JAKARTA (TheInsiderStories) – Indonesia’ finance ministry signed an agreement with 29 toll road business entities, 36 toll road sections and 35 memoranda of understanding with a total value of Rp13.1 trillion (US$922.54 million) for 2019, Lembaga Manajemen Aset Negara (LMAN), a state company under Ministry of Finance reported in Jakarta, Thursday (07/11).
While the revised allocation for the fiscal year 2018, the agency said, consisted of 24 toll road business entities, 30 road segments toll road for 27 memoranda of understanding with a total value of Rp15.03 trillion.
The signing was related to the return of land bailouts for toll road projects that were included in the national strategic project list. Previously, the agency had paid for the national strategic project bailout in the form of toll roads worth Rp34.73 trillion or 92.9 percent of the billed Rp37.4 trillion in the first semester of 2019.
“Through the agreements, the government must commit and serious in supporting and accelerating the process of refunding business entities through LMAN,” the report said.
Furthermore, the previous land acquisition fund has been paid by toll road business entity to support the infrastructure development acceleration of National Strategic Project. Fund payments are also based on finance and development supervisory agency verification.
Until July 5, 2019, the agency has paid a bailout of the national strategic project in the form of a toll road amount to Rp34.735 Trillion or 92.8 percent of which was billed to LMAN in the amount to Rp37.403 Trillion.
Meanwhile, the agency is targeting to accelerate bailouts return in 2019. Therefore to achieve this, collaboration from upstream to downstream is needed starting from the Land Management Committee, Ministry of Industry, Toll Road Regulatory Agency and Toll Road Business Entity and Finance and Development Supervisory Agency to fulfill and guarantee the quality and completeness of documents as payment terms.
Acceleration of land acquisition must prioritize good state financial governance, namely by maintaining the legality and accuracy of documents. So far, the Ministry of Finance and its staff have sought to improve governance and funding mechanisms in several ways.
The first is to strengthen regulations and procedures related to land acquisition funding. Funding flexibility is a strategic thing to support the fulfillment of land needs, however, accountability and accountability of the process and documents must be maintained.
“Strengthening regulations that are prudent, clear the flow of accountability, easy to implement and adjustments to policy developments that can be done in stages,” the document explained.
The second method is to improve the process and accuracy of land acquisition documents from upstream to downstream, which is continuously being improved. The use of information technology is possible to speed up the process and the efficiency of processing time.
The third way is to increase the synergy between relevant agencies from the planning, implementation, and payment of compensation for land acquisition. The agency cannot make payments and refunds of business entities without the existence of accurate, appropriate and complete data and documents.
Written by Willy Matrona, Email: firstname.lastname@example.org