Government Provides Capital Injection for Infrastructure Projects

TEMPO.CO, Jakarta - Coordinating Economic Minister Darmin Nasution hoped that an allocation of a state capital injection (PMN) worth Rp 20 trillion (USD 1.5 billion) for a public service agency (BLU) that deals with national asset management (LMAN) will help with national strategic project developments. Capital injections have been parts of the 2017 State Budget focused land procurements for strategic products.

Over time, land procurement has been one of the biggest challenges in infrastructure development.

"By allocating the fund, the government believes and hopes that national strategic projects that are often hampered would be executed in accordance with the targets. It's a part of the government's commitment," Darmin said in Jakarta on Tuesday, April 4, 2017.

Based on the 2015-2019 National Medium-Term Development Plan (RPJMN), Darmin explained, the government is committed to reducing logistics costs from 23.5 percent to 19 percent of the gross domestic product (GDP).

In a bid to achieve the target, the government will build 2,650 kilometer of roads, 3,259 kilometers of railways, 24 ports and 15 new airports, as well as provide 35,000-MW electricity, clean water, and broadband services.

Darmin revealed that the government has issued Presidential Regulation No. 102/2016 on land procurement for public interest in a bid to realize national strategic project developments.

BISNIS.COM