Private Investors are Urged to Invest in Infrastructure Financing Projects

By : Herry Barus And Aldi Firhand. A | Saturday, April 28 2018 - 23:03 IWST

PT PP (Persero) Tbk, one of the construction and investment companies is currently working on the Holtekamp Bridge project, Jayapura.

INDUSTRY.co.id - Jakarta - The government is encouraging the private sector to invest in infrastructure development projects in the country through a number of financing schemes that allow the private sector to engage both as investors and implementers in various strategic projects.

"The government can not solve alone, there should be a financing framework that encourages the private sector, including through the scheme of Cooperation between Government and Business Entities (KPBU) and Infrastructure Financing of non APBN (PINA)," said Deputy of Facilities and Infrastructure of Bappenas Wismana Adi Suryabrata in the discussion of West Merdeka Forum (FMB) 9 in Jakarta, Friday (4/27/2018)

The PINA scheme will be used for infrastructure projects that can be said to be economically viable (brown field). While the KPBU will be directed to a project that can be said new (green field).

"The total investment requirement for infrastructure amounts to Rp4,796.2 trillion, of which 41.3 percent comes from APBN and APBD funds, while state-owned enterprises account for 22.2 percent and private sector with 36.5 percent," he said.

Despite involving the private sector, Wismana asserted, there is still state control so as not to harm the community. "Moreover, private entrepreneurs in the finance and operation, thus, people can feel the results of infrastructure development more quickly and better quality," he said.

Furthermore, Wismana said that three PINA scheme projects have been launched, namely Trans Java toll road, including Bekasi - Cawang - Kampung Melayu (Becakayu), West Java International Airport, to the power plant in Aceh built by PT PP Energi.

He further said infrastructure development is aimed at fulfilling basic services, fulfilling urban infrastructure, and supporting leading sectors. "Urban transport is important because 52 percent of our population lives in urban areas," he said.

Wismana said physical connectivity should be built for various leading sectors, including for such tourism that aims to lower logistics costs.

Previously Director General of Information and Public Communication (IKP) Ministry of Communications and Informatics Rosarita Niken Widiastuti in opening remarks said President Jomo Widodo paid serious attention to infrastructure development, including the National Strategic Project (PNS). (Ant)