RI needs Rp147 trillion to develop infrastructure per year

Antara News, Thursday, November 26, 2009 11:14 WIB

Industry Minister, MS Hidayat. (ANTARA)Jakarta,(ANTARA News) - Indonesia`s infrastructure sector needs an annual investment of Rp1,417.191 trillion to achieve an industrial growth target of 8.95 percent by 2014, a minister said.

"During the 2010-2014 period we hope there will be a shift in the distribution of industries to outside Java," Industry Minister MS Hidayat said at a hearing with the House of Representatives Commission VI for trade, industry, investment, cooperatives, small and medium businesses and state firms here on Wednesday.

The share of Java`s industrial growth which is projected at 75 percent in 2009 will fall to 62.79 percent in the next five years, he said.

"Hopefully, the share of industries outside Java will increase to 27.19 percent in 2014 from 25 percent in 2009," he said.

The Industry Ministry has projected investment needs in the food, beverage and tobacco sectors at Rp34.178 trillion in 2010 and Rp220.722 trillion until 2014.

The government has set the industrial growth target at 6.64 percent for 2010 and 10.4 percent for 2014, he said.

Investment needs in the textile, leather product and footwear industries are expected to reach Rp9.765 trillion in 2010 and Rp63.397 trillion until 2014, he said.

The investment will contribute 2.15 percent to the growth of textile, leather product and footwear industries in 2010 and 5.6 percent in 2014, he said.

Wood and forestry product industries are projected to grow by 1.75 percent in 2010 and 3.7 percent in 2014. Therefore, the industries will need an investment of Rp4.139 trillion in 2010 and Rp27.209 trillion until 2014, he said.

Paper and print product industries are expected to grow by 4.2 percent in 2010 with investment need estimated at Rp4.776 trillion. In 2014 the industries are projected to grow by 5.5 percent with investment need expected to reach Rp33.286 trillion during the 2010-2014 period, he said.