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Jakarta Post

Businesspeople demand greater certainty in PPP projects

  • Winny Tang

    The Jakarta Post

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Jakarta   /   Thu, March 28, 2019   /  09:44 pm
The Jakarta Post Image
Infrastructure race: President Joko “Jokowi” Widodo (third right) inspects a section of a toll road construction project during a recent visit to Bogor, West Java.(JP/Ayomi Amindoni)

Businesspeople have called on the government to provide greater certainty on executing projects under the public-private partnership (PPP) scheme, in order to get more private companies to participate in infrastructure development. Erwin Aksa, deputy chairman for construction and infrastructure at the Indonesian Chamber of Commerce and Industry (Kadin), said many private companies were still reluctant to take advantage of the PPP scheme, because infrastructure projects, on many occasions, had turned out to be unprofitable. “Often, the calculations made for feasibility studies on infrastructure projects such as toll roads were very different from the real results,” he said at a discussion forum in Jakarta recently, explaining that this had caused private companies to suffer losses. In particular, he said, businesspeople complained about limited information from the Tr...