Government Offers 26 Large Projects to Private Parties

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The government through the Ministry of Public Works and Public Housing (PUPR) will offer 26 infrastructure projects with a government-business partnership (KPBU) scheme in 2023 with a total project value of IDR 165.68 trillion to private parties.

This news was confirmed by the Director-General of Infrastructure Financing of the PUPR Ministry, Herry Trisaputra Zuna. He said of the 26 KPBU projects offered in 2023, 10 of them are in the preparation stage with a total value of IDR 38.83 trillion, while the remaining 16 projects are in the transaction stage with a total value of IDR 126.85 trillion.

“Hopefully this year the study with the readiness of [the KPBU project] will be completed,” said Herry to Bisnis when met after a hearing with Commission V DPR in Jakarta, Monday (4/7/2022).

Herry explained that of the 26 PPP projects that will be offered to the private parties, some of them are in the National Capital (IKN) Nusantara.

He mentioned that the details of the projects that will enter the preparation stage in 2023 include 2 projects in the road and bridge sector, 2 projects in the water resources sector, 1 project in the housing sector, and 5 projects in the settlement sector.

Some of the projects offered in 2023 are:

  1. Bandung Intra Urban Toll Road (BIUTR), West Java
  2. Tuban – Gresik Toll Road
  3. DI Colo, Central Java
  4. Muara Juloi Dam, Central Kalimantan
  5. Flats TOD Mamminasata, South Sulawesi
  6. SPAM of the State Capital (IKN), East Kalimantan
  7. Assistance in the preparation of the Bimatara Regional Integrated SPAM PPP with SPAB Kuwil, North Sulawesi
  8. Petanglong Regional SPAM Kaliboyo System, Central Java
  9. Assistance in the preparation of the Ayung I SPAM PPP PPP integrated with the Sidan SPAB, Bali
  10. Assistance in the preparation of SPAM PPP and SPAB Karian Barat, Banten
  11. Cilacap – Yogyakarta toll road
  12. Demak-Tuban Toll Road
  13. Merangin Dam, Jambi
  14. Bodri Dam, Central Java
  15. PLTA and PLTS Tigahadji, South Sumatra
  16. MHP and PLTS Rotiklot Dam, NTT
  17. MHP and PLTS Napun Gete Dam, NTT
  18. DI Komering, South Sumatra
  19. Revitalization and modernization of irrigation system interconnection HLD WS Lombok, NTB 20. Flats Cisaranten, Bina Harapan, Bandung
  20. Integrated rental flats SEI Mangkei SEI, North Sumatra
  21. Rusunawa Karawang Spuur, Karawang
  22. Flat IKN phase I, East Kalimantan
  23. Assistance for Jatigede Regional SPAM PPP transactions
  24. SPAM Jatiluhur II, West Java and DKI Jakarta
  25. Transaction Assistance for SPAM SPAM Sinumbra, West Java

Meanwhile, City Planning Observer from Trisakti University Nirwono Yoga said that in the political year 2022–2024 private investors will tend to refrain from investing in government projects.

“Private investors will try to refrain from participating in various government projects, they will first see political developments until 2024,” said Nirwono, quoted Monday (4/7/2022).

For this reason, to keep investors interested in being involved in PPP projects, the government can only offer short-term projects.