CAPITALIZING ON OPPORTUNITIES OFFERED BY OBOR INITIATIVES by Fardah

Jakarta, June 20, 2017 (Antara) - A good connectivity is crucial for Indonesia, a huge country whose distance between the westernmost part of the archipelago and the easternmost is equal to the distance between London and Dubai or Los Angeles and New York.

         The vast Indonesian archipelago and its waters are rich in natural resources and tourist spots, but many of its outermost and remote regions are underdeveloped due to the lack of infrastructure and facilities.

         To improve connectivity and to address the underdevelopment in the country, the Joko Widodo (Jokowi) administration has accelerated infrastructure development in various regions, particularly in remote and eastern regions of Indonesia.

         The government has planned to build, among other things, airports, seaports, and roads.

          While speaking in a Belt and Road Forum for International Cooperation held in Beijing, China, last May, Jokowi explained that the country's potentials are yet to be exploited optimally due to the lack of adequate infrastructure.

          "Hence, the biggest infrastructure development in the country's history is now going on," he pointed out.

          Addressing 28 heads of state and government, as well as chiefs of international organizations at the meeting, Jokowi stated that Indonesia, as the world's largest maritime economic zone located between the Indian and Pacific Oceans, has a strategic and important role to play.

        He lauded the One Belt, One Road (OBOR) initiative and invited the leaders attending the Beijing forum to participate in the Indonesian development programs.

        "Hence, we wish to invite you all to also connect your shipping lines and flights to the two entry gates in the western and northern parts of Indonesia. I believe that the world needs concrete projects at present," he affirmed.

        Jokowi expressed belief that the vision of international connectivity and cooperation under the OBOR initiative would be materialized.

         For this purpose, the participating countries need to synergize policies and strengthen connectivity. 
     During the opening of the forum, organized by the Chinese government from May 14 to 16, Chinese President Xi Jinping explained that the forum was a renewal of the Silk Road and Maritime Belt initiatives for countries in the Indian Ocean.

          Jinping further stated that more inclusive cooperation has to be supported by strong connectivity among the member countries. 
    OBOR was first unveiled by Jinping in 2013, with the aim of connecting 65 countries across three continents to China. The initiative seeks to promote economic cooperation among countries along the land and sea routes.

        The initiative aims to connect Asia, Africa, and Europe over land through Europe-Asia continental roads, and sea routes through South China Sea and Indian Ocean.

         The ambitious plan aims to connect an estimated 4.4 billion people across these regions through building infrastructure and boosting financial and trade ties for the countries that lie along the routes.

         Connectivity is core to the OBOR initiative, with promising benefits for many countries.

        In Southeast Asia, China wants to develop infrastructure along the 21st Century Maritime Silk Road to improve connectivity.

        Indonesia hoped that the OBOR initiative would help the country implement infrastructure development programs and improve national connectivity.

        Foreign Affairs Minister Retno LP Marsudi believed that the OBOR initiative would also be able to support the Master Plan on Association of Southeast Asian Nations (ASEAN) Connectivity 2015 and contribute to the ASEAN Community's welfare as well as global peace, security, and stability.

          Meanwhile, Sumit Dutta, the president director of PT Bank HSBC Indonesia, has encouraged Indonesia to capitalize on the bigger opportunities offered by the OBOR initiative that promotes infrastructure development in various sectors.

       "Indonesia is one of the Asian countries that has a promising economic potential," he remarked in a statement.

        Based on a study conducted by HSBC Global Research, the improving welfare in the ASEAN has triggered an increase in the demand for housing, schools, hospitals, railways, airports, and other infrastructure facilities.

        To meet the needs, six ASEAN member countries having the highest economic growth, namely Indonesia, Malaysia, the Philippines, Singapore, Thailand, and Vietnam, are estimated to invest some US$2.1 trillion until 2030, according to an analysis carried out by HSBC.

         In accordance with the ambitious OBOR initiated by China, collaboration with regard to the development plan has the potential to trigger investment and boost construction activities.

         The projects targeted under the initiative are closely related to infrastructure construction, such as in the areas of transportation and energy, in which the Chinese companies have a proven track record in their country.   
  In July, PT Bank HSBC Indonesia had estimated that ASEAN would face a gap in development funding amounting to $1.2 trillion until 2030.

        Countries having the largest gap in development funding are Indonesia, at $700 billion; and Thailand, at $150 billion.  ***3***
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(T.F001/A/BESSR/A. Abdussalam) 21-06-2017