The government is ready to offer projects in the maritime sector worth US$91.1 billion next year in order to support President Joko Widodo's administration's plan to make Indonesia a global maritime axis - Photo: TheInsiderStories

JAKARTA (TheInsiderStories) – The government is ready to offer projects in the maritime sector worth US$91.1 billion next year in order to support President Joko Widodo’s administration’s plan to make Indonesia a global maritime axis, officials said today (10/02). The project is ready to be offered openly, both for local and foreign investors.

“From the maritime sector, we are ready to offer a number of projects worth $91.1 billion. Not only to China but open to other countries, there are Japan and Korea. We are also open to local investors,” Deputy Coordinating Minister for Maritime Infrastructure Coordinating Affairs Ridwan Djamaluddin told at the National Seminar Infrastructure Towards Indonesia Going Forward 2024 in Jakarta.

Djamaluddin added that infrastructure development will continue to connect with people’s production zones, small industrial zones, Special Economic Zones, and tourism areas.

To realize the plan, the government, he said, actively invites investors to invest in Indonesia, especially in the maritime sector.

“There are no more investment barriers because this is the key to opening jobs. The government continues to carry out bureaucratic reform starting from the structural side, the speed of service, granting permits,” he said, adding that the use of a focused and targeted State Budget would also become the government’s concern for the next five years.

The maritime sector is still the main agenda of the government, he went on, with 10 development of tourism destinations and 4 priority destinations, as well as 14 industrial areas outside Java to be completed within that timeframe.

He further revealed that the government is still working to increase the added value of mineral resources in the Morowali Industrial Estate, the largest nickel pig iron facility with a total investment of $7.5 billion. Currently, the total production of 4-5 million tons of stainless steel and carbon steel can be increased to 10 million tons.

“The production will be used for the domestic industry to reduce imports. The project has contributed Rp1.7 trillion in taxes and royalties and exported more than $1 billion in 2013-2017,” he explained.

On the same occasion, Coordinating Minister for the Economy Darmin Nasution said the government continues to encourage the acceleration of the development of a number of national strategic projects which currently consist of 223 projects and 3 programs with an investment value of Rp4,180 trillion.

“From 223 strategic projects, the government has also set 37 priority projects with a total investment value of over Rp2,500 trillion and their implementation is monitored regularly by the Committee for the Acceleration of Priority Infrastructure Provision,” he said.

Accumulatively, as of September 2019, there were 81 national strategic projects that had been completed and were operating with an investment of up to Rp390 trillion. In addition, there are 27 projects, 1 electricity program, and 1 economic equality program which are under construction and partially operational.

Meanwhile, 22 projects are under construction and will be operational in 2019, and 80 projects are under construction and will be operational after 2019. A total of 129 projects and 2 programs above have an investment of Rp2,860 trillion.

The impact of infrastructure development has now reaped results. The construction sector is among the five highest sectors contributing to GDP and Indonesia’s economic growth at 5.07 percent.

In this context, the three government strategies to accelerate infrastructure are the implementation of the One Map Policy, the strengthening of the Committee for the Acceleration of Priority Infrastructure Provision, and the Policy to encourage private participation in infrastructure development.

Written by Lexy Nantu, Email: lexy@theinsiderstories.com