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Jakarta Post

Private sector, taxpayers to pay bill for new capital

  • Ary Hermawan and Riska Rahman

    The Jakarta Post

PREMIUM
Jakarta   /   Fri, August 30, 2019   /  08:18 am
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Financing for new capital city development(JP/Swi)

The government is banking on state budget funds and private sector investments to finance its capital city relocation plan, which is expected to cost Rp 466 trillion (US$32.73 billion). Most of the financing is expected to come from the private sector through public-private partnership (PPP) schemes, said National Planning Agency (Bappenas) head Bambang Brodjonegoro. “The government will open a tender process for the private sector to join, which could be purely private companies, or state-owned enterprises [SOEs] or a consortium,” Bambang told a group of media leaders in Jakarta on Thursday. The PPP schemes will be open to both local and foreign companies, Bambang said, but “we will implement affirmative action to prioritize local and state-owned companies”. President Joko “Jokowi” Widodo announced earlier this week the plan to relocate In...