Indonesia's current energy and infrastructure problems represent a significant opportunity for Western Australian companies in the sector, according to Noke Kiroyan from the Indonesian Chamber of Commerce.
Chairman of the chamber’s Commission on Economic Recovery, Mr Kiroyan said the “crises” had the potential to turn into a political headache for the recently elected government of Susilo Bambang Yudhoyono.
However, foreign investors could take heart in the Indonesian president’s soon-to-be introduced investment law reform legislation in the construction and energy sectors.
Areas of concern for local companies in Indonesia – such as that for the oil and gas division of engineering firm Clough over approval delays – would most likely be improved, Mr Kiroyan said at a recent Australia-Indonesia Business Council breakfast.
“There are difficulties for Indonesia. If they are not handled right, then yes, the country is facing another crisis similar to that of the financial crisis in 1997,” said Mr Kiroyan, who is also chairman of Rio Tinto Indonesia and president of the Indonesia-Australia Business Council.
Indonesians have a perception that they are entitled to get cheap fuel, he said, and the higher fuel price being experienced around the world could spill over into a political and economic crisis if the government didn’t move to address key obstacles.
