The Financial Services Authority (OJK) stated that the government has high hopes that the capital market industry can contribute to the development of infrastructure in the country with long-term funding.
“We have a strong foundation to support the government in infrastructure development. We will be more active in exploring capital market by applying several programs,” OJKs Chief Executive Officer of Capital Market, Nurhaida, said here on Tuesday.
She is optimistic that the capital market is able to contribute significantly to the development of national infrastructure, especially since Indonesia has achieved investment grade rating from international agencies such as Standard & Poors (S & P), Moodys Investors Service and Fitch Ratings.
“Investment grade rating that we get shows that Indonesia has good potentials. We must maintain the momentum,” she said.
In order to support infrastructure development, she added that OJK is conducting a study to issue new investment instruments, including infrastructure fund, infrastructure bond and project bond. Those instruments at the same time provide an alternative for investors in investing.
Nurhaida explained that infrastructure fund is intended to provide alternative funding for infrastructure development in Indonesia through securitization of infrastructure assets. The product is a medium to raise funds from investors.
Infrastructure fund, she added, is not much different from Limited Investment Fund, in which the maximum number of parties who invest is 50.
“Meanwhile, the number of infrastructure fund participating side can be more,” she noted, adding that the regulation on infrastructure fund products is being prepared by OJK. In the near future, OJKs regulations on the product will be issued.
Nurhaida explained that project bond is a bond with source of payment derived from a projects revenue, while infrastructure bond is an infrastructure-based bond.
“The project bond and infrastructure bond rules are in process. We are expecting to be completed soon,” she said.