Bappenas expects more private involvement in infrastructure projects

Jakarta (ANTARA News) - The National Development Planning Agency (Bappenas) expects more private companies to be involved in financing a number of infrastructure projects under the Non-Budget Investment Financing (PINA) scheme or the Government - Private Companies Cooperation (KPBU) scheme.

"We hope by next year, there will be more investors in infrastructure development priority projects, especially under the schemes of PINA or KPBU," Bappenas Head Bambang Brodjonegoro remarked, when opening Indonesia Infrastructure Week (IIW) 2017 in Jakarta, on Wednesday.

The infrastructure projects need Rp4,769 trillion (about US$352.7 billion), based on the National Medium Term Development Plan 2015-2019.

Out of the total budget, the government budget is estimated to be only Rp1,978.6 trillion (41.3 percent), the state-owned enterprises to be at Rp1,066.2 trillion (22.2 percent), while the rest Rp1,751.5 trillion (36.5 percent) is expected to be from the private sector

In the PINA scheme, there are 16 projects that have been in the identification stage till now, with a total value of Rp211.3 trillion, and one project in preparation stage, worth Rp13.4 trillion.

Sixteen PINA projects in the identification phase include the construction of the R80 turboprop aircraft by PT RAI, 10 power plant projects by PT PJB, Flores Islands regional development by Flores Prosperindo Ltd, diesel-gas power plant development in Pesanggaran, Bali, airport development in Kulon Progo, Yogyakarta, as well as Kertajati Airport and two aerocity development projects in West Java.

One PINA project in the preparatory stage is the toll road construction by PT Hutama Marga Waskita.

"In 2017, we are targeting PINA financing of $1.5 billion, while in 2018, we expect $ 3 billion under PINA scheme," Bambang remarked.

Meanwhile, till date, there are 12 projects in construction phase under KPBU scheme, six projects in transaction stage, 27 projects in preparatory stage, as well as one project in financial close phase.

In 2018, the government will offer 10 Quick Win Projects, such as Nambo regional waste management project, Probowangi Toll Road, Bandar Lampung Drinking Water Supply System, Serang Panimbang Toll Road, Jakarta-Cikampek Toll Road, Jatiluhur Drinking Water Supply System, West Semarang Drinking Water Supply System, Suramadu Toll Bridge, Pekanbaru Drinking Water Supply System, and Sidoarjo hospital project.

Bambang hoped that many investors will be involved in those projects.

"The important thing is there are 10 Quick Win Projects 2018. I hope these projects attract the Indonesian Chamber of Commerce and Industry (Kadin) and the investors," Bambang revealed.(*)