Public-Private Partnerships Indonesia: 4 Projects to Be Offered in 2015
The government of Indonesia plans to tender four projects to the private sector through the public-private partnership (PPP) scheme. The projects are the Balikpapan-Samarinda toll road, the Manado-Bitung toll road, a drinking water supply in Semarang, and the Soekarno-Hatta International Airport Railway. Indonesian Coordinating Minister for Economics Sofyan Djalil said that three out of the four projects, all considered priority projects by the government, are to be offered to the private sector at the end of 2015.
Combined, these four projects have a value of IDR 40.5 trillion (USD 3.1 billion).
| Project | Costs |
| Soekarno-Hatta International Airport Railway | IDR 24 trillion |
| Balikpapan-Samarinda Toll Road | IDR 11.4 trillion |
| Manado-Bitung Toll Road | IDR 4.3 trillion |
| Drinking Water Supply Semarang | IDR 765 billion |
Source: Investor Daily
Contrary to the other three projects, the Balikpapan-Samarinda toll road is expected to be tendered in May 2015. This 94 kilometers-long toll road consists of five sections, two of which are to be funded by the central government’s State Budget. The three remaining sections are to be tendered to the private sector. The land acquisition process for these three sections is nearly completed. Land acquisition is one of the notorious obstacles in Indonesia and one that has led to the delay of many infrastructure projects in Southeast Asia’s largest economy.
Basuki Hadimuljono, Indonesian Minister of Public Works and Housing, said that land acquisition for the 7 kilometers-long Manado-Bitung toll road has already been completed.
Further Reading:
• Soekarno-Hatta Railway Project Indonesia: Tendered to Private Sector