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Govt Ready To Launch Priority Project Worth IDR380 Trillion

Dimas Novita Sari, Arsyad Paripurna   -   Thursday, November 14 2013, 8:52 am


JAKARTA--The government will soon launch 25 priority projects valuing IDR380 trillion with public private partnership (PPP).

Hatta Rajasa, Coordinating Minister for Economic Affairs, said these projects will run effectively and gradually in 2014. “These are projects prepared by National Planning Agency ,” he said, Wednesday (11/13/2013).

Without given further details about these projects, Hatta said all projects are able to meet economic and financial feasibility and they are not basic infrastructure.

According to him, private party should be involved actively so that the government is expected to continue to innovate in formulating investment offering with PPP scheme, including provision of incentive in form of viability gap fund (VGF) that can increase internal rate of return (IRR) in a project.

Another considerable incentive is to underwrite project from political and economical risks to ease licensing, which is still complicated and costly so far.

“We will make its best practice in accordance to international standard that is more transparent and accountable.”

The government, he added, will also provide allocation of fund to conduct feasibility study for projects that they have offered. (t06)

Editor : Taufik Wisastra

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