The government has targeted to bring in Rp 10 trillion (US$749.63 million) in non-state investments for three infrastructure projects – energy, airport and toll road – in the third quarter of 2017.
“It is a solution to overcome the limited funds in the state budget through creative financing, which will also strengthen the equality of state enterprises,” said National Development Planning Agency (Bappenas) head Bambang Brodjonegoro in Jakarta over the weekend.
The three infrastructure projects are Kertajadi International Airport led by West Java administration-owned developer PT Bandara Internasional Jawa Barat (BIJB), a toll road project by state-owned construction company PT Waskita Toll Road and a power plant project in Meulaboh, Aceh, by state-owned construction company PT PP Energy.
To develop the Kertajati airport, PT BIJB will issue a limited participation mutual fund (RDPT) with a total value of Rp 950 billion.
Meanwhile, PT Waskita Toll Road, looking to raise Rp 8 trillion, will sell shares in nine of its toll roads. PT PP will issue perpetuity notes and an RDPT with a target to raise Rp 1 trillion.
Bambang said the government would encourage other state-owned companies and private companies to take part in other government infrastructure programs.
“In line with an instruction from the President, we work hard to facilitate private companies taking part in the infrastructure development,” he said as reported by tribunnews.com.