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Govt to focus PPPs on urban infrastructure in 2022
The public-private partnerships (PPPs) will focus on developing facilities related to drinking water, waste management, housing, healthcare, gas distribution, urban transportation and the new capital city.
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The drinking water system development project site in Umbulan Pasuruan in East Java as pictured last Thursday. The project is being developed by private consortium PT Meta Adhya Tirta Umbulan, which is a joint venture between private gas firm Medco Gas Indonesia and private construction firm Bangun Cipta Kontraktor. (Antara/Zabur Karuru)
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he government has underlined basic services and urban infrastructure as the main focus for public-private partnerships (PPP) in 2022 as it seeks to catch up on development plans during Indonesia's economic recovery period.
Riko Amir, director of financing strategy and portfolio at the Finance Ministry, said on Monday that drinking water, waste management, housing, healthcare, gas distribution, urban transportation and new capital city development were the focus sectors for PPPs next year. The ministry had at least five PPP projects ready for auction in 2022.
“We hope we can accelerate [PPP projects] so we can provide infrastructure for the public as soon as possible,” he said.
PPPs enable the government to finance infrastructure development without burdening the state budget and issuing more bonds.
Between 2020 and 2024, the state budget is estimated to cover only 30 percent of the government’s planned infrastructure projects worth Rp 2.05 quadrillion ($143.3 billion), according to the Public Works and Housing Ministry.
Read also: Govt to offer 25 PPP projects worth Rp 278.35 trillion next year
In 2022, the government is planning to auction at least five projects for PPP, including an airport in Singkawang, West Kalimantan, worth Rp 1.9 trillion.
