Private sector urged to involve in infrastructure development

Jakarta Finance Minister, Sri Mulyani, has expressed hope that more private companies will be involved in infrastructure development, particularly infrastructure that is concerned with national connectivity.

"The government has made various schemes to convince and encourage private companies to invest in infrastructure project," the finance minister said, when addressing a National Infrastructure Conference 2017 here, on Thursday.

Mulyani stated that the government has established PT Penjaminan Infrastruktur Indonesia (PT PII), which is assigned to provide guarantee for high-risk infrastructure projects.

"Infrastructure investments are usually long-term and over a period of the government; therefore, PT PII plays a role in ensuring that investments as well as benefits, as stated in the agreement, will return," he noted.

According to him, PT PII has been carrying out its role in the involvement of private infrastructure for both planning and implementation. Therefore, it is expected that the private sector will become more confident while making investment in infrastructure.

PT PII President Director, Armand Hermawan, remarked that the National Infrastructure Conference 2017 is expected to open new opportunities in new investment and financing in national infrastructure projects.

"We are using the theme of 'Infrastructure Unifies the Nation' because, as stated by Ibu (Madam) Sri Mulyani, infrastructure development is very important to unite the nation. The availability of infrastructure is expected to impact economic and social growth," he revealed.

In addition, the activity is expected to also increase the knowledge of government agencies, especially local governments, to utilize the scheme of Government Cooperation with Business Entities (KPBU) in the provision of national and regional infrastructure.

"The event also aims to provide reference to candidates for Cooperation Project Manager (PJPK) and investors on how to implement KPBU in Indonesia," Hermawan explained.

He added that PT PII has provided guarantees for 13 infrastructure projects under the KPBU scheme.

The projects included PLTU Batang (Batang steam power plant project); eight toll road projects (Batang-Semarang, Balikpapan-Samarinda, Pandaan-Malang and Manado-Bitung, Jakarta-Cikampek II Elevated, Krian-Legundi-Bunder-Manyar, Cileunyi-Sumedang-Dawuan, and Serang-Panimbang); Umbulan SPAM and all Palapa Ring Project packages, namely West, Central, and East regions, with a total investment value of around Rp141 trillion.

"The 13 projects are expected to be references for local governments and the private sector that investment in infrastructure is quite convenient and profitable," he pointed out.

Source: Antara News

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