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Qatar Investment Board is to team up with state investment
company Danareksa to tap into the country's infrastructure projects.
Danareksa president director Lin Che Wei said Friday that Danareksa and
the Qatar Investment Board had signed a memorandum of understanding on
the establishment of a joint venture to handle their joint investment
in road and power projects.
Without giving the actual value of the funds which would be spent for
the road and power plant projects, Lin said that the total amount would
reach hundreds of millions of dollars.
"It involves hundreds of millions, but I cannot give you the exact
figures just yet. But I can tell you that Danareksa will hold a
significant share in the joint venture," he added.
Indonesia is trying to ease rules to attract foreign investment in
infrastructure and create jobs. The government will, for example, set
aside Rp 2 trillion in its 2007 budget to guarantee investment in
infrastructure projects, National Planning Minister Paskah Suzetta has
said.
The government may give investors compensation if demand for a
completed project is lower than what the government had initially
guaranteed, according to a decree by Finance Minister Sri Mulyani
Indrawati released late on June 2.
Lin also said Danareksa had also signed a memorandum of understanding
with the USAID for the establishment of a water fund to help state tap
water companies in the country improve their services to the public.
"Water services have been a huge problem for this country as many of
the state owned water company (PDAM) branches are not performing very
well. This is where we and USAID will step in," Lin said.
"We will make PDAM branches more bankable as the USAID will guarantee
them," he said. "Danareksa can also act as an underwriter if the water
companies want to offer bonds," he added.
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