Government and Private Joint Venture to Work on 58 Infrastructure Projects

infrastructure projects

A total of 58 transportation infrastructure projects in Indonesia will be financed with joint funds between state funds as well as funding from private business entities. This was confirmed by the Minister of Transportation Budi Karya Sumadi. The funding scheme is Government and Business Entity Cooperation (PPP).

Budi Karya said that currently there are 58 transportation infrastructure projects financed through the scheme which have been submitted or have entered the financial close stage.

Among the transportation infrastructure projects financed through the PPP, the scheme is the Port of Paimbang. Budi Karya said that the development funding came from the collaboration with the Japanese, state-owned enterprises, and the private sector.

“The construction of the Makassar Pare-Pare train, as well as the construction and development of the Port of Gorontalo,” continued Budi Karya, as conveyed when he received an Honorary Doctorate from Gadjah Mada University (UGM) Yogyakarta, Monday (23/5/2022).

Budi Karya conveyed that the government was focused on finding sources of funding outside the state budget in the form of creative financing.

In addition to the PPP scheme, the government also optimizes assets through Utilization Cooperation (KSP) and Operational Cooperation (KSO) for State-Owned Goods (BMN).

Currently, Budi Karya continued, the government is focusing on developing various transportation facilities and infrastructure, especially those that prioritize the concept of sustainability.

For example, a green port like the one developed at Teluk Lamong Terminal in Surabaya will be followed by Tanjung Priok in Jakarta.

“In its current development, Green Port does not use fossil energy, has a potential for detecting oil spills and developing mangrove plantations around the port,” said Budi Karya.

In terms of facilities, the Ministry of Transportation is also developing the use of electric vehicles, such as procuring electric buses or converting conventional motorcycles to electric motors.