Jakarta Globe, Eko Adityo Nugroho, Nov 06, 2014
Jakarta. The Indonesian government plans to offer 43 infrastructure projects worth $52 billion to private investors next year, according to an official of the National Development Planning Ministry.
Jakarta. The Indonesian government plans to offer 43 infrastructure projects worth $52 billion to private investors next year, according to an official of the National Development Planning Ministry.
Bastari
Panji Indra, a director at the ministry, said the projects will be offered
under public-private partnership (PPP) schemes.
The
projects offered include airports, monorail and, light rail transits, toll
roads, coal transportation trains, ports, and water supply.
The
government has published details regarding the projects in the Public Private
Partnership Book 2015, which guides infrastructure development in the country.
Speaking on
the sideline of Indonesia Infrastructure Week late on Wednesday, Bastari said
of the 43 projects, eight are classified as “ready” to be offered, 11 are “prospective” and 24 are marked as
“potential.”
Bastari
said the government will offer 10 major airport projects to private investors,
including Juwata in North Kalimantan, Tjilik Riwut in Central Kalimantan and
Fatmawati Soekarno in Bengkulu.
“Apart from
airports, there are also a monorail project, coal transportation by train,
water supply and six ports,” Bastari said.
Citing the
Public Private Partnership Book 2015, he said the government plans to build an
express train line connecting the Halim Perdanakusuma Airport in East Jakarta
to the Soekarno-Hatta International Airport in Tangerang, Banten, in order to
ease passenger commuting.
The
director also announced a light rail transit system in Bandung, West Java, new
train networks for South Sumatra, three water supply projects in Semarang,
Central Java; Pekanbaru in Riau, and Pondok Gede in Bekasi.
Bastari
also flagged a project for waste disposal processing in Bogor and Depok.
Deputy
Minister Dedy Supriadi Priatna, who is charged with infrastructure affairs,
said the government plans to revise the PPP scheme to attract investors,
including with the introduction of a performance-based annuity scheme.
Under such
a scheme, private investors contribute to development, financing and the
operation of a project with a given concession time.
Once the
project is open for commercial use, investors will receive regular payments for
providing the service to the public, with a performance standard agreed to by
both parties.
The new
government under President Joko Widodo has a lot of research to do into the
infrastructure sector.
Poor road
and toll road conditions, over-crowded airports, over-capacity ports, and a
lack of train networks have been cited as the main stumbling blocks to strong
and sustained economic growth.
The
previous administration under Susilo Bambang Yudhoyono repeatedly offered
infrastructure projects to tender, but only a few have been completed.
Poor
preparation of projects, complex bureaucracy and low return in investment for
the private sector remain major factors that deter investor interest.
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.