Aug 28 (Reuters) - Indonesia could utilize the potential of Islamic finance to fulfil its ambitious infrastructure plans, Standard & Poor's said in a report on Tuesday.
The poor state of infrastructure is hindering the growth of Southeast Asia's largest economy, the report said, while noting that the government is planning to spend more than $200 billion through 2014 to upgrade and expand infrastructure.
It also noted that most infrastructure projects are backed by the private sector while the government is considering various financing alternatives to fund the rest.
"We believe Indonesia can emulate Malaysia's success thus far in utilizing Islamic finance for infrastructure development. This is due to Indonesia's large infrastructure development needs, the government's willingness to attract private capital to fund these investments, and the rising demand for investable assets of a growing domestic Islamic finance market," said S&P credit analyst Allan Redimerio.
(Reporting by Andjarsari Paramaditha in Jakarta)
(Reuter / 28 August 2012)
Alfalah Consulting - Kuala Lumpur: www.alfalahconsulting.com
Islamic Investment Malaysia: www.islamic-invest-malaysia.com