the government towards achieving ‘green’ and sustainable development goals.
‘We in the private sector fully support the development goals for ‘green’ infrastructure. The challenge to meet the government’s infrastructure goals is enormous, and will require the full partnership of and investments from the private sector, domestic and international, as well as the participation of multilateral organizations,” said Suryo Bambang Sulisto, Chair of the Indonesian Chamber of Commerce.
This commitment was reaffirmed by KADIN Chairman Sulisto at the the opening of the 2015 Indonesia Green Infrastructure Summit, which runs from June 9 to June 10, 2015. The meetings, hosted by KADIN with the support of the World Bank Group and the Japan International Cooperation Agency, will discuss possible concrete steps that can be undertaken as part of Indonesia’s medium-term development plan, or RPJMN.
After its opening by Indonesia’s Vice President M. Jusuf Kalla, World Bank Group Managing Director Sri Mulyani Indrawati explained that development with a short-term outlook will be counter-productive and impact Indonesia’s growth potential. “If we want to succeed in ending poverty, we cannot rely on growth alone unless it is inclusive and environmentally sustainable. To put it simply: success will depend on how a country will grow, not just by how much,” said Sri Mulyani.
Indonesia has many opportunities for ‘green’ development. In the transportation sector, for example, improving connectivity in Indonesia will require 2000 kilometers of toll-roads, more than 3200 kilometers of railway, 15 airports, and 24 new ports. One project that manifests the ‘green growth’ vision is Teluk Lamong Port, 15 kilometers north of Tanjung Perak Port in Surabaya. President Joko Widodo will soon inaugurate this port, the first in Indonesia to install and use a rail system for container traffic.
The Indonesia Investment Coordinating Board estimates that the potential for ‘green’ infrastructure for foreign and domestic investors will increase by about 20 percent up to the year 2019. That is why incentives for ‘green’ development are essential to ensure that the hoped-for investment growth will take place.
Policy-makers from President Widodo’s government took part in the conference, alongside key industry players from Indonesia and overseas. The topics discussed include: spatial planning and land use, efforts for 35,000 megawatts of sustainable power generation, promotion of a ‘blue’ economy and support for Indonesia as a global maritime powerhouse, sustainable infrastructure financing, ‘green’ public transport options, and the role of State-owned enterprises in implementing ‘green’ development plans.
According to Trade Minister Rachmat Gobel, the government’s infrastructure program will require more than 5 trillion rupiah, or 1.1 trillion rupiah a year. “The partnership between the government and the private sector will encourage foreign investors to invest in Indonesia,” he said.
The annual national meeting for KADIN’s Infrastructure, Environment and Sustainable Development division also takes place at the Summit, where provincial chapters will contribute their views on infrastructure-related and environment-related programs in the provinces.
Several Ministers attended the event, included Minister for Spatial Planning and Agraria, Ferry Mursyidan Baldan, Minister for Communication and Information Rudiantara, and Minister for Public Work and Public Housing Basuki Hadimoeljono. The private sector and State-owned enterprises are represented by Fumio Otani from Toshiba, Sinthya Roesly from the Indonesia Infrastructure Guarantee Fund, Taufik Ahmad from ConocoPhillipes Indonesia, Hironobu Shikama from IHI Corporation, Tom Nageli from AT International, and Kiswodarman from Adhi Karya.
According to the Indonesia Investment Coordination Board, or BKPM, between 2010 and 2014, foreign investors contributed some USD $26,81 billion towards ‘green’ infrastructure, while domestic investors contributed rp. 139 trillion.