Sri Mulyani Offers Privates to Finance Infrastructure Projects

TEMPO.CO, Jakarta - Finance Minister Sri Mulyani Indrawati urged private parties to participate actively in infrastructure development.

The government is offering public-private partnerships (PPP) to privates interested to take part in infrastructure projects. 

Finance Minister Sri Mulyani said through this scheme, the Ministry will provide and prepare project facilities, feasibility support, and infrastructure guarantee to support the PPP financing.

Read: Govt Invites Private Companies to Fund Infrastructure Projects

In the scheme, the returns on investment (RoI) of the KPBU projects are made through availability payments.

"Policy assurance and the government's commitment, including in terms of tariff and the certainty of investment return, are very important," said Sri Mulyani.

The government has 245 national strategic projects (PSN) that includes 15 infrastructure sectors as well as electricity and aircraft industry programs, with an investment value of Rp4,417 trillion.

Read: Greater Role for Private Sector in Infrastructure Development

The Priority Infrastructure Procurement Acceleration program director Reiner Haryanto said that 147 PSN projects are currently under construction. Nine projects are in the transaction stage, while 87 are in preparation.

The total investment needed to actualize all projects is estimated to reach Rp4,417 trillion. Project funds are expected to come from a variety of sources, including 13 percent from the state and regional budgets, 28 percent from SOEs and ROEs, and 59 percent from private financiers. 

VINDRY FLORENTIN | JENNY WIRAHADI | ALI N.Y