Foreign and local investors have asked the government to make changes in the public partnership program (PPP) to develop roads, ports and other infrastructure
oreign and local investors have asked the government to make changes in the public partnership program (PPP) to develop roads, ports and other infrastructure.
The development of infrastructure offers quite promising business opportunities but a lack of preparation by the government has discouraged investors.
Bernardus Djonoputro, managing director of publicly listed toll road operator PT Nusantara Infrastructure, said that the PPP program was still lagging and investment in infrastructure was suboptimal.
'From most of listed infrastructure projects, the feasibility studies provided by the government are insubstantial so interested firms need to do additional studies themselves. In addition, there is no PPP center or institution which can accelerate the projects' time frames and tender process, such as the one in Egypt,' he said during a business dialogue on infrastructure development held jointly by his company and the Australian Trade Commission (Austrade).
Austrade senior commissioner Kym Hewett said at the event that the Indonesian infrastructure development program was a great challenge as well as a great opportunity for Australian companies.
He added that while the government had recently committed to pouring US$20 billion into infrastructure development this year, the progress of development remained slow. 'When it comes to infrastructure, responsibility for the decisions about what gets built lies with the government,' he added.
Several Australian firms have stated their interest in projects in Indonesia, but the uncertainty of the PPP is still an issue.
Managing director of Australian financiers Macquarie Capital Group Brad Kim believes Indonesia is still attractive to investors despite the recent downgrade of rating outlook by Standard and Poor's.
'Indonesia is the largest country in Southeast Asia with the biggest market demand. I believe that with good infrastructure, it could lure many investors to come in. The money is there for the infrastructure,' he added.
Another Australian company, the infrastructure consulting firm Sinclair Knight Merz (SKM) transport planning manager for Asia, Simon Babes, told the The Jakarta Post on the sideline of the event that SKM was ready for projects in Indonesia, particularly in the realm of mass transportation.
'Indonesia is on our shortlist. It is our target to work with infrastructure and transport operator conglomerates in Indonesia. We are actively looking for opportunities whether in tourism, urban development, commerce, or an airport,' he said. (koi)
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