T

he government expected to jump-start its long-delayed public-private partnership (PPP) infrastructure projects next year, including the mega-power plant project in Batang, Central Java, by easing their licensing and land-acquisition problems, Finance Minister Bambang Brodjonegoro said
on Friday.

Bambang said that with the implementation of the land-acquisition law next year and the government'€™s efforts to ease licensing procedures, a number of delayed infrastructure projects, which also include several other coal-fired power plants outside Java, could be resumed next year.

The construction of the US$40 billion Batang coal-fired plant, with a capacity of 2,000 MW, which was initially scheduled for commencement three years ago, has been delayed due to land-acquisition problems.

Besides the Batang plant, work on several mine-mouth power plants in South Sumatra must also begin next year, Bambang said.

'€œThese projects already have the necessary infrastructure. So, they really have to start,'€ he said.

The country, according to the Presidential Working Unit for the Supervision and Management of Development (UKP4), will need about Rp 6 quadrillion ($493 billion) for infrastructure projects over the next five years to achieve its 7 percent economic growth target.

Half of the investment needs are expected to come from the private sector.

The previous administration had tried to promote public/private schemes in its effort to develop various infrastructure projects to spur economic growth, but the private sector has been reluctant to participate as a result of legal and other uncertainty.

Speaking about the 2015 state budget, the finance minister also said he was optimistic that the government'€™s target to collect 1.38 quadrillion in tax revenues, up from Rp 1.23 quadrillion expected this year, would be achieved.

Bambang said that his office was going to put a higher focus on tax collection in order to achieve the tax revenue target.

'€œ2015 will be the year in which we get more serious about tax revenues by prioritizing tax compliance,'€ he said on Friday on the sidelines of a CEO forum.

He acknowledged that there were concerns regarding the tax enforcement capabilities and whether or not the taxes could be collected comprehensively.

To resolve the issue, the ministry will soon sign an agreement with the National Police and Attorney General'€™s Office (AGO) to cement the legal authority of both tax officers and customs and excise officers.

'€œHopefully we can carry it out soon after the new attorney general is appointed,'€ he added.

Data from the ministry shows that the country'€™s tax ratio'€”which is the percentage at which a company or an individual is taxed'€”has remained at around 11 percent to 12.3 percent.

Bambang insisted that with a growing gross domestic product (GDP), the ratio should have been higher.

'€œIf the ratio stays the same at 11 percent to 12 percent, some things must not be right,'€ he said.

The ministry will also pursue higher non-tax state revenue (PNBP) in 2015. Ministry data reveals that annual royalties from the mining and fisheries sectors revolve at around only Rp 25 trillion and Rp 300 billion, respectively.

According to the 2015 state budget, the PNBP is set at Rp 410.3 trillion, up from Rp 363.28 trillion projected in 2014.