"In 2015, the public-private cooperation scheme (KPS) will be realized. Even though the (state) budget is expected to increase later, it will still be insufficient (to solely support infrastructure development)," he stated at the Kompas 100 CEO Forum.
The minister added that the government would play a bigger role in developing basic infrastructure, but large-scale infrastructure development projects, including those of seaports, airports, oil refineries and power plants, will be referred to public-private cooperation due to the huge funding they require.
"Hopefully, the KPS will come into cooperation by next year with its first project, the 2x100 megawatt PLTU Batang power plant. It was scheduled to start two years ago but was delayed due to land clearance issues. Once the license issue is settled and the land clearance problem is resolved, the implementation of the KPS project will be smoother," he affirmed.
Brodjonegoro also noted that he hoped other ministers, especially the public works and transportation ministers, encourage their staff to embrace the KPS scheme rather than utilize funds from the state budget.
He pointed out that officials from the two ministries had, so far, preferred budget-financed projects.
"If projects are based on a state budget, the control is in my hand. I determine procurement and the winning bidder and supervise the project from A to Z. The KPS scheme, however, is different. KPS is a public-private partnership, but the government is not the sole owner here. It must cooperate with its private partner, must supervise what the partner is doing, and support it whenever required," he explained.
The minister further remarked that a change in mindset was needed to help implement the acceleration of infrastructure development in the country. (*)
Editor: Heru Purwanto
Copyright © ANTARA 2014
