“ … Here is another one. A change in what Human nature will allow for government. "Careful, Kryon, don't talk about politics. You'll get in trouble." I won't get in trouble. I'm going to tell you to watch for leadership that cares about you. "You mean politics is going to change?" It already has. It's beginning. Watch for it. You're going to see a total phase-out of old energy dictatorships eventually. The potential is that you're going to see that before 2013.

They're going to fall over, you know, because the energy of the population will not sustain an old energy leader ..."
"Update on Current Events" – Jul 23, 2011 (Kryon channelled by Lee Carroll) - (Subjects: The Humanization of God, Gaia, Shift of Human Consciousness, 2012, Benevolent Design, Financial Institutes (Recession, System to Change ...), Water Cycle (Heat up, Mini Ice Ace, Oceans, Fish, Earthquakes ..), Nuclear Power Revealed, Geothermal Power, Hydro Power, Drinking Water from Seawater, No need for Oil as Much, Middle East in Peace, Persia/Iran Uprising, Muhammad, Israel, DNA, Two Dictators to fall soon, Africa, China, (Old) Souls, Species to go, Whales to Humans, Global Unity,..... etc.)
(Subjects: Who/What is Kryon ?, Egypt Uprising, Iran/Persia Uprising, Peace in Middle East without Israel actively involved, Muhammad, "Conceptual" Youth Revolution, "Conceptual" Managed Business, Internet, Social Media, News Media, Google, Bankers, Global Unity,..... etc.)

Friday, March 06, 2009

State-funded projects to roll in next two weeks

Aditya Suharmoko, The Jakarta Post, JAKARTA | Fri, 03/06/2009 9:05 AM  

State-funded projects will begin construction within the next two weeks, kickstarting this year's massive infrastructure program, a minister says. 

The projects will be financed by the Rp 12.2 trillion fund for infrastructure, as part  of the Rp 73.3 trillion set aside by the government under its stimulus package to help cushion the impacts of the global economic crisis.

"Ministries [which are implementing these projects] will hand their documents to the Finance Ministry on March 11, and the projects can be started at the latest March 18," Finance Minister Sri Mulyani Indrawati told a media conference Thursday.

Mulyani said the effect of the infrastructure stimulus should be felt at the latest in June. "The impact of physical projects are usually felt within two months. So, in May or June we should feel it."

The National Development Planning Agency (Bappenas) will oversee the implementation of the projects funded by the stimulus. "Ministries that fail to absorb the funds will get their allocation cut in next year's budget," she said.

Public Works Minister Djoko Kirmanto, whose ministry received a large part of the stimulus, said the project tenders were "almost settled", meaning tender results were coming in and work could start soon.

The Rp 12.2 trillion fund will come on top of around a massive Rp 150 trillion to be spent on infrastructure projects this year, two thirds of which is due  to come from the state budget and the rest from the state enterprises. 

Infrastructure development is highly crucial for Indonesia's economy, especially with exports down. These government-led infrastructure projects will be a major factor propeling the economy to reach 4.5 percent economic growth this year.

However, while the financing for state-approved projects has been largely secured, the country will still have difficulties attracting the participation of the private sector in the longer term, unless it can provide incentives such as guarantees on infrastructure projects, said experts at a conference on Thursday.

Asian Development Bank (ADB) principal infrastructure specialist Bob A. Finlayson said the current global economic crisis had increased the uncertainties for investors.

"There's still a lot amount of money out there, but people aren't going to take decisions quickly. 

It's possible [they will disburse funds] to selective good projects," he said.

According to  Bappenas, between 2010 and 2014 the country will need a gigantic Rp 1,429 trillion of funds for infrastructure projects. But the government could only provide about 31 percent, or Rp 451 trillion, with the rest to be funded through public-private partnerships.

Bambang Susantono, deputy to the Coordinating Minister for the Economy on infrastructure, said the government, knowing the private sector would be selective in "cherry-picking" projects, realized the private sector needed incentives.

For example, there is a guarantee fund provided for in the 2009 state budget, which means government can help underpin "political risks",  to  cover the project risks  related to government policies, he said.

The government has also established the Indonesia Infrastructure Fund Facilities (IIFF) to secure funds for infrastructure financing. 

10 ministries getting the biggest infrastructure stimulus funds: 

  • Public Works (Rp 6.5t)
  • Transportation (Rp 2.2t)
  • Energy, Mineral Resources (Rp 500b)
  • People's Housing (Rp 400b)
  • Maritime and Fisheries (Rp 100b)
  • Agriculture Ministry (Rp 650b)
  • Trade (Rp 335b)
  • Manpower (Rp 300b)
  • Health (Rp 150b)

Source: Office of the Coordinating Minister for the Economy

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