JAKARTA (TheInsiderStories) - The Indonesia’s Public Works and People’s Housing Ministry (PUPR) on Wednesday (Jan. 6) signed project contracts to be carried in 2016. The signing of the contracts was witnessed by President Joko Widodo and a number of cabinet ministers.
PUPR Minister Basuki Hadimuljono said the total projects signed today reached 644 packages valued at Rp8.81 trillion. Of the 644 projects, 597 projects valued at below Rp50 billion which are expected to stimulate economic activities in the regions across the nation. the remaining 47 project packages were worth above Rp50 billion.
During the contract signing, the President also held conference call with governors and regency heads in a number of regions, conveying messages to the regional governments to speed up execution of infrastructure projects.
“The project contracts worth Rp8.81 trillion represents 10.84 percent of total expenditure of the PUPR Ministry in 2016,” Minister Basuki said.
He said the projects cover a number of sectors. There are 191 projects in natural resources industry worth Rp811.41 billion to support the food security such as clean water projects in a number of cities, including Sorong Regency in West Papua, rehabilitation of irrigations in Batang Anai I covering 6,764 hectares in Padang Pariaman, West Sumatera.
Large portion of the projects are road and bridges totaling 436 projects worth Rp7.93 trillion, includig the development of national road in border areas in north Kalimantan as well as Trans-Papua.
In housing projects, the Ministry will develop 11 packages of projects worth Rp68.87 billion, including the development of water supply sector project (SPAM) IKK in Jatinangur (ITB) phase 2, SPAM project in Gunung Seriang in West Bulungan and SPAM project which is linked with Mentarang in Malinau Regency, Kalimantan.
The Ministry will also carried out people’s housing projects including to improve human resources worth Rp4.8 billion.
Meanwhile, as an effort to speed up the development of infrastructure projects under auspices of the PUPR Ministry, the ministry has conducted tender on 10,752 packages of projects late last year worth Rp73.41 trillion.President Joko Widodo has declared 2016 as a year to accelerate infrastructure projects. Infrastructure has become a priority of the government. A number of projects that have been delayed last year, will be accelerated this year.
Therefore, the economic growth target of 5.3 percent set in the 2016 State Budget will be attained, higher than the target of 4.7 percent in 2015.
Some economists have said the economic growth target of 5.3 percent is within reach, assuming that the government speeds up the realization of its expenditure, accelerates infrastructure projects and boost investment.
On Tuesday, the National Investment Coordinating Board (BKPM) issued statement that it expects investment to rise to Rp594.8 billion in 2016, up 13.5 percent from 2015 estimation. In the nine months to September, investments have reached Rp400 trillion, up 17 percent from the same period in previous year.
BKPM is calculating the investments in the last quarter of 2015. (*)