Toll Road - Photo by PT Nusantara Infrastructure Tbk

JAKARTA (TheInsiderStories) – Indonesia’s Ministry of Public Works and Housing has set a target to complete auctions on 9,700 infrastructure projects package, worth for Rp82 trillion (approx. US$5.9 billion) by this April.

From the total work packages already auctioned, as many as 2,680 work packages to date have been under contract with private and public contractors, according to Ministry Official.

Various developments in Indonesia, including the electricity grid project, roads, railways, airports, dams and ports, require additional sources of funding because the state budget can only cover Rp 1,500 trillion ($112 billion) of the estimated total of Rp 4,900 trillion for the 225 national strategic projects proposed by the president until 2019.

Indonesia’s government has set an impressive 2018 budget of some $30.72 billion to develop infrastructure in the country. The funding will be split between the Ministry of Public Housing and Works, the Ministry of Transportation and for the special allocation fund. The Indonesian Government is aiming to boost economic growth during 2018 through its infrastructure development program.

Indonesia’s Ministry of Public Works and Housing has already stated plans to construct 856 km of new roads. The other programs of the Ministry of Public Works and Housing will be maintenance and improvements to the country’s 46,000 km national road network as well as construction work for 25 km of toll roads and the building of 7.86 of new bridges in total.

Previously, President Joko “Jokowi” Widodo has called for a review of the country’s strategic projects to evaluate which projects can be implemented and which cannot.

The strategic projects are based on Presidential Regulation No. 3/2016 and are to receive special treatment such as faster land acquisition and quicker issuance of business permits.

Initially, the government introduced 225 strategic projects, but the number was revised to 245 under Presidential Regulation No. 58/2017.

According to data from the Priority Infrastructure Development Acceleration Committee (KPPIP), as of Dec. 2017, 26 strategic projects had been completed — 20 projects were completed in 2016 with the other six projects completed last year.

Written by Elisa Valenta, email: elisa.valenta@theinsiderstories.com

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