Maybank Kim Eng Group CEO John Chong said Indonesia's infrastructure projects would have to look to the capital market for financing, in particular bonds and sukuk (Islamic bonds), as an alternative to bank loans.
"A deep rupiah bond market will enable project sponsors to seek longer-term fixed-rate funding to provide certainty to their financing cost.
It will also match the rupiah [revenues] received from these projects," Chong
said at Maybank's
Invest ASEAN Indonesia conference on Tuesday.
The government has pledged to drive growth further by increasing infrastructure spending by 8 percent to Rp 314 trillion (US$22.06 billion) from Rp 290 trillion in its proposed 2016 state budget.
said Maybank Group
and Maybank Kim Eng had, over the past few years, been actively helping to raise funds from the capital market as well as providing syndicated loans for various infrastructure projects in Indonesia, such as power plants, toll roads and seaports.