Indonesia is now better prepared for a public-private partnership (PPP) scheme to develop infrastructure in the country, admitting that such a scheme often failed in the past, a senior minister says.
“Previously we were not well-prepared in terms of regulations relating to PPP. Some regulations did not allow the participation of private enterprises. Now regulations are more liberal, allowing PPP or even entirely private ventures,” Coordinating Economic Minister Hatta Rajasa said Thursday on the sidelines of a high-profile conference.
Hatta and President Susilo Bambang Yudhoyono were among the speakers at the Asia-Pacific Ministerial Conference on PPP for Infrastructure Development 2010, which kicked off Wednesday.
The conference, which runs until Saturday, is held in cooperation with the United Nations Economic and Social Commission for Asia and the Pacific, and is supported by the Asian Development Bank and the World Bank.
Indonesia has launched a PPP publication timed with the conference, offering 100 PPP projects worth a total of US$47.3 billion between 2010-2014, the National Development Planning Agency (Bappenas) said.
About $36 billion worth of projects are on offer, comprising the marine transportation sector, along with an additional $8.33 billion worth of priority projects covering toll roads, water supply, and solid waste processing and sanitation.
There are also potential projects worth $38.93 billion including air, land and marine transportation, railways, toll roads, water supply, solid waste processing and sanitation, and power.
The would-be longest suspension bridge in the world, the Sunda Strait Bridge connecting Java and Sumatra, which requires investment of up to $10 billion, is included in the list of potential projects. The bridge will be 29 kilometers long.
“Apart from connecting the two islands with the largest populations in Indonesia, it will also boost connectivity between Asian countries,” Yudhoyono said in his speech.
Bappenas infrastructure deputy head Dedy S. Priatna said the project was undergoing a feasibility study and construction was expected to start in 2012.
Yudhoyono said he expected the participation of private parties in the development of the Sunda Strait Bridge.
The government “has taken comprehensive moves to create a better investment climate,” he said, adding Indonesia has improved infrastructure in the past five years.
The road network has grown to 391,000 kilometers in 2009 from 343,000 km in 2004; the number of phone lines has increased to 30 million in 2009 from 7.8 million in 2004; the number of cell phone users has increased to 140 million in 2009 from 12 million; and internet users now number 30 million from 8 million previously.
Yudhoyono added that clean water was available to 11.07 million of Indonesia’s 230 million people.
The conference is to end in the signing of a Jakarta Declaration to replace the previous Seoul Declaration. “The declaration is expected to ... provide benefits for nations in the Asia-Pacific region,” he said.
