Friday, January 14, 2005
Smart investments
SEATTLE POST-INTELLIGENCER EDITORIAL BOARD
State lawmakers sometimes search for ways to help agriculture, a
vital part of Washington's economy. They ought to look at a cause
Sen. Patty Murray and other members of Congress from Washington have
championed with potentially big rewards for farmers, consumers and
the environment.
Among $17 million for state agriculture research and promotion in
the recent federal budget was a small but significant amount for organic
crops research and education. Some $360,000 will go to Washington
State University's Center for Sustaining Agriculture and Natural Resources.
That's a smart investment. Advocates for organic farmers say that
WSU is doing better than many land-grant universities nationally in
supporting farmers' increasing interest in the high-value products.
But there's certainly more that could be done with greater state
support. The Bellingham-based Washington Sustainable Food & Farming
Network, PCC Natural Markets and others are backing an effort to win
up to $4 million in new state support for a comprehensive WSU program
on organic and biologically intensive agriculture.
WSU is putting considerable budget emphasis on research involving
genetically modified crops. At the same time, legislators ought to
consider spurring organic work. Amid rapid changes for farmers, balancing
between high-tech and traditional methods makes sense.
********************
Indonesia woos more foreign direct investments in infrastructure
By Melanie Yip, Radio Singapore International
First broadcast: 12 Jan 2005
The Indonesia government hopes to set an infrastructure investment
target of about 75 billion US Dollars within the next five years.
This according the Coordinating Minister for the economy, Abu Rizal
Bakri.
Mr Bakri was speaking at a media conference organized by the International
Enterprise, or I-E Singapore today.
Melanie Yip with more in this report.
Indonesia's Coordinating Minister for the Economy, Abu Rizal Bakri
on the government's plans to improve the country's infrastructure.
AB: The Indonesian government needs a lot of infrastructure. And
we are very much realistic because we understand that we are not able
to fund the development entirely through the government's own pocket,
as well as the Indonesian private sector. So therefore, we would like
to invite all the investors around the world to invest in Indonesia's
infrastructure.
Mr Bakri also outlined Indonesia's infrastructure development target
in the short term.
AB: The total amount of money we need in ten years time is US$150
billion, in which US$75 billion should be invested in infrastructural
projects within the next five years. And out of the US$75 billion,
20 percent will be financed by the Indonesian government, and another
20 percent by the Indonesian private sector. The bulk of 60 percent
should be made by private investors.
In the past, foreign investment restrictions provided a big stumbling
block within Indonesia. However, an investment initiative led by President
Susilo Bambang Yudhoyono has helped to place Indonesia on par with
competing nations like China and India.
AB: We realized that there was always a stumbling block to development
and infrastructure in Indonesia, therefore it was considered very
slow compared to the infrastructure development in other countries,
for instance, China and India. Now, Indonesia would like to see that
the next few years of development be smooth, as have been in the last
few years.
In its efforts to ensure a smooth course of infrastructure development,
the Indonesian government and private sector have also discussed on
removing the trade stumbling blocks.
AB: So it seems the stumbling blocks are the regulations that did
not permit the investors to move rapidly towards infrastructure and
government projects. The Indonesian government has discussed with
the Indonesian private sector, and to the Chambers of Commerce &
Industry. We found 14 new decree, both the President himself, and
the legislation, as well as the government legislation, or what we
call PP will be issued within this week, all on road building, land
acquisition, on the power section generators and on the gas transmissions.
The change in legislation shows the Indonesian government's commitment
to inviting foreign investors.
AB: So the Indonesian government has shown its commitment. We are
very serious in inviting investors to Indonesia, both Indonesia domestic,
as well as the foreign investors to come to our country to invest
in the infrastructure projects. We are going to have an initial 91
projects offered, worth about US$22 billion offered to the private
sectors. On top of that, there are other government projects that
private sectors are interested in supplying to the projects. On the
other hand, the projects that we offer will be commercially viable,
some have 23% rate of return, others may have 17-18% rate of returns,
which is rather attractive.
Mr Bakri also outlined some of the important sectors in Indonesia's
economic development roadmap.
AB: We need the understanding from the Indonesian people that we
need these projects and we would like these projects for the benefit
of the Indonesian people. Indonesian government will also focus on
agriculture because 55% of the Indonesian population work in the agricultural
sector. So we are going to move forward to do that. And also, infrastructure
for the agriculture will also be made by the government. On the difference
between the infrastructure and commercially viable infrastructure
for the private sectors, the Indonesia government will ensure that
the infrastructure investments will be commercially viable.
Another area of concern was Aceh, which was one of the areas hardest
hit by the quake and tsunami devastation. Mr Bakri also explained
the government's decision to move ahead with the investment roadmap
despite the tsunami tragedy.
AB: Even though we are working on Aceh very seriously, it doesn't
mean that we are going to forget about all the development plans in
Indonesia, because Aceh is only a small part of Indonesia. Yes, there
are big problems in Aceh, we are going to solve the problems in Aceh.
On the other hand, we are going forward with our plans, our five year
development plan for all of Indonesia. There has to be a plan that
will make Aceh's redevelopment an integral part of Indonesia's development
plan. - RSI