Ada Pertanyaan? Hubungi Kami 
Ada Pertanyaan? Hubungi Kami Fitri Novia Heriani, Mahinda Arkyasa
Infrastructure development in Indonesia faces many concerns including financial issues, as well as lack of commitment, capacity, and capability of parties involved in the process.
Bastari Pansi, Director of Public-Private Partnership at the National Development Planning Agency (Bappenas), explained that because of the abovementioned concerns, many investors are reluctant to put their funds into infrastructure projects.
“Unclear project planning and preparation are further reasons why investors are not interested,” Bastari said at Hotel Borobudur, Jakarta, Monday (3/12), during a discussion titled “The Need for Infrastructure Financing Solutions in Support of Acceleration and Expansion of Economic Development”.
Another issue that hinders infrastructure development is the overlap between laws and regulations. Bastari argued that there are several laws and regulations that need to be harmonized and clarified.
For example, Presidential Regulation No. 67 of 2005 on Public-Private Partnership in Infrastructure Procurement (PPP Regulation), as amended several times, the last being Presidential Regulation No. 13 of 2010, and Government Regulation No. 6 of 2006 on Management of State/Regional Owned Assets (Assets Regulation).
Under the PPP Regulation, private entities are allowed to use state-owned assets for infrastructure projects. Meanwhile, Assets Regulation does not provide any stipulation on such issue.
Latif Adam, economics expert at the Indonesian Institute of Science (LIPI), shared Bastari’s concerns regarding investors. Latif explained that infrastructure projects in Indonesia do not provide any government assurance or compensation to investors if a project happens to be halted.
Latif also stated that the cost of repairing and developing infrastructure will be massive. Not only that, most of the funds will be allocated for consultant fees, planning costs, and project fees.
In order to improve infrastructure development, Latif urged the government to harmonize relevant laws and regulations, as well as strengthen the institution that handles PPP and establish a team to manage PPP document preparation.
In terms of financing, Saritaon Siregar, Head of the Indonesia Investment Agency (PIP), said that PIP should be considered as an option for financing infrastructure development, because it has a strategic role in accelerating infrastructure development projects.
“PIP offers alternative solutions such as loans for state-owned companies, regional governments, or private entities in order to accelerate infrastructure project development,” Saritaon explained.
Saritaon also said that PIP has funded several infrastructure development projects in Indonesia. However, he refuses to provide detailed information regarding the projects.
In general, PIP’s funds, as Saritaon explained, are used for projects in public service sector and economic activities, including hospitals, traditional markets, roads, utilities, and seaports.
(hot/jt)
Fitri Novia Heriani, Mahinda Arkyasa
Infrastructure development in Indonesia faces many concerns including financial issues, as well as lack of commitment, capacity, and capability of parties involved in the process.
Bastari Pansi, Director of Public-Private Partnership at the National Development Planning Agency (Bappenas), explained that because of the abovementioned concerns, many investors are reluctant to put their funds into infrastructure projects.
“Unclear project planning and preparation are further reasons why investors are not interested,” Bastari said at Hotel Borobudur, Jakarta, Monday (3/12), during a discussion titled “The Need for Infrastructure Financing Solutions in Support of Acceleration and Expansion of Economic Development”.
Another issue that hinders infrastructure development is the overlap between laws and regulations. Bastari argued that there are several laws and regulations that need to be harmonized and clarified.
For example, Presidential Regulation No. 67 of 2005 on Public-Private Partnership in Infrastructure Procurement (PPP Regulation), as amended several times, the last being Presidential Regulation No. 13 of 2010, and Government Regulation No. 6 of 2006 on Management of State/Regional Owned Assets (Assets Regulation).
Under the PPP Regulation, private entities are allowed to use state-owned assets for infrastructure projects. Meanwhile, Assets Regulation does not provide any stipulation on such issue.
Latif Adam, economics expert at the Indonesian Institute of Science (LIPI), shared Bastari’s concerns regarding investors. Latif explained that infrastructure projects in Indonesia do not provide any government assurance or compensation to investors if a project happens to be halted.
Latif also stated that the cost of repairing and developing infrastructure will be massive. Not only that, most of the funds will be allocated for consultant fees, planning costs, and project fees.
In order to improve infrastructure development, Latif urged the government to harmonize relevant laws and regulations, as well as strengthen the institution that handles PPP and establish a team to manage PPP document preparation.
In terms of financing, Saritaon Siregar, Head of the Indonesia Investment Agency (PIP), said that PIP should be considered as an option for financing infrastructure development, because it has a strategic role in accelerating infrastructure development projects.
“PIP offers alternative solutions such as loans for state-owned companies, regional governments, or private entities in order to accelerate infrastructure project development,” Saritaon explained.
Saritaon also said that PIP has funded several infrastructure development projects in Indonesia. However, he refuses to provide detailed information regarding the projects.
In general, PIP’s funds, as Saritaon explained, are used for projects in public service sector and economic activities, including hospitals, traditional markets, roads, utilities, and seaports.
(hot/jt)