Govt Invites Private Companies to Fund Infrastructure Projects
22 August 2017 17:30 WIB
TEMPO.CO, Jakarta - Transportation Minister Budi Karya Sumadi has called on private companies to participate in some infrastructure projects that will be kicked off next year.
“I want projects, such as the Maros-Pare-pare railway, Bandung LRT, and Surabaya LRT projects, to be developed by private companies. We [the government] will contribute 30 percent of the project funds, and private companies will provide 70 percent of the funds,” Budi said in Jakarta today, August 22.
Read: Govt Targets Top 40 in World Infrastructure Competitiveness Index
Budi hopes that the government initiative to partly finance the projects would attract private companies to invest in them. He revealed that Transportation Ministry’s projects to be developed next year would be even bigger when compared to this year.
In the 2018 State Budget Draft, the government has allocated Rp48.2 trillion for the Transportation Ministry, increasing by 18 percent compared to that set in the Revised 2017 State Budget. However, Budi views that the fund will not be enough to finance next year’s infrastructure projects.
“Because we have a lot of initiatives, such as inner and inter-city mass transportation projects. Therefore, there is no other choice other than inviting the private sector to finance the infrastructure projects,” Budi said.
CAESAR AKBAR | SETIAWAN ADIWIJAYA
