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Jakarta Post

Govt initiates partnership scheme to involve private sector in transportation projects

  • Riza Roidila Mufti

    The Jakarta Post

Jakarta   /   Wed, July 31, 2019   /   04:31 pm
 Govt initiates partnership scheme to involve private sector in transportation projects Travelers arrive at the Kampung Rambutan bus terminal in Jakarta on June 8, 2019 during the return flow of the annual post-Ramadan exodus season. The government is inviting the private sector to develop and revitalize bus terminals across the country under a partnership scheme. (Antara/Akbar Nugroho Gumay)

To offset the limited state budget allocation for infrastructure development, the government is inviting the private sector to participate in building transportation facilities across the nation under a public private partnership (PPP).

Speaking on Wednesday at an investors gathering in Jakarta, land transportation director general Budi Setyadi of the Transportation Ministry said that it was extending the PPP scheme invitation to the private sector for constructing 128 bus terminals that were under the ministry's management.

Budi said that the initiative included 40 type-A bus terminals nationwide that were scheduled for a major facelift next year, to transform them from conventional to mixed-use terminals.

"Of these 40 terminals, the state budget allocation only covers 20 terminals. Thus, for the remaining 20 terminals, we are opening an opportunity for investors to participate in developing them," he said, adding that the ministry expected to spend up to Rp 750 billion (US$53.57 million) in renovating 20 type-A terminals.

“We hope that the funds for constructing the 20 other bus terminals will come from the private sector,” said Budi.

Budi said that an opportunity was also on the table for the private sector to take over the management of these revitalized bus terminals from the ministry.

In addition, it was inviting the private sector to invest in developing and revitalizing truck scales (weighbridges) across the country. (hen)