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AIIB loans for private sector to speed up infrastructure projects
The loans will not only go to the government but also to the private sector and the state-owned enterprises (SOEs) involved in those projects.
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People walk next to signage for the AIIB Annual Meeting at the European Conventional Center in Luxembourg on July 12-13, 2019. (Courtesy of AIIB)
The government hopes to start developing a satellite project and the Semarang-Demak toll road in Central Java this year through a public private partnership (PPP) scheme with loans from the Asian Infrastructure Investment Bank (AIIB).
The loans from the Beijing-based multilateral lender will not only go to the government but also to the private sector and the state-owned enterprises (SOEs) involved in those projects.
“We appreciate AIIB for providing loans to the private company and SOEs directly, aside from the loans for the government. So, they can support the public private partnership scheme,” National Development Planning Minister Bambang Brodjonegoro told The Jakarta Post on the sidelines of AIIB Annual Meeting in Luxembourg on Saturday.
The minister said he did not remember details of the loans, but the government hoped they can be disbursed this year.
“It is now under examination. It should be approved this year,” said the minister, who is an economics professor.
Based on the ministry’s “Public Private Partnership Infrastructure Projects Plan in Indonesia 2018” report, the construction of both projects is estimated to cost US$1.17 billion.
