Govt Mulls Private Sector Involvement in Sea Toll Road Project
30 August 2016 09:58 WIB
TEMPO.CO, Jakarta - The government is exploring the possibility of giving a role for private sectors to operate scheduled freight liners to lessen the government's burden of sea toll road subsidy.
The government has only provided the subsidy for six routes of the freight liners operated by state-owned shipping company PT Pelni.
Secretary General of Transportation Ministry Sugihardjo admitted that sea toll road subsidy heavily burdens the government. The government is obliged to provide subsidy and procure the ships in the sea toll road project.
To lessen the government's burdens, the Transporation Ministry will join hands with private sectors to realize the program taking into account the most appropriate subsidy scheme.
“We have been thinking, what if the subsidy is given with a long-term contract to attract the private sectors to invest in infrastructure. We will then determine its annual depreciation,” he said Friday, August 26, 2016, as quoted by Bisnis.com.
Therefore, the government is mulling over establishing a subsidy scheme wherein private sectors are provided with operational funds. Whereas the fleet procurement will be left entirely to private sectors.
He said that interest shown by private sectors to participate in sea toll road program has prompted the government to mull the plan of involving private sectors in the program.
“If the private sector [is involved], we will find out if it would be alright to make a direct appointment since tender is needed if the private sector is involved. Therefore, we need time, and so on. Basically, we are all ears,” he said on Sunday, August 26, 2016.
He expressed that the Transportation Ministry will meet the Public Policy Committee to find the best subsidy scheme.