RGE Director Anderson Tanoto has recently been interviewed by CNBC to talk about the improving perspectives on future progress in Indonesia, as outlined at the recent World Economic Forum.
Taking a positive approach towards the current state of the country’s infrastructure, economy and efforts for attracting foreign continuously expanding local communities, Mr. Tanoto has emphasized the goals the country has already achieved, while talking about future plans for industry expansion.
One of the most important aspects that relate to both the well-being of the people in the area and the smooth operation of potential investors has to do with infrastructural growth.
The local government has been successful in putting into motion certain elements of growth, culminating with their vision of 35,000MW in terms of electricity production in the next few years. Mr. Tanoto has also pointed out that the RGE Group and their partners in the industry sector have already managed to build more than 3,000 km of roads in rural areas, where new and improved roads are extremely important.
He also stated that, while the prospect of building thousands of kilometers of roads and improving the electric grid can seem difficult at first, only the first steps are actually a problem. Sustainable infrastructural progress, however, backed by both industry and government leaders, have the possibility to turn these visions into reality within the next 3-7 years.
The Political Agenda in Indonesia
When it comes to politics, the WEF has proven that the Indonesian government and President Jokowi have the best intention for the country’s future growth, both in terms of building better infrastructure and addressing all the other challenges that people are facing today.
According to Anderson Tanoto, the situation is actually much more promising than most people would admit; as he has stated during the interview, “the politics in Indonesia have to be seen from the ground up.” Despite challenges related to the economy and infrastructure, confidence in the area is quite high and strong changes are expected, as many of the political figures currently in the government are younger individuals in their 30s and 40s.
The first concrete proof of the remarkable potential of the country is expected to be realized in just a few years, as the Indonesian economy holds strong and the government is willing to set changes in place that will set in motion the initiative for reaching the necessary sustainable goals.
Commodities and the Economy
Mr. Tanoto has emphasized the fact that any temporary setbacks when it comes to commodities and the local economy need to be viewed as cyclical and that potential investors will gain far more by looking at the overall picture for the next 3 years.
Also, while the currency is fluctuating, risk management plans are in place, as groups like RGE have a powerful strategy for managing loans in both domestic and foreign currencies; the company also has strong treasury teams operating in Jakarta, Singapore and Hong Kong.
As Anderson Tanoto finally pointed out, the demographics and macro-economic environment in Indonesia show a promising future and prospects are quite high for the next few years.