ASEAN KEY DESTINATIONS
Banten industrial estate to lure Australian investors
A joint venture between Indonesia and Australia is expected to draw in big-time investors from the latter country to build an integrated industrial estate-cum-seaport project located close to Soekarno-Hatta International Airport, officials have said.
"This is not a project that's going to stop. It will continue to grow. It's an industrial estate with a seaport, 770 hectares to begin with, and on the other side of the river, there's another 800 hectares," Australia Indonesia Business Council (AIBC) president Debnath Guharoy said in Jakarta, referring to the project expected to be built in Kohod, at the mouth of the Cisadane River, in the province of Banten.
Guharoy said the industrial estate, which would also feature three gas power plants with a capacity of 450 MW each, is Australia's first attempt at a public private partnership scheme in infrastructure in Indonesia.
The feasibility study is expected to begin before the end of October and is expected to finish within six to nine months, said Guharoy.
Four Australian companies have expressed a commitment, namely ANZ, Infrastructure Australia, Leighton and PwC.
The head of the Investment Coordinating Board and Integrated Services (BKPMPT) in Banten Babar Suharso said the project was expected to bring in investment of at least US$1.3 billion over the next five years.
"Investment is the backbone of local development," Babar said, adding that both foreign and domestic investments are crucially important.
The building of the industrial estate will be a cooperation between Banten-owned enterprise Banten Global Development and the AIBC.
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