INTERVIEW-Indonesia studies infrastructure, green bonds

Published: 02 Sep 2010 00:17:58 PST

HONG KONG, Sept 2 - Indonesia is looking into infrastructure and green bonds, a senior advisor to the government said on Thursday, as the biggest economy in Southeast Asia is in need of billions of dollars for the sector's development.

Indonesia will need $140 billion over the next five years in infrastructure development ranging from paving roads and highways to providing more power and water supplies nationwide.

As much as two-thirds of that amount would have to come from the private sector, adviser Edward Gustely said.

"I've been in discussions on infrastructure bonds and green investment bonds and again, it's a combination of the ability to tap into institutional capital that is looking to participate in this," Gustely told Reuters in an interview.

"It's being studied both by the government and the private sector," he said on the sidelines on a conference in Hong Kong. (Reporting by Lee Chyen Yee; Editing by Chris Lewis)