Special treatment for businesses in KPBU scheme

Special treatment for businesses in KPBU scheme

The Public Works and Public Housings Ministry's Infrastructure Financing Director General Eko D Heripoerwanto (third right) stood at the stage with other speakers of a discussion panel in Jakarta, Thursday (Nov 14, 2019). ANTARA/Dewa Wiguna/GTM

The feasibility study must be conducted by the private sector. If they can complete it in one to two months, we will process the rest
Jakarta (ANTARA) - The Ministry of Public Works and Public Housings was committed on special treatment to the private sector under the Public-Private Partnership (KPBU) scheme, mainly in terms of funding infrastructure projects, the director general said here, Thursday.

Whenever the businesses take over the feasibility study of some infrastructure developments, the authority will secure the projects to be exclusive solely for the private sectors, the ministry's Infrastructure Funding Director General, Eko D Heripoerwanto stated in Jakarta. The statement indicates that the authority would not offer the infrastructure projects to other parties, Heripoerwanto remarked.

"The feasibility study must be conducted by the private sector. If they can complete it in one to two months, we will process the rest," he added at a discussion panel in Jakarta.

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He explained that the government and the strong business partnership was aimed at accelerating the completion of some infrastructure projects while creating a better funding scheme that excluded the state budget.

Heripoerwanto mentioned six infrastructure projects in the country that were initiated by the private sector. Among those were two that included building toll roads and setting up drinking water systems.

"The authority will immediately respond to any infrastructure project plans initiated by the businesses," he added.

According to the ministry's record, the state budget for 2020-2024 period allocates only Rp623 trillion for infrastructure development or 30 percent of the total cost of Rp2,058 trillion. Therefore, the ministry has launched the Public-Private Partnership or KPBU scheme to settle the deficits.

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