Press Release

INVESTMENT COORDINATING BOARD

“INVESTMENT READINESS OF INFRASTRUCTURE AND ENERGY”

Grand City Convention Center, Surabaya, 11 October 2010

Surabaya, October 11 2010 – The government has been attempting to increase the investment flow. One of the attempts is by involving a number of institutions in Indonesia. Regional government and the technical ministries hold such a crucial role in attracting the investors. Those facts have triggered Investment Coordinating Board (BKPM) to hold Regional Investment Potential Expo.

            This is going to be an eight event and is a continual of a similar promotinal event held in Bandung on 19-21 July 2010. Surabaya, as the capital of East Java, is also known as one of a vast developing business district among the provinces in Indonesia. Suramadu Bridge, which was inaugurated by President SBY a while ago, has become one of the icons in the development of infrastructure in Indonesia.

            Chairman of BKPM, Gita Wirjawan, in several occasions, stated how important the role of infrastructure for the growth of investment which has reached USD 18 billion this year and USD 50 billion by 2015. It is expected that the infrastructure would be the main factor in reaching the target.

            ”With the absence of insignificant development in infrastructure, the complaints regarding the obstacles to invest in Indonesia will rely on those basic aspects” he mentioned.

            To boost the acceleration of Indonesia’s infrastructure development, BKPM has been directly assigned by the government to become the basis in offering infrastructure projects with the agreement scheme of government and private corporations to the investors. For initial stages, there are 5 infrastructure projects worth of USD 4,44 billion.

These five projects are Tanah Ampo Port, Tampaksiring, Bali, worth of USD 30 million (est.); railway projects with the route of Sokearno hatta airport to Manggarai, Jakarta, worth of USD 735 million (est.), Air Generated Electricity Projects in Central Java, worth of USD 3 billion (est.), highway road project of Medan Baru Kuala Namu Airport worth of USD 475 million (est.) and umbulan water projet in Pasuruan, East Java, worth of USD 200 million (est.).

”For the Umbulan Water Project, there have been several interested investors. The Spanish investor came to our previous Regional Expo has also expressed his interest in the project” Chairman explained.

In regards to the energy, its supply for investment is highly required. With the richness in natural resources, one of the ways to increase energy supply is to support what have become the main priorities of the government.

The event will be opened by Chairman of BKPM along with the East Java Governor, Mr. Soekarwo. The expo itself will be held parallel up to 13 October 2010 and will feature feature exhibitions from the provincial investment agencies.

Each region will provide information regarding the potentials of their province in order to attract investors. The purpose of this event is to encourage the active roles of the regions in carrying out investment promotional events. The opportunities offered are in real projects to ease the investors in making considerations and business analysis.

However, in this GPID event, projects from other provinces will also be featured. The detailed infromation regarding the projects will also be given in the one on one meeting which will be held after the seminar.