Indonesia presidential candidate Prabowo wants big infrastru

Bareksa.com -  The senior economic adviser to Indonesian presidential candidate Prabowo Subianto said on Friday a government led by him would spend nearly $60 billion a year on infrastructure, and find the money to do that by "revamping" the country's tax collection.

Hashim Djojohadikusumo, a businessman who is Prabowo's brother, also told the Jakarta Foreign Correspondents Club that contrary to a common perception, Prabowo is not a staunch nationalist who is cool to foreign investment.

"We welcome foreign investment. In fact, the more the merrier. The Chinese government is considering investing $100 billion in the next five years in Indonesia," Hashim said.

On July 9, Indonesians will choose either Joko "Jokowi" Widodo, who became popular as Jakarta governor, or ex-general Prabowo as president, to succeed Susilo Bambang Yudhoyono, who completes the allowed two, five-year terms in October.

Opinion polls show Jokowi is ahead, but one recent survey indicated up to 40 percent of voters remain undecided.

On Wednesday, Jokowi told a Jakarta audience he will pursue market-friendly policies and make bureaucratic reform and infrastructure-building his priorities.

Hashim said that a Prabowo-led government "will be spending close to $60 billion a year on infrastructure projects" as Indonesia needs to pursue "massive" ones like China and the United States had done.

To fund big projects, he said "we will find the money by revamping the tax revenue collection system... because currently Indonesia has (one of the) lowest levels of tax collection in the world."

At present, only 12 percent of Indonesians pay tax, he said, adding, "Actually at least 60 percent should pay some level of tax. Even by reducing tax rates we can collect more revenue."

Tapping capital markets and raising the country's debt level are other options that Prabowo is considering, Hashim said. added.

While a Prabowo government wanted more foreign investment, it will insist on "strict reciprocity" for the banking and insurance sectors.

"We find it unacceptable that banks from overseas have unfettered access to the Indonesian banking market, while at the same time our banks have limited access to their markets," Hashim said.

A Prabowo administration will keep the mineral ore export ban introduced by the current government in January as it believes in adding value to such commodities in Indonesia, Hashim said.

Jokowi is also unlikely to lift the ban if he wins, an official from his political party said earlier this year. (Source : Reuters)