Private Sector Urged to Invest in Infrastructure

February 24, 2017, The Jakarta Post

Private companies taking part in infrastructure development is highly important because of the state’s limited funds for infrastructure projects, a government official has stressed.

Public Works and Housing Ministry secretary general Anita Firmanti said on Thursday that the government needed about Rp 800 trillion (US$60 billion) over the next five years, but the ministry’s allocation was only Rp 300 trillion.

She said the government had deregulated various licensing processes to facilitate the involvement of foreign investors in the infrastructure projects

“We have carried out deregulation to help investors easily obtain licenses,” Anita said as reported by tempo.co.

She said that in the last three years, infrastructure development had significantly increased, proven by the Indonesian infrastructure competitive index strengthening to 60th position in 2016 from 62nd in the previous year.

But she stressed that the role of private companies in infrastructure development was very important to ensure that the government achieved its infrastructure development target.

The involvement of state-owned enterprises in infrastructure projects had focused more on toll road construction, said Anita, adding that their roles had been expanded into other sectors such as clean water and waste treatment facilities

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