US$64bn Investment Opportunities in Indonesia for Belt & Road Initiative
On April 13th 2018, US$64bn Investment Opportunities in Indonesia for Belt and Road Initiative Seminar was held in Beijing. Indonesian Coordinating Minister of Maritime Affairs HE Luhut B. Panjaitan presented the investment opportunities during the seminar. Among them, North Kalimantan is expected to attract the most investment, totaling US$26.5bn, followed by North Sumatera, North Sulawesi and Bali with US$17.2bn, US$10.6bn, US$10.3bn respectively. Dissecting by sectors, infrastructures like ports, roads, airports and railways expect to absorb US$21.1bn investments, ranking before energy sector (US$21bn) and industry sector (US$19.3bn).
According to Norman Sze, Deloitte China Belt and Road Service Leader, Deloitte conducted survey among senior management of 166 state-owned enterprises, private enterprises and foreign enterprises in the latest issue of the "Belt & Road" white paper series. Results showed that in the next 3 years, state-owned enterprises' overseas investment is still focusing on key areas along the "Belt & Road", including Southeast Asia, South Asia, West Asia and Africa, with a further increasing trend. Risk, regulation and talent are considered as 3 major challenges in investing overseas.
Soo Earn, Deloitte SEA FAS Leader, Nina Zhou, Deloitte China Business Tax Partner, together with Patrick Fung, Deloitte China Financial Advisory Infrastructure & Capital Program Leader introduced recent developments of Belt and Road Initiative in Indonesia and SEA, key investment considerations and tax highlights in Indonesia as well as any supports from Indonesia Government under its PPP program.
Deloitte has been devoted to supporting the China Belt and Road initiative, and has announced in 2017 a strategic investment of US$40 million to facilitate Chinese companies' business activities along the BRI. Derek Lai, Deloitte Global Leader of Belt and Road Initiative, mentioned during the seminar that Deloitte has put up a dedicated strong BRI team by combing our local team expertise, CSG team as well as our China infrastructure team to support our Chinese clients investing globally, and has already provided well-rounded services to over 100 Chinese companies engaged in BRI projects across the globe.