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Government claims 86 infrastructure projects being developed, 139 in planning stage


Senior Minister Darmin Nasution (middle) - Photo by Cabinet Secretary

JAKARTA (TheInsiderStories) – The government claims that 86 infrastructure projects out of 225 projects set out in the government’s National Strategic Priority program are already under development, while the remaining 139 projects are still in the planning stage.

Coordinating Minister for Economic Affairs Darmin Nasution stressed that these strategic and major projects are being developed in cooperation with ministries and government agencies which are under the auspices of the office of Coordinating Ministry for Economy.

Minister Darmin Nasution said the 225 projects and several power plant projects, which the government counted as strategic projects, must be accelerated so that they can be completed in time. These strategic and priority projects are stipulated in Presidential Decree (Decree) No.3 / 2016 and Presidential Instruction (Instruction) No.1 /2016.

In term of location, out of these priority projects, 89 projects are located on Java Island, 46 in Sumatra, 28 in Sulawesi, 24 in Kalimantan, 16 in Bali and West Nusa Tenggara, 13 in Maluku and Papua, and 10 in other provinces.

Minister Nasution also said that as for the 35,000 MW power plant project, 17,800 MW of power plant projects are ready for construction. The project owners have signed contracts to develop these power projects.

He said the government expects independent power producers (IPPs) expects to sign contract to develop 15,500 MW of the power plant projects later this year. The state electricity company PT Perusahaan Listrik Negara (PLN) is expected to sign construction contract to develop 3,750 MW of power plant projects.

He further said the President had highlighted that the funding schemes for the projects should be decided as soon as possible. There should be an immediate decision on the which projects are to be financed by the State Budget, state-owned enterprises, provincially owned firms, private companies or public-private partnership (PPP).

“It will be discussed by technical ministries, as well as the Finance Ministry and Bappenas (National Development Planning Agency),” Nasution said.

Nasution added that as many as 52 projects of national strategic project are related to the railroad tracks, 19 train-related projects, 17 airport projects; and 13 port projects, 10 water projects, 60 dams, and others

Cabinet Secretary Pramono Agung said that President Joko Widodo had instructed the National Development Planning Ministry and the National Investment Coordinating Board (BKPM) to establish financing schemes and business plans for the strategic projects.

President Joko Widodo (Jokowi) stressed that the priority projects will help drive the country’s economy, both on national and regional level. These projects could also create jobs and spur multiplier effects.

The President has ordered the National Development Planning Minister Sofyan Djalil and the Head of BKPM Franky Sibarani to create a detailed business plan for each national strategic projects. (*)

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Source: The Insiderstories
Government claims 86 infrastructure projects being developed, 139 in planning stage

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