VIVAnews - The Investment Coordinating Board (BKPM) assumes local financial institutions have not been able to show their capability in funding the development of base transceiver station towers (BTS) for telecommunication operators.
The amount of funds required to build the BTS could be up to IDR70-80 trillion per year.
“We could only get a maximum of IDR2-3 trillion from local funding,“ BKPM Head Gita Wirjawan said at the office of Coordinating Minister for the Economy on Jalan Wahidin in Jakarta today, March 17.
According to her, BKPM observation shows that Indonesia is in need of about 150-200 thousand of BTS for the next 5 to 7 years. For the construction, the companies have to spend IDR1 billion on every tower.
“Now, do we really want to enhance our capacity and coverage?” she said.
She also said if foreign funding will still be limited, telecommunication operators would only rely on domestic funding.
“So far, local funding hasn’t proven to be able to support coverage and capacity enhancement maximally, “ she said.
If foreign parties are allowed to step in, BKPM is optimistic that they will be able to provide the required elements using their unlimited funds.
“If we are aware of the reality and the telecommunication sector will still be restricted, we don’t need to be ambitious to achieve the target in investments,” Wirjawan said.
She went on by saying that BKPM does not set any percentage on how much foreign investments are allowed in the sector. The agency is only expecting the government to provide openness for foreign parties.
“Whether it’s 10,20,45 or 90, it’ll still be a positive thing. It doesn’t have to be minor,” she said.
However, BKPM acknowledges the fact that the institution only considers the issue from a business perspective. When it comes to technicality, BKPM entirely counts on relevant ministries.
“We’re carrying out a task from the president and this investment target is not small. I think the telecommunication sector could contribute by bringing in foreign investments”.
BKPM will later turn to the Coordinating Minister for the Economy and President Susilo Bambang Yudhoyono (SBY) to solve the issue.
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Translated by: Nataya Ermanti
