TheJakartaPost

Please Update your browser

Your browser is out of date, and may not be compatible with our website. A list of the most popular web browsers can be found below.
Just click on the icons to get to the download page.

Jakarta Post

Businesspeople demand greater certainty in PPP projects

Businesspeople have called on the government to provide greater certainty on executing projects under the public-private partnership (PPP) scheme to get more private companies to participate in infrastructure development.

Winny Tang (The Jakarta Post)
Premium
Jakarta
Thu, March 28, 2019 Published on Mar. 26, 2019 Published on 2019-03-26T12:42:34+07:00

Change text size

Gift Premium Articles
to Anyone

Share the best of The Jakarta Post with friends, family, or colleagues. As a subscriber, you can gift 3 to 5 articles each month that anyone can read—no subscription needed!
Businesspeople demand greater certainty in PPP projects 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)

B

usinesspeople 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 Transportation Ministry surrounding the implementation of the PPP mechanism and the benefits firms could get if they participated in the projects.

Kadin advised the Transportation Ministry to create a centralized body inside itself that focuses on dealing with PPP projects. At present, projects under the PPP scheme are managed by different directorates under the ministry.

“We hope that the Transportation Ministry can create a centralized body that focuses on executing tender opportunities regarding PPP projects,” Erwin said.

The government still needs massive funds to develop planned infrastructure projects across the country. From 2015 to 2019, Indonesia needs Rp 4,769 trillion (US$336.4 billion) in infrastructure funding.

to Read Full Story

  • Unlimited access to our web and app content
  • e-Post daily digital newspaper
  • No advertisements, no interruptions
  • Privileged access to our events and programs
  • Subscription to our newsletters
or

Purchase access to this article for

We accept

TJP - Visa
TJP - Mastercard
TJP - GoPay

Redirecting you to payment page

Pay per article

Businesspeople demand greater certainty in PPP projects

Rp 35,000 / article

1
Create your free account
By proceeding, you consent to the revised Terms of Use, and Privacy Policy.
Already have an account?

2
  • Palmerat Barat No. 142-143
  • Central Jakarta
  • DKI Jakarta
  • Indonesia
  • 10270
  • +6283816779933
2
Total Rp 35,000

Your Opinion Matters

Share your experiences, suggestions, and any issues you've encountered on The Jakarta Post. We're here to listen.

Enter at least 30 characters
0 / 30

Thank You

Thank you for sharing your thoughts. We appreciate your feedback.

Share options

Quickly share this news with your network—keep everyone informed with just a single click!

Change text size options

Customize your reading experience by adjusting the text size to small, medium, or large—find what’s most comfortable for you.

Gift Premium Articles
to Anyone

Share the best of The Jakarta Post with friends, family, or colleagues. As a subscriber, you can gift 3 to 5 articles each month that anyone can read—no subscription needed!

Continue in the app

Get the best experience—faster access, exclusive features, and a seamless way to stay updated.