JAKARTA (TheInsiderStories) – The government is preparing 34 projects with a total value of US$25.8 billion or Rp344.64 trillion in the pipeline under non-budget investment financing scheme known as PINA, to domestic and foreign investors.
Of those projects, eight are considered as mega projects. They are a toll road in North Sumatra worth Rp13.4 trillion (PT Hutama Marga Waskita), two power plant projects worth Rp14.5 trillion (PT PJB), six power plant projects with a total value of Rp78.3 trillion (PT Indonesia Power), a Rp27.5-trillion power transmission project (PT PLN), a project to develop the second phase of Aero cityworth a total of Rp30 trillion (BIJB), a project to build Kulon Progo Airport in the Special Region of Yogyakarta worth Rp 6.7 trillion (PT Angkasa Pura I & PT PP), R80 Airplane worth Rp21.6 trillion (PT RAI), and Flores Integrated Area development valued at Rp13.5 trillion (Flores Prosperindo Ltd.).
Representing the Government of Indonesia, Minister of National Development Planning/
Head of the National Development Planning Agency, Bambang P.S. Brodjonegoro in the Annual Investment Meeting (AIM) Dubai 10 April, unveiled investment opportunities in the countey under the administration of President Joko Widodo.
“Indonesia is a potential market in Asia. Indonesia’s economic growth is [projected] to remain high and stable at 5,4 per cent in 2018. Up to now, investment from the United Arab Emirate in Indonesia ranks the 27th, covering the sectors of agriculture, hotels, transportation, industrial zones, and telecommunications,” Minister Brodjonegoro said.
He also described the PINA as an alternative financing in the development of public infrastructure in Indonesia. There are currently 19 sectors that can be initiated in public-private partnership scheme with the Government of Indonesia, encompassing the sectors of: connectivity, urban development, and social developnment.
The government expects PPP and PINA alternative financing scheme will be able to fill the financing gap in the infrastructure development of Indonesia.
The Ministry of National Development Planning/Bappenas has initiated the formation of the PPP Joint Office as a one-stop service and as a coordinating forum among the PPP stakeholders at the central government level, comprising seven Ministries/Government Agencies.
The PINA Scheme has three main functions. First, to facilitate projects for reaching the financial close phase and provide suggestions for project structuring and financing.
Second, to promote an infrastructure investment climate through the assessment of regulations and to accelerate the implementation creative financing instruments. Third, to pipeline for preparing the list of projects that are ready to be offered to investors and potential investors.
The PINA Centre that is currently in the Ministry of National Development Planning/Bappenas has the role of providing information on the progress of projects to investors in the context of realizing an investment climate that can promote investment activities in Indonesia.
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