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Reorganization may put PPP projects at risk
The National Development Planning Boardâs (Bappenas) proposal to terminate the deputy chief for infrastructure position is contradictory to President Joko âJokowiâ Widodoâs plan to focus on infrastructure development, since the move could put public-private partnership (PPP) projects at risk, experts say
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The National Development Planning Board's (Bappenas) proposal to terminate the deputy chief for infrastructure position is contradictory to President Joko 'Jokowi' Widodo's plan to focus on infrastructure development, since the move could put public-private partnership (PPP) projects at risk, experts say.
Bappenas head Andrinof Chaniago announced last weekend that he had proposed that the Administrative and Bureaucratic Reform Ministry scrap the agency's deputy chief for infrastructure position, currently held by Dedy S. Priatna, for the sake of efficiency and effectiveness.
'We don't mean to reduce our attention to infrastructure. We are fully aware that it's important, thus we decided to take this step, so we can work in a more precise, efficient and effective way,' Andrinof said at a press briefing, adding that the divisions under the infrastructure deputy could be managed by others.
Bappenas has nine deputies overseeing directorates that focus on different sectors, such as regional development and autonomy, development financing, natural resources and environmental issues.
Public policy expert Agus Pambagio said the deputy chief for infrastructure had a major role in infrastructure development, particularly in projects involving the private sector.
'The government can't rely solely on the state budget to realize its ambitious infrastructure target. We need the deputy chief for infrastructure to plan the projects and seek funding aside from the state budget. Without the deputy, PPP projects will be more challenging,' Agus said.
Former Bappenas head Paskah Suzetta shared this view, saying that the infrastructure deputy was the one who initiated PPP projects, and that his role offered vital support to the state's infrastructure projects.
Several projects involving the deputy include the Cilamaya Port project; the express train connecting Jakarta, Bandung (West Java) and Surabaya (East Java); the National Capital Integrated Coastal Development (NCICD) project; the trans-Sumatra toll road and railway projects; and the marine highway program, meant to be one of Jokowi's legacies.
The country needs Rp 5,519 trillion (US$420 billion) in investment for infrastructure projects between 2015 and 2019, 30.6 percent of which is needed from the private sector, Bappenas data show.
Andrinof said that despite the planned restructuring, the government's infrastructure projects would not be obstructed.
'In the future, our infrastructure planning should not turn out like the Cilamaya project. We also do not expect to see coal train projects in the future. When planning infrastructure projects, all aspects should be considered,' he went on.
Dedy, however, refused to comment on the matter, saying that he would just follow orders.
Dedy currently leads five directorates: transportation; settlement and housing; public and private partnerships; water resources and irrigation; and energy, telecommunications and information.
Andrinof's reorganization would see the directorate of public and private partnerships moved under Bappenas' deputy chief for development funding. The directorate for water resources and irrigation along with the directorate of energy, telecommunications and information would be managed by the deputy chief for maritime and natural resources. The directorates of transportation as well as settlement and housing would be overseen by the deputy chief for regional development and autonomy.
