On Monday 27 November, the Indonesian Embassy and UK-ASEAN Business Council hosted lunch for H.E. Budi Karya Sumadi, Minister of Transportation of Indonesia, UKABC partners, and senior figures from UK companies interested in Indonesia’s infrastructure projects.

Minister Sumadi gave a presentation noting that Transportation development is a high priority in President Widodo’s government. Three projects were highlighted 1) Kuala Tanjung International Hub Port, 2) Kualanamu International Airport and 3) Labuan Bajo Development.

Richard Graham MP moderated the Q&A highlighting that the UK can provide expertise in Indonesia’s infrastructure projects. Richard also noted the role of raising capital and highlighted the Komodo Bonds at the London Stock Exchange, which for the first time ever will have an Indonesian State-Owned Enterprise issue bonds.

When asked how finance and engineering will be linked to make sure large-scale projects are both bankable and deliverable, the Minister replied by saying PPP is a way to ensure that the private sector is engaged. Minister Sumadi noted the government will use its own money to focus on the smaller islands and work with the private sector on the larger projects offering concessions to investors over the 20-30 year period.