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Jakarta Post

SOEs open to private sector, ministry says

  • Rachmadea Aisyah

    The Jakarta Post

Jakarta   /   Fri, September 29, 2017   /  07:55 am
The Jakarta Post Image
All set: State Enterprises Minister Rini Soemarno (center) launches the groundbreaking of the Marina commercial zone development in Labuan Bajo, West Manggarai, East Nusa Tenggara.(JP/Markus Makur)

Complaints that state-owned enterprises (SOEs) dominate in a wide range of projects are commonly heard among business players nowadays. The so-called pervasive presence of these firms is especially true in the infrastructure sector, which may need Rp 4.7 quadrillion (US$347.8 billion) by the end of 2019. However, speaking at an infrastructure forum on Thursday, State-Owned Enterprises Minister Rini Soemarno effectively rebuked such a concern, claiming that private firms found it hard to participate in infrastructure projects, including on Java, the country’s most developed island, because of the risks it entails. Toll road projects on Java, for instance, are often hampered by disputes in the land acquisition process. “What happens on Java and in other places is that many of these [private] companies have the license already secured. However, they do not construct ...