Singapore telecom companies are investing $150 million (Rp1.09 trillion) to build fibre optic network in some Indonesia’s major cities, the Investment Coordinating Board said in a press statement.
In addition to this, the board has also received interest from a investor looking at injecting $15 million in the pharmacy industry.
While Investment Coordinating Board head Franky Sibarani did not elaborate the names of the investing companies, he said, the firms will build telecom infrastructure networks in Jakarta and Surabaya, East Java.
“After Surabaya and Jakarta, they will build a fiber-optic network in other big cities in Java that will interconnect the entire island of Java without any affiliation with other telecom service providers,” he said.
According to him, the investor plans to establish two companies in Indonesia to handle the whole project.
The Singapore-based investors are a company with 20 years experience in the investment, construction, operation and maintenance of telecom infrastructure.
The company also has business activities in Cambodia and Myanmar where it already owns and operates a passive telecom infrastructure of which 8,600 km fibre optic network installed in Cambodia and 5,000 km fibre optic network installed in Myanmar.
Singapore is one of the largest sources of foreign direct investment (FDI) in Indonesia. Since 2010 until the third quarter of 2015, FDI from Singapore reached nearly $30 billion, spread across 6,868 projects.
Investments from Singapore have been across several sectors including, transport, warehousing, telecom, agriculture, mining, food, mineral as well as electricity, gas, and water.
The other investor, keen on pumping in funds in pharmacy centre, is a business major with 12,000 employees and having a data centre in India.
From the data released by BKPM period for January to September 2015, Singapore invested $3.5 billion, followed by Malaysia $2.9 billion, Japan $2.5 billion, South Korea $1.0 billion and the Netherlands $ 900 million.