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Infrastructure Projects Must Entrusted to the Private Sector

by Sebastianus Epifany Friday, December 9, 2016 - 15:27

JAKARTA -  Minister of National Development Planning (PPN)/Head of Bappenas Bambang Brodjonegoro confirms that commercial infrastructure projects which are burdening the state budget has three main effects, namely the erosion of the state budget funds, the transparency of the implementation of the project is difficult to be maintained, and State-Owned Enterprises (SOEs) are less developed. Therefore, he encourages the infrastructure projects to be entrusted to the private sector.

"The ability of the private sector to manage infrastructure would be limited because the government wants to control all of them. In fact, we have a lot of projects and it could be worked by the private sector," said Bambang as reported from, today (12/08/2016).

Minister Bambang suggested that the Ministry/Institution hands over the projects to the business entities because infrastructure projects are still profitable for the enterprise. Ministry/Institution just being a person in charge for the cooperation projects (PJPK).

"We want the private sector to be the significant players. With Indonesia growth is still good, the infrastructure business would be a promising. Unfortunately, that is only absorbed by the state budget. In fact, the state budget is only for basic infrastructure. It is better to trust it to the private sector if the infrastructure (projects) can be done by private," he explained.

Bambang also emphasized the importance of infrastructure financing scheme of the non-state budget in encouraging the development of infrastructure in various areas. Therefore, the private sector has a very important role in various development projects.

"Where the scheme off-budget financing of infrastructure, it will become an integral part of and we also can directly encourage projects that are 100 percent made by private or state-owned enterprises without any intervention from the state budget," he stated.

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