Indonesian ministry invests $5.4 billion in public-private partnership projects

Infrastructure projects worth trillions expedited by Indonesia’s Public Works and Housing Ministry in hopes to attract more private investors

Jakarta city skyline with urban skyscrapers at night. leolintang/Shutterstock

In Indonesia, seven infrastructure projects are underway for early next year to help the country attract new private investments, reported The Jakarta Post.

The Public Works and Housing Ministry (PUPR) has committed to advancing these projects valued at a striking IDR76.37 trillion (USD5.4 billion).

Eko “Heri” Djoeli Heripoerwanto, director general of infrastructure financing at PUPR, said that the projects consist of the Djuanda drinking water system (SPAM) in Purwakarta of West Java (~IDR 5.9 trillion), as well as six toll road and bridge plans (IDR 70.4 trillion).

The projects are planned to start its early transaction phase in the beginning of 2021.

In an online press conference, Heripoerwanto shared: “In 2021, we will start the procurement process for six roads that span 208.7 km and a drinking water system project. If everything goes smoothly, we could execute the process for all listed projects.”

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The private sector has been a huge helping hand to the government in easing the excessive state budget through financing, managing, and developing Indonesia’s infrastructure projects.

The Public Works and Housing Ministry predicts that the state funds are estimated to insure at most 30 percent of the necessary development funding until 2024.

These projects are part of 158 infrastructure projects that are still underway. Support from the private sector is needed to help finish such infrastructure that will drive economic growth.

The government’s governance will also be crucial to solving land acquisition and toll road tariff issues.

In spite of the economic downturn from the COVID-19 pandemic, Indonesia’s infrastructure projects are still appealing towards private investors and endure optimism in the long-run.