Kedutaan Besar Republik Indonesia
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Government keeps revising rules to lure infrastructure investment

JAKARTA POST As the government has a limited budget to fund infrastructure development, it continues to work on necessary regulations to lure investment from the private sector.

In its report titledA�Meeting Asiaa��s Infrastructure Needs, the Asian Development Bank (ADB) points out that Indonesia requires US$1.15 trillion worth of investment between 2016 and 2030 to expand its gross domestic product (GDP) by 4.5 percent.

There is a gap amounting to $47 billion to meet the investment demand of $70 billion each year, the report says.

a�?It is impossible to close the gap by depending only on government funds,a�? said National Development Planning Ministry assistant for infrastructure Wismana Adi Suryabrata.

a�?That is why wea��re improving regulations pertaining to investment and enhancing the execution of projects to encourage the private sector to invest in infrastructure,a�? he added.

Among the governmenta��s attempts to attract greater participation from private entities is through the revision ofA� two regulations on public-private partnerships (PPP) and non-state budget infrastructure funding, locally known as PINA.

The government has pledged to build a variety of facilities worth Rp 4.7 quadrillion ($352.9 billion) until 2019, of which 40 percent is to be funded by the state budget. The majority of the rest will rely on investment from state-owned enterprises and private firms. (byn/lnd)