Ministry of Transportation Expands KPBU Scheme for the Transportation Sector

  • Indonesia’s Ministry of Transportation ("Ministry") is currently in the process of boosting creative funding for the development of national transportation infrastructure through the rolling out of a number of cooperation schemes that are being initiated in conjunction with various domestic and international parties. In this regard, the Ministry has affirmed that creative funding is being pursued through Public - Private Partnership Schemes (Kerjasama Pemerintah dengan Badan Usaha – "KPBU") that are being initiated in areas where gaps remain between the need for infrastructure investment and the funding available through the regional expenditure budget (APBN).
  • The Minister of Transportation ("Minister") has also specifically stated that 17 KPBU projects are currently underway. Said projects comprise two air transportation projects, four sea transportation projects, nine land transportation projects and two rail projects. Examples of the above-listed projects include: 1) Development of the KA Makassar - Parapare (142km) railway, which has an investment value of up to US$ 67.89 million; 2) The port of Patimban, which has an investment value of up to US$ 1.09 billion; and 3) The port of Anggrek, which has an investment value of up to US$ 71.49 million.  
  • The Ministry has made a number of efforts to increase the implementation of KPBU projects within the transportation sector, which include improving the capabilities of transportation-related human resources, the introduction of best practices for KPBU projects and gradual evaluations aimed at establishing a priority scale for new developments. (ANT)
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  • Indonesia’s Ministry of Transportation ("Ministry") is currently in the process of boosting creative funding for the development of national transportation infrastructure through the rolling out of a number of cooperation schemes that are being initiated in conjunction with various domestic and international parties. In this regard, the Ministry has affirmed that creative funding is being pursued through Public - Private Partnership Schemes (Kerjasama Pemerintah dengan Badan Usaha – "KPBU") that are being initiated in areas where gaps remain between the need for infrastructure investment and the funding available through the regional expenditure budget (APBN).
  • The Minister of Transportation ("Minister") has also specifically stated that 17 KPBU projects are currently underway. Said projects comprise two air transportation projects, four sea transportation projects, nine land transportation projects and two rail projects. Examples of the above-listed projects include: 1) Development of the KA Makassar - Parapare (142km) railway, which has an investment value of up to US$ 67.89 million; 2) The port of Patimban, which has an investment value of up to US$ 1.09 billion; and 3) The port of Anggrek, which has an investment value of up to US$ 71.49 million.  
  • The Ministry has made a number of efforts to increase the implementation of KPBU projects within the transportation sector, which include improving the capabilities of transportation-related human resources, the introduction of best practices for KPBU projects and gradual evaluations aimed at establishing a priority scale for new developments. (ANT)
......

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