Kadin urges government to form central body concerning PPP projects

Kadin urges government to form central body concerning PPP projects

Deputy Chairperson of the Indonesian Chamber of Commerce and Industry for Construction and Infrastructure Erwin Aksa on the sideline of Focus Group Discussion in Jakarta on Wednesday (20/3/2019). (ANTARA/Aji Cakti)

Antara
Jakarta (ANTARA) - The Indonesian Chamber of Commerce and Industry (Kadin) has proposed to the Ministry of Transportation to establish a centralized body related to projects in transportation infrastructure under the Public Private Partnership (PPP) scheme.

"We hope that the transportation ministry would have a centralized body, so that it can focus on preparing and conducting tenders for PPP projects," Deputy Chairperson of the Indonesian Chamber of Commerce and Industry Erwin Aksa informed reporters in Jakarta on Wednesday.

He reasoned that in other sectors, such as the National Electric Company and the Ministry of Public Works and Public Housing, centralized bodies were already underway.

"I think in the Ministry of Transportation, each project is still managed by each director general, so it is still not centralized and focuses on its concentration," Aksa remarked.

Hence, Aksa expressed hope that a body would be set up to manage PPP projects in the Ministry of Transportation, such as TOD, train stations, airports, ports, and various other transportation infrastructure projects, which can proceed quickly with the process of preparation and implementation of tenders.

Raising awareness of the scheme in the construction of transportation infrastructure still requires further follow up, since the information available to business entities to find out about the existence of PPP projects is still viewed as being minimal.

"If it already exists, we also need to know how the actual mechanism of PPP implementation is at the Ministry of Transportation, so that it can serve as a reference for business entities," Aksa noted during the focus group discussion (FGD) held by Kadin.

Aksa stated that in addition to the PPP implementation mechanism, more needs to be known about the benefits availed by private developers for those keen on participating, including recognizing challenges and obstacles in implementing PPP projects.

The parties that play a role in the PPP project comprise the central and regional governments, as the regulators, responsible for cooperation projects (PJPK), as technical policy makers and business entities, acting as capital owners and implementers of PPP activities.

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