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Jakarta Post

Editorial: Intervention into $10b project

Jakarta   /   Fri, July 6 2012   /  09:14 am

At first glance, Finance Minister Agus Martowardojo’s defiance of the President’s instruction regarding the government’s guarantee for the feasibility study on the US$10 billion Sunda Strait Bridge project appeared to be an act of insubordination, a “renegade” attitude that could severely damage the credibility of the government’s policy-making capability.

But a deeper reading of Presidential Decree No. 86, which was issued last December and which gives the consortium, led by the Artha Graha business group, and consisting of Lampung and Banten provincial administrations, virtually full control over the country’s largest-ever infrastructure project, reveals many flaws, contravening the principles governing the public-private partnership (PPP) scheme in infrastructure development.

We cannot understand how the legal experts at the President’s Office could have ...