BRI will bring billions of dollars investment in Indonesia, minister

Indonesia has a very positive and encouraging outlook of China's ambitious Belt and Road Initiative (BRI). It has forecasted multibillion-dollar investments by Chinese firms in four regions earmarked as future growth drivers.

Tom Lembong, Indonesia's Investment Minister said more professionals should be involved to structure fair and financially viable deals to boost global trade and connectivity. Lemong's Indonesian Investment Coordinating Board (BKPM) signed an agreement with Chinese investment bank CICC to scruntinise new belt and road investments into Indonesia. "The ultimate vindication of the BRI's success is when projects can tap capital markets. I believe in the next five to 10 years, BRI will stimulate additional investment in probably tens of billions of dollars, and what both sides are trying to ensure now is the quality of investment, not just the quantity."

Indonesia has collaborated with China's BRI for the US$6 billion high-speed rail connecting Jakarta to the city of Bandung. However, the rail link has been plagued by land acquisition and other delays since its launch two years ago. Nonetheless, Indonesia, which is regarded as Southeast Asia's largest economy, is aiming to channel belt and road investments into four 'economic corridors' - North Sumatra, North Kalimantan, North Sulawesi and Bali. Lembong said the four zones overlapped with the maritime corridors identified in the initiative and would reduce project 'duplication or lack of synchronization that could lead to waste and poor quality outcomes.'