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Local governments propose PPP schemes for LRT projects
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Finance Minister Sri Mulyani Indrawati (left), accompanied by artist Chelsea Islan, reads the letters of Kartini (the women's emancipation hero) at Bank Indonesia Museum in Jakarta on April 11. (Antara/Wahyu Putro)
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even regional governments have proposed public private partnership (PPP) schemes to implement their respective light rail transit (LRT) projects after the central government failed to allocate funds in the state budget.
Finance Minister Sri Mulyani Indrawati agreed with the proposal, saying her ministry would facilitate the implementation of the PPP schemes for the LRT projects in Surabaya, Bandung, Tangerang, Makassar, Riau, Semarang and Sidoarjo.
“We have tried to convince (regional governments) that the Finance Ministry wants to help from the early stages of the process,” Said Sri Mulyani, as reported by tempo.co, on Monday.
She said the PPP schemes for the seven LRT projects were expected to become a model for infrastructure projects in other regions. “If we have standards for the process, regulation and contracts, then future projects in other regions will be easier,” the minister said.
Surabaya Mayor Tri Rismaharini proposed the PPP scheme for the LRT projects, which will cost Rp 3.8 trillion (US$285.67 million), after a lack of follow up by the central government after plans were developed two years ago.
A similar reason was mentioned by Bandung Mayor Ridwan Kamil regarding the project in Bandung.
“The construction of Corridor II of the LRT in Bandung is urgent because it will connect the network with the Jakarta-Bandung high speed railway. Without the LRT, the Jakarta-Bandung railway will terminate in the middle of a rice field,” he added.
Previously, National Planning Minister Bambang Brodjonegoro said the government was forced to cut Rp 300 trillion from its funding allocation for infrastructure by 2019 due to financial shortages. (bbn)
