JAKARTA. The World Bank is calling on Indonesia to improve its investment climate to lure more investment into infrastructure development. World Bank Group president Jim Yong Kim advised the government to provide a clearer calculation of risks and returns on investment. Furthermore, it should only offer project guarantees where necessary, so that they did not function as a subsidy. "By using that principle, you can maximize the government’s support, so you can distribute the budget to the other projects. Tools like the guarantee fund cannot be used as a way of subsidizing private-sector investment," Kim said at the Indonesia Infrastructure Finance Forum in Jakarta on Tuesday.
World Bank advises Indonesia to push for reforms
JAKARTA. The World Bank is calling on Indonesia to improve its investment climate to lure more investment into infrastructure development. World Bank Group president Jim Yong Kim advised the government to provide a clearer calculation of risks and returns on investment. Furthermore, it should only offer project guarantees where necessary, so that they did not function as a subsidy. "By using that principle, you can maximize the government’s support, so you can distribute the budget to the other projects. Tools like the guarantee fund cannot be used as a way of subsidizing private-sector investment," Kim said at the Indonesia Infrastructure Finance Forum in Jakarta on Tuesday.