Pramono said the decision was made to facilitate financing issues the government was facing in implementing 225 projects.

“President Jokowi has instructed Bappenas and the BKPM to set a business plan for each of the projects so that each will not be entirely financed by the state budget. If a private company is interested in a particular project and has a business plan, such as for the Patimban port project, it can cooperate to work on the project,” Pramono said at the Presidential Palace in Jakarta.

He made the statement after a limited Cabinet meeting, during which the progress of strategic projects was evaluated.

During the meeting, the President claimed that 86 projects or 44 percent of the total projects had been implemented while the remaining 139 projects, or 56 percent, were in the planning stage.

Pramono said that during the meeting, the President highlighted that amid the ongoing global economic slowdown, the 225 strategic projects must address fundamental issues, namely to drive economic growth at both the national and regional levels.

“In one blow, we hopefully can create a multiplier effect in regions where the projects are to be implemented,” he said.

Coordinating Economic Minister Darmin Nasution said the 225 projects and several power plant projects, which the government counted as strategic projects, needed to be completed immediately. The projects are stipulated in Presidential Decree (Perpres) No.3/2016 and Presidential Instruction (Inpres) No.1/2016.

"They comprise 52 railway projects, 19 train projects, 17 airport projects, 13 port projects, 10 clean water projects and the development of 60 reservoirs," Darmin said.

In terms of regions, 89 projects will be located in Java, followed by 46 in Sumatra, 28 in Sulawesi, 24 in Kalimantan, 16 in Bali and West Nusa Tenggara, 13 in Maluku and Papua, and 10 in other provinces.

"Eighty-six projects have been implemented while the 139 others are in the planning phase," the minister said.

Darmin also reported that in the 35,000 MW power plant project, work contracts for the construction of plants to produce 17,800 MW of electricity had been signed. 

“The work contracts for the 15,500 MW electricity plants, which will be built by independent power producers, and about 3,750 MW, which will be handled by state electricity firm PLN, will be signed this year,” Darmin said.

He further said the President had highlighted that funding schemes for the projects should be decided as soon as possible. There should be an immediate decision on which projects are to be financed by the state budget, state-owned enterprises, provincially owned firms, private companies or public private partnership (PPP).

"It will be discussed by technical ministries, as well as the Finance Ministry and Bappenas," Darmin said. (ebf)

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