Indonesia Is Still A Target For International Infrastructure Investment

Illustration. (Photo: Unsplash)

JAKARTA - Indonesia's electricity projects have received a number of awards in several categories by Asia Power rating. One of the award recipients is PLTU Jawa 9 & 10.

This environmentally friendly technology plant received one of the awards in the Coal Project of The Year category and in the field of environmentally friendly technology by carrying out the low-emissions OECD-Class USC CSFPP system.

The award, which was announced last Thursday, November 4, proves that the international community still sees investment in the country as very profitable and an example for the future. Infrastructure projects in Indonesia are still an important foundation for the economic recovery that hit during the pandemic.

Deputy for Investment Climate Development, Ministry of Investment / Investment Coordinating Board (BKPM) Yuliot Tanjung told reporters, Friday, November 5, explaining that the realization of investment for infrastructure needs in 2021 is actually so stretched compared to the previous year. According to him, the government is optimistic that this situation can continue in 2022.

This is in line with the projected increase in total investment next year, which is in the range of 22-30 percent (yoy).

"Because the investment target is increasing, the Kemeninves/BKPM will also be optimistic," he said.

Kemeninves/BKPM noted that in the first quarter of 2021, the realization of foreign-domestic investment reached Rp. 659.4 trillion. This is higher than the realization of investment in the same period the previous year which only reached Rp611.6 trillion.

According to him, the realization of electricity investment itself has been very prominent throughout the current year. Investment in this sector is even included in the largest capital realization in the five sectors.

The details are investment in the housing, industrial and office areas (Rp 88.8 trillion); basic metal industry, metal goods, non-machinery and equipment (Rp 82.7 trillion); transportation, warehouse and telecommunications (Rp 80 trillion); electricity, gas and water (Rp59.4 trillion); and mining (Rp 53.3 trillion).

"So, because in general the investment target for 2022 will increase, investment in many sectors will also increase in all," he said.

Similarly, CORE Indonesia Economist Yusuf Rendy Manilet said that in 2022 investors are expected to target several strategic infrastructures.

"As for other infrastructure, there is an opportunity for foreign investors to be interested in financing several National Strategy Projects (PSN). Such as energy (sector), toll roads, or dams," explained Rendy.

Just for information, the electricity infrastructure investment sector, Indonesia has several times received international appreciation. Some time ago IJ Global and ALB Thomson REUTERS won the Java 9 & 10 Project as the project with the best project financing in the energy sector. In fact, in terms of the funding agreement, IJ Global assesses that this technologically advanced and environmentally friendly power plant project is the right model for power plants in Indonesia.

"This Indonesian company has succeeded in adapting the financing pattern as done in the Middle East. This is a very good thing, and can be a model for power plants in Indonesia in the future," said DBS Project Funding Advisor Subash Narayanan, quoted from the IJ Global Award announcement page. .

Besides being given Asian Power for the best Indonesian Environment Upgrade category due to the use of environmentally friendly technology, domestically, PLTU Jawa 9 & 10 also received the same award. The award for environmental care is given by the Indonesia Green Award (IGA). Deputy Minister of Environment and Forestry Alue Dohong appreciated the environmental care program outlined at the IGA Award.