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NEW UPDATES Asean Affairs  5 June 2015  

U.S. Companies Confer with Government of Indonesia on Infrastructure Development

(Jakarta) May 4, 2015 – Today a delegation of 10 member companies of the US-ASEAN Business Council’s Infrastructure Committee will begin its inaugural Infrastructure Industry Mission to Indonesia.  The delegation will discuss opportunities for U.S. firms to leverage their industry leading products, services and technologies to do business in Indonesia’s rapidly expanding infrastructure development space. President Joko Widodo’s administration has identified the strategic importance of addressing Indonesia’s hard and soft infrastructure deficits, to support both broader based economic growth and industrial led economic development in Indonesia in the coming years.  Since his Presidential candidacy he has stressed the need to upgrade Indonesia’s infrastructure to lower costs in Indonesia’s export ecosystem for SME’s and increase the competitiveness of the manufacturing sector to attract both foreign and domestic investment. Just after taking office, he reduced the country’s long-standing fuel subsidy to free up fiscal funds for large-scale infrastructure projects.  The delegation, led by the Council’s Vice President for Policy, Marc Mealy, will meet with both business leaders and senior officials at many of the government ministries and state owned enterprises involved in the management of key projects.

“When Indonesian partners search for the firms that can best contribute to the development of Indonesia’s energy, rail, roads, airports and seaports on a high-quality, competitive-life cycle cost basis, it need look no further than the types of U.S. firms visiting Jakarta for this mission,” said Marc Mealy.  “U.S. firms such as Caterpillar and GE have long demonstrated that they bring an unmatched combination of quality, durability and long-term value in their products and technologies to infrastructure projects around the world.  After meeting with President Jokowi on May 4th and noting his government’s desire to increase efficiencies and get more value for money out of its infrastructure budget, we look forward to continuing to work Indonesia officials on how U.S. companies as equipment or services suppliers, consortia members, or in public-private partnership (PPP’s) can better compete for projects that will serve as catalysts for processes of economic transformation in the archipelago and unlock new sources of growth for Indonesian businesses with the formation of the AEC.”

The delegation will meet with officials from the U.S. Departments of State and Commerce as well as the Millennium Challenge Corporation at U.S. Embassy Jakarta prior to heading to a series of meetings with Government of Indonesia officials at the Indonesian Investment Coordinating Board (BKPM).  At BKPM, the delegation will meet with Deputy Chairman for Investment Promotion of BKPM, Himawan Hariyoga, as well as senior officials from the State Ministry of National Development Planning (Bappenas), the Coordinating Ministry for Economic Affairs, PT Sarana, BPJT, BPPSPAM, ESDM, PT PLN, and the Indonesia Infrastructure Guarantee Fund (PT PII).The delegation will end the mission with meetings with Hediyanto W. Husaini, the Director General of Highways for the Ministry of Public Works and Public Housing, Sahala Gaol Special Staff to the Minister of State-Owned Enterprises, and Mr. Jarman, Director General of Electricity, Ministry of Energy and Mineral Resources.

The one-day mission presents a broad assortment of Infrastructure Committee members with opportunities to holistically engage Indonesia officials overseeing nearly every facet of Indonesia’s infrastructure development.  Companies participating on the mission in addition to Infrastructure Committee Chair Caterpillar and Vice Chair GE include ACE, Autodesk, Bechtel, Black & Veatch, Cisco, KPMG, Moody’s, Rio Tinto and Trakindo.

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