Jakarta to set up own holding company
REPUBLIKA.CO.ID, JAKARTA -- Jakarta Governor Basuki Tjahaja Purnama plans to establish a holding company of region-owned enterprise (BUMD) to accelerate development in the capital of Indonesia.
"By doing so, the development will not have to use the regional budget. It is similar to the Singapore investment company, Temasek Holdings," Basuki Tjahaja Purnama said here on Wednesday.
With the establishment of a holding company, the governor hopes the construction will see better growth, the kind of which has not happened in many years.
"So, I have deliberately imitated the Singapore model. If we have a holding company in Jakarta, the development in the city will happen faster," he said.
The projects can be implemented by the holding company of region-owned enterprise and re-purchased by the Jakarta administration.
The presidential decree (Perpres) issued to this effect provides legal protection for the move, he noted.
"Therefore, I ask the professionals to cooperate with Temasek or Islamic Development Bank and create an asset management company. Then, we will establish our BUMD holding company.. The holding company will go public and collaborate with strategic partners," he said.
"So, when leaders change all development programs remain integrated and will continue properly," he said.