The four projects are the Lematang-Panjang Port Toll Road in Lampung, the Rengat-Pekanbaru Toll Road in Riau, the Batam-Bintan Bridge in the Riau Islands, and the Semarang Port Toll Road.
"The four are still in preparation for the LVC scheme, which is expected to enrich the project feasibility studies," the ministry's Director of Road and Bridge Infrastructure Financing, Reni Ahiantini, stated here on Wednesday.
The government has so far launched two creative financing schemes for infrastructure development, namely the Limited Concession Scheme (LCS) and the Land Value Capture (LVC).
This LVC scheme is a region-based funding alternative that allows infrastructure projects to be funded from added values, which are generated by the central government, local government, and private parties.
This scheme aims to create a cycle of benefits from infrastructure projects for the surrounding areas.
"This may be one instance where the Public Private Partnership (PPP) will be collaborated with LVC. The three schemes (LCS, LVC, and PPP) will not run alone in the toll road (projects)," Ahiantini explained.
Meanwhile, the Finance Ministry's Director of Management on Government Support and Infrastructure Financing (PDPPI), Bramantio Isdijoso, stated that with the LVC, the government has more financing alternatives for building infrastructure.
In addition, this collaboration will help ease the burden on the state budget in funding infrastructure projects.
"There are more options on how to build infrastructure, and the synergy between the three schemes is something that we must always strive for. This means that completed assets must generate more liquidity," he explained.
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Translator: Bayu S, Kenzu
Editor: Azis Kurmala
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