The Indonesian government has established an agency to provide a guarantee for high-risk infrastructure projects, in hopes that more private companies will be involved in infrastructure development, particularly relating to national connectivity, said Finance Minister Sri Mulyani.
“The government has made various schemes to convince and encourage private companies to invest in infrastructure projects,” the finance minister said recently, according to a report by Antara News.
Mulyani stated that the government has established PT Penjaminan Infrastruktur Indonesia (PT PII), which is assigned to extend guarantees for high-risk infrastructure projects.
“Infrastructure investments are usually long term and over a period of [time for] the government; therefore, PT PII plays a role in ensuring that investments as well as benefits, as stated in the agreement, will [be] returned,” he said.
According to him, PT PII has been actively involving the private sector in both infrastructure planning and implementation to make companies more confident about investing in infrastructure.
PT PII president director Armand Hermawan added, “Infrastructure development is very important to unite the nation. The availability of infrastructure is expected to impact economic and social growth.”
He said PT PII has provided guarantees for 13 infrastructure projects under the Government Cooperation with Business Entities scheme.
The projects include a steam power plant project; eight toll road projects; and project packages in the West, Central, and East regions. These have a total investment value of around IDR141 trillion (US$10.4 billion).
“The 13 projects are expected to be references for local governments and the private sector that investment in infrastructure is quite convenient and profitable,” Hermawan said.
Samabusa Seaport renovation
Meanwhile, the government plans to develop further Samabusa Seaport, located in Nabire District, Papua Province in Indonesia, with the help of private companies, according to President Joko Widodo.
“Its cargo port will be enlarged in 2018, and its passenger terminal will also be enhanced in cooperation with the private sector,” the President was quoted as saying by Antara News during a recent visit to the seaport.
The seaport is crucial for entry cargo not only for Nabire District but also for the six other districts of Intan Jaya, Paniai, Deiyai, Dogiyai, Waropen, and Membrano Raja.
“In future, this seaport should be able to fully serve six other districts surrounding Nabire,” the Chief Executive noted.
“There are a lot things that we need to do, and we will complete it one by one. It is good if the private sector is willing to come here and if they bring their own equipment,” he noted.
The head of state said he hopes that the seaport would not only serve entry cargoes but also exports of local products, such as fish, wood, and oranges.
Photo: Bindydad123
