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Jakarta Post

Private sector infrastructure funding needs boost as SOEs overleveraged: World Bank

  • Mardika Parama

    Jakarta

Jakarta   /   Fri, July 3 2020   /  01:00 am
Top priority: The construction site of an LRT station is seen on Jl. Rasuna Said in South Jakarta on Tuesday. State-owned developer Adhi Karya said it would prioritize several infrastructure projects amid the COVID-19 pandemic.(JP/R. Berto Wedhatama)

The World Bank has urged the Indonesian government to improve public-private partnership (PPP) financing schemes to attract more private capital that could fill the government’s budget shortage on infrastructure projects. “Mobilizing capital for financing infrastructure has been challenging for some sectors, particularly water resource management, where the infrastructure has been considered to be public assets and private-sector financing hasn’t been successful to date,” said World Bank energy coordinator Stephan Garnier. Garnier said Thursday during a webinar called Indonesia Public Expenditure Review 2020: Spending for Better Results that inadequate project planning may have also dampened interest from the private sector to invest in transportation. The government has increasingly been relying on the private sector to take part in developing, financing...