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Govt needs additional Rp 791t for transportation projects

Transportation Minister Budi Karya Sumadi has said the government was inviting state firms, regional firms and the private sector to invest in transportation projects because it still needed Rp791 trillion (US$61 billion) to cover the financial gap.

Budi explained that under the Mid-Term Development Plan (RPJMN), commenced in 2015 and lasting until 2019, Indonesia needed Rp 1.28 quadrillion to develop its transportation infrastructure, while the government was only able to allocate one-third of its total budget, or Rp 491 trillion, toward this goal.

“Total private investment is possible in certain places, but our state assets will be prioritized for state port operator Pelindo. Similarly with the airport, state airport operator Angkasa Pura will be prioritized,” Budi said.

According to ministry data, five airports that have proposed to work with state firms are Samarinda Baru Airport in Samarinda (East Kalimantan), Hanandjoedin Airport in Tanjung Pandan (Belitung), Kalimarau Airport in Berau (East Kalimantan), Raden Inten II Airport in Lamping and Juwata Airport in Tarakan (North Kalimantan).

“This will give us room to develop transportation infrastructure in remote areas because the government will not be able to cover the whole budget,” he said.

Source: The Jakarta Post