The government is putting US$34 billion of infrastructure projects up for grabs by the private sector in 2009-2010, to be built between 2010 and 2012 under public-private partnership schemes, a minister says.

In a bid to expedite the construction of much-needed business infrastructure and stimulate the economy, State Minister for National Development Planning Paskah Suzetta said on Wednesday that the government has launched a Public-Private Partnership Book detailing the projects on offer.

There are 87 projects in 18 provinces in western Indonesia available to private investors, says Paskah.

"Eight projects are ready to be launched this year," he said.

The book, which can be obtained from the National Development Planning Agency (Bappenas), lists all of the projects, breaking them down into three categories: ready-to-offer projects, priority projects and potential projects.

The government has established the Public-Private Partnerships Center (PKPS) to facilitate cooperation between public and private sectors for infrastructure projects.

Paskah said private investors were expected to mobilize finance of up to Rp 320 trillion ($27.59 billion) towards infrastructure projects between 2009 and 2011, as hoped by Vice President Jusuf Kalla.

Indonesia needs Rp 1,429 trillion for construction of infrastructure projects between 2010 and 2014 to help it achieve an economic growth rate of at least 5 percent annually, he added.

Of that amount, the government can only provide 31 percent, or Rp 451 trillion, with the rest coming from public-private partnerships.

Anindya N. Bakrie, the vice chairman of the Indonesian Chamber of Commerce and Industry (Kadin), said businesses were ready to participate in the projects offered, as long as the regulations were clear.

"We, businesses, are ready to take risks, but we want the government to mitigate the risks. We want the projects to be guaranteed, and on a legal basis," he said.

Businesses have often complained of excessive bureaucracy in local administrations, hampering project plans and construction.

"Clear regulations and project guarantees will ensure private investors will invest money in the projects here," said Luki Eko Wuryanto, the deputy for investment planning at the Investment Coordinating Board (BKPM).

Dedy S. Priyatna, the deputy for infrastructure at Bappenas, said the government could at present only cover political risk, demand risk and project performance risk to help underpin investors.

Adam Sack, the country director of the International Finance Corporation (IFC), the World Bank's private sector arm, said the IFC and the Asian Development Bank, as well as other multilateral agencies, would now need to step up efforts to provide financing for infrastructure projects in Indonesia.

"Our role is much greater now since the banks have tight liquidity," he said

The government has established the Indonesia Infrastructure Fund Facilities (IIFF) to secure financing for infrastructure projects.

Infrastructure projects on offer:

I. Ready-to-offer projects

1. Marine transportation $24m

2. Railway $1.44b

3. Toll roads $1b

4. Water supply $54m

5. Power supply $2b

Total $4.52b

II. Priority projects

1. Toll roads $2.47b

2. Water supply $500m

3. Solid waste, sanitation $120m

Total $3.09 billion

III. Potential projects

1. Land transportation $5m

2. Marine transportation $1.01b

3. Air transportation $1.42b

4. Railway $10.52b

5. Toll road $11.77b

6. Water supply $105m

7. Oil, gas $1.7b

Total $26.53b

Total investment $34.14b

Source: National Development Planning Agency (Bappenas)

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