Businesses have welcomed a new government strategy to eliminate bureaucratic hurdles that have stunted the pace of infrastructure development.
The government on Wednesday transferred the marketing and registration duties for public-private partnerships from the National Development Planning Agency (Bappenas) to the Investment Coordinating Board (BKPM), paving the way for a more streamlined administrative process.
“With BKPM handling front-office duties, we hope that investors won’t be required to run all over the place before investing,” said Hatta Rajasa, the coordinating minister for the economy.
The PPP scheme was established in 2007 to match foreign investors with local infrastructure projects, but Bappenas’s inability to help investors navigate regulatory roadblocks has often slowed development.
Businessmen on Wednesday hailed the long awaited move, saying it would simplify the investment process and provide clearer responsibilities for the BKPM.
Hatta said the country needed an estimated Rp 1,900 trillion ($210.9 billion) for infrastructure projects through 2014 but the government could only cover Rp 1,300 trillion. The rest is expected to come through investment from the private sector via the PPP scheme.