REPUBLIKA.CO.ID, JAKARTA -- Indonesia should be able to capitalize on the bigger opportunities offered by the One Belt, One Road (OBOR) initiative that promotes infrastructure development in various sectors, according to a banker.

"Indonesia is one of the Asian countries having a promising economic potential," Sumit Dutta, the president director of PT Bank HSBC Indonesia, noted in a press statement here, Tuesday.

Based on a study conducted by HSBC Global Research, the improving welfare in the Association of Southeast Asian Nations (ASEAN) has triggered an increase in the demand for housing, schools, hospitals, railways, airports, and other infrastructure facilities.

To meet the needs, six ASEAN member countries having the highest economic growth -- Indonesia, Malaysia, the Philippines, Singapore, Thailand, and Vietnam -- are estimated to invest some US$2.1 trillion until 2030, according to an analysis carried out by HSBC.

In accordance with the ambitious OBOR initiated by China, collaboration with regard to the development plan has the potential to trigger investment and boost construction activities.

The projects targeted under the initiative are closely related to infrastructure construction, such as in the areas of transportation and energy, in which the Chinese companies have a proven track record in their country.

The OBOR initiative is viewed as a development magnet in the ASEAN countries, particularly owing to intensified infrastructure development in those nations.

In July, PT Bank HSBC Indonesia had estimated that the ASEAN would face a gap in development funding amounting to US$1.2 trillion until 2030.

Countries having the largest gap in development funding are Indonesia, at $700 billion, and Thailand, $150 billion.

Meanwhile, an ASEAN-China Innovation Center will be set up in Bali to support the New Silk Road and Maritime Belt cooperation, or OBOR program.

"Initially, it will be set up in Singapore or Malaysia, but I have requested that (it) should be set up in Bali," Indonesian Ambassador to China Soegeng Rahardjo stated recently.

Bali will be the right place as this is in line with the vision of Chinese President Xi Jinping who had presented the OBOR concept before the Indonesian Parliament in 2013.

Earlier in the same year, President Jinping unveiled his idea on the OBOR concept in Astana, Kazakhstan.

"The Association of Southeast Asian Nations (ASEAN) and China have agreed, so hopefully, the center would be established this year in Bali," Rahardjo, concurrently Indonesian ambassador to Mongalia, noted.

To materialize the plan, ASEAN and China will establish cooperation with the Kura-Kura Foundation that is based in Bali.

The OBOR is a concept of regional connectivity that needs an innovation institution to help support the materialization of the plan.

Ikuti Whatsapp Channel Republika