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Greater Role for Private Sector in Infrastructure Development

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20 August 2017 15:06 WIB

TEMPO/Prima Mulia

TEMPO.CO, Jakarta - Coordinating Minister for the Economy Darmin Nasution said that infrastructure development remains the government’s priority program in 2018 although spending for infrastructure in the 2018 state budget draft will only slightly increase by 5.6 percent compared to that this year into Rp409 trillion.

Darmin also said the government next year would increase greater roles of the private role in infrastructure development.

"The government will formulate more policies so that the private sector plays a bigger role in infrastructure development in Indonesia,” Darmin said in Jakarta on Sunday.

Darmin added that the government would push for the private sector to play a bigger role by implementing Enterprises and Government Cooperation (KPBU) scheme. With many projects implemented by state-owned enterprises, Darmin said the government would also invite the private sector to manage infrastructure projects.

Darmin also said that that the Government hopes that development infrastructure would stimulate economic growth expected to reach yang 5.4 percent in 2018 and reduce gaps among regions. In the 2018 State Budget draft, the government allocates Rp409 trillion for infrastructure spending from the total spending of Rp2,204.4 trillion.

The funds will be used to build roads and bridges, housing complexes, railways, airports as well as information and telecommunication infrastructures.

CAESAR AKBAR|SETIAWAN ADIWIJAYA




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