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Thursday, April 19, 2007

Banks Asked to Build Middle East Network

Thursday, 19 April, 2007 | 15:18 WIB

TEMPO Interactive, Jakarta: State Minister of State-Owned Enterprises (SOEs) Sugiharto has asked the national banking sector to form a network with banks in the Middle East.

The reason for this is that many infrastructure projects can be established there by SOEs.

In addition to building a network, Sugiharto has requested banks to set up consortia.

According to him, the potential for the construction market in the Middle East is huge.

Countries such as Qatar, Abu Dhabi, Dubai, Libya, and Saudi Arabia still need foreign contractors to work on infrastructure projects in their countries.

However, financing is still not running well.

Managing Director of Bank Mandiri Agus Martowardojo has estimated that there are obstacles in Bank Indonesia's regulations, especially those associated with bank guarantees for projects.

Other countries do not recognize bank guarantees, which refer to Indonesia's Code of Commercial Law.

AGUS SUPRIYANTO

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