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Ministry to expedite PPP projects worth Rp 76 trillion
The projects are expected to enter the early transaction phase by the first quarter of 2021.
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Heavy equipment in the Bekasi-Cawang-Kampung Melayu overpass toll road construction project in Bekasi, West Java, on April 24. (JP/PJ Leo)
T
he Public Works and Housing Ministry has vowed to expedite the preparation of seven infrastructure projects worth Rp 76.37 trillion (US$5.4 billion), funded through public-private partnership (PPP) schemes, to progress by early next year, as it seeks to lure more private investment.
They consist of six toll road and bridge projects with a total investment of Rp 70.4 trillion, as well as the Djuanda drinking water system (SPAM) in Purwakarta, West Java, worth around Rp 5.9 trillion, according to PUPR infrastructure financing director general Eko “Heri” Djoeli Heripoerwanto.
Road construction, meanwhile, includes the 31.1-kilometer Bogor-Serpong via Parung toll road, initiated by PT Pamapersada Nusantara, the subsidiary of publicly listed heavy equipment distributor PT United Tractors, according to a ministry document.
The projects are expected to enter the early transaction phase by the first quarter of 2021.
“In 2021, we will start the procurement process for six roads that span 208.7 km and a drinking water system project. If everything goes smoothly, we could execute the process for all listed projects,” he said in an online press conference on Monday.
The government has increasingly relied on the private sector to take part in developing, financing and managing the country’s ambitious infrastructure projects under the National Medium-Term Development Plan (RPJMN) to ease the strain on the state budget.
The National Development Planning Agency (Bappenas) has estimated that the country will need infrastructure investments worth $429.7 billion, equal to 6.1 percent of GDP, between 2020 and 2024.
