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Jakarta Post

Insight: Sunda Strait Bridge and public-private partnership confusion

  • Lin Che Wei

Jakarta   /   Thu, July 26 2012   /  09:37 am

The Sunda Strait Bridge is one of the most ambitious projects in our recent history. With the cost expected to reach Rp 225 trillion (US$24 billion) according to Deputy National Development Planning Minister Lukita D. Tuwo, this is one of the most expensive infrastructure projects in Indonesia.

After a long, drawn out gestation, the project recently made headlines after Finance Minister Agus Martowardojo proposed revisions to Presidential Regulation No. 86/2011 to bring the project in line with existing public-private partnership regulations.

Ideally, a public-private partnership works by injecting private money into a public project. Paradoxically, the partnership in the Sunda Strait’s case might end up as public money injected into a private project. The proposal from the finance minister to pay for a feasibility study using government cash could be seen as example of...