JAKARTA (Yosefardi) – Until 2019, Indonesia needs Rp4,796 trillion funds for infrastructure development. As the government is only able to fund 30% of project, it is seeking alternative funding through the Government Enterprise Cooperation (KPBU) or Public Private Partnership (PPP).
“We have KPBU scheme. It is a solution to embrace the challenge and responsibility of private parties. This scheme is expected to contribute about 36% of the total infrastructure needs until 2019,” said Director General of State Asset Management Sonny Loho during a press conference at the Ministry of Finance, Jakarta on Monday (October 19).
Ministry of Finance, according to him, has provided a number of fiscal incentives to attract investors. “Fiscal incentives to make PPP projects is more bankable, or fiscally feasible for investors. It can be project development fund, viability gap fund, and a guarantee by PT PII,” added Sonny.
PT PII will be one door manager for underwriting business infrastructure. There are some on going infrastructure projects using the PPP scheme. The largest one is power plant Batang, Central Java. “It has been groundbreaking and waiting for financial closing,” he said. Batang power plant is the first large-scale infrastructure project using PPP scheme and guarantee by PT PII.