Opening IDB forum, Vice President urges direct investment

Nusa Dua, Bali-wapresri.go.id When inaugurating the opening of the 3rd Islamic Development Bank (IDB) Member Countries Sovereign Investments Forum at the Bali International Convention Center in Nusa Dua, Bali on Monday (April 10), Vice President Jusuf Kalla urged direct investment in Indonesia by investors from IDB member countries.

“We need direct investment which is more syar’i (based on sharia law). There are now more investment in the form of stocks, bonds, and the like,” said the Vice President.

The Vice President then stressed the importance of cooperation especially among IDB member countries in a world that continues to change rapidly and has an impact on the global economic downturn.

“Countries began to change their mind and economic approach. The patterns of investment are also changing. Therefore, we need a forum like this one that discusses these changes and how to respond to them,” he said.

The Vice President also stated, investments should not just focus on how to gain profit, but also how to bring prosperity in IDB member countries.

This, he added, is important to prevent conflicts in a state or inter-state conflicts many of which are fueled by poverty.

Furthermore, the Vice President said, if the Islamic countries could unite and work together, the progress in the Islamic world would be easily achieved.

“Hopefully, there will be a joint investment (among IDB member countries). Together we will be able to bring prosperity,” he affirmed.

On that occasion, the Vice President also appreciated the good cooperation that has long existed between IDB and the government of Indonesia, especially in the areas of infrastructure development and education.

“We appreciate IDB investment in Indonesia, which includes 52% in infrastructure and 40% in education,” he said.

Concluding his speech, the Vice President assured Sovereign Wealth Fund (SWF) or donors from IDB member countries that Indonesia has huge economic potentials, one of which is the large number of population that could potentially become a promising market and supplier of labors at the same time. Moreover, he added, the conditions in the country is relatively stable.

“I have always underscored that politics in Indonesia is relatively stable, with democracy. There may be turmoil, but it is relatively small,” he said.

Earlier, in the same forum, Finance Minister Sri Mulyani Indrawati said the Indonesian government has launched 14 major economic policy package to support a favorable investment climate in the country.

Today, he continued, Indonesia has 225 priority infrastructure projects requiring funds more than Rp4.900triliun which is not likely to be taken entirely from the state or local budget.

“To that end, we invite SWF to participate in the financing of these projects through public-private partnership scheme,” said Sri Mulyani.

Meanwhile, IDB President Dr. Bandar bin Muhammad Hamzah Hajjar stated in his speech that the infrastructure need of IDB member countries ranges between 200 to 220 billion US dollars per year.

Infrastructure development, according to Dr. Bandar, is important to provide more jobs, improve productivity, encourage growth, and help IDB member countries achieve sustainable development goals (SDGs).

At the forum, the agreement of IDB financing to PT Sarana Multi Infrastruktur (PT SMI) worth US $ 1 billion (USD 13,3triliun) was also signed by the IDB President and CEO of PT SMI Emma Sri Martini. PT SMI is a state-owned enterprise under the management of the Ministry of Finance that focuses on the field of infrastructure financing.

IDB Member Countries Sovereign Investment Forum is an annual forum for SWF to explore investment opportunities in 57 IDB member countries, including Indonesia. This year, the forum is attended by over 300 delegates, many of which are led directly by the finance ministers of IDB member countries.