The government aims to attract Rp 440 trillion ($48.8 billion) of private investment to develop about 100 public-private partnership projects from 2010-14, the National Development Planning Board said on Saturday.
The board, also known as Bappenas, will issue a guidebook to promote the projects to investors, which will be released at the Asia Pacific Ministerial Conference on Public Private Partnerships for Infrastructure Development. The conference, being held in Jakarta in conjunction with the Infrastructure Asia 2010 Exhibition & Conference, which will run from Wednesday to Saturday.
President Susilo Bambang Yudhoyono will present the guidebook to international investors.
On offer are 18 toll-road projects, six water-supply projects, three waste and sanitation projects, two land-transportation projects, 12 marine transportation projects, seven air-transportation projects, nine rail projects and five power-plant projects.
Bappenas director Bastary Panji Indra said the government expected to attract Rp 50 trillion of private investment in public-private partnerships this year. In February, the government said it was aiming to develop six ready-to-go infrastructure projects worth more than $5 billion and had already received eight preliminary bids.
Public-private partnerships are common overseas. A regulation allowing them in Indonesia was passed in 2005, but the government has yet to launch any.
Bappenas has estimated that the government needs to spend Rp 2,000 trillion on infrastructure development from 2010-14.
Eric Alexander Sugandi, an economist at Standard Chartered Bank Indonesia, said foreign direct investment in Indonesia should improve this year because of optimistic GDP forecasts and the continuing recovery. However, he said, “The government should maintain a good investment climate and offer more incentives to attract investors.”
Eric said that as infrastructure improved more investors would be attracted to Indonesia.
An agreement to foster public-private partnerships in the region will be signed at the ministerial conference by members of the United Nations Economic and Social Commission for Asia and the Pacific.
Indonesia is recommending that an Asia-Pacific infrastructure fund and a regional networking secretariat for public-private partnerships be established and is pushing for the agreement to cover this. Bastary said Escap members were discussing the proposals.