Ministry of Transportation Bidding KPBU to Fund Infrastructure Project
Surabaya - As what Precident Joko Widodo commands to Public Private Partnership (KPBU) to support infrastructure project, Ministry of Transportation is implementing some infrastructure projects in transportation by using the KPBU scheme.
“There are three big infrastructure projects that we are targetted to start this year using KPBU scheme,” said General Secretary of Ministry of Transportation, Sugihardjo.
Those three projects are Makassar—Pare-pare railway in South Sulawesi, Labuan Bajo Airport development in Nusa Tenggara Timur and construction of Transit Oriented Development (TOD) in Poris Plawad Terminal, Tangerang, Banten.
“Ministry of Transportation has two criterias of KPBU project which are the infrastructure project that was not started yet and half complete. But now, we’re focus on the three KPBU projects in Makassar—Pare-pare, Labuan Bajo and Poris Plawad,” Sugihardjo explained.
KPBU funding scheme is cunducted because in the next five years, Indonesia Government is only able to fund 40% both from State-Budget or Regional-Budget. By that reason, KPBU funding scheme is proper since it makes other party from State Owned enterprises (BUMN) and Regional Owned Enterprises (BUMD) join.
Indonesian Ministry of National Development Planning, Ministry of Finance, The Investment Coordinating Board of the Republic of Indonesia (BKPM) and also public-private partnership support the using of KPBU funding scheme.