Coordinating Minister for Economic Affairs, Darmin Nasution, after a limited meeting for Evaluation of Strategic Projects at the Presidential Office in Jakarta on Monday, said it was decided that these projects, currently in the middle of planning process, need to clarify their financial sources.
Of the 225 strategic projects, 86 are underway, while the rest are still in the planning process.
According to Darmin, President Joko Widodo underlined during the meeting that the financing scheme for 139 projects was to be decided, while the rest of the 86 projects were underway and are to be continued.
"Which of these projects are to be financed by the state budget, and which ones by state enterprises, private institutions or are to be set up in cooperation with private governmental bodies, needs to be decided soon," he stated.
Cabinet Secretary Pramono Anung added that the President had ordered the Minister of Economic Affairs, National Planning Board and Capital Investment Coordinating Board to make detailed plans for these projects, lest all of these have to be financed by the state budget.
"If a private institution shows interest in a project, the Patimban harbor for instance, then they can cooperate with the government," he pointed out. The Patimban harbor in Subang , W Java, is in the process of being offered to investors.
Darmin said about 225 projects are deemed strategic because they follow the national strategic guidelines, vital to the economy. Furthermore, there is a government study regarding the advisability of these projects.
He explained that the projects deemed strategic included 52 railroads, 19 rail design projects, 17 airports, 13 harbors, 10 clean water projects and 60 dams.
Of the total 225 projects, 46 are located in Sumatra, 16 are scattered across Bali and Nusa Tenggara, 13 between Maluku and Papua while Kalimantan has 24 projects, and Sulawesi 28 projects. The rest are in other provinces.
These planned projects are in addition to the 35,000 mega watt project, currently being handled by the government. Projects to generate 17,800 mega watt of power have been signed in 2016.
Darmin hoped that these strategic projects will prompt growth amid the economic slowdown, opening new employment opportunities.(*)
Editor: Heru Purwanto
Copyright © ANTARA 2016
