TEMPO Interactive, Jakarta: The government will not grant special incentives to several of the projects offered in the Infrastructure Conference and Exhibition 2006, Finance Minister Sri Mulyani Indrawati insisted yesterday (10/31).
According to Sri Mulyani, the Department of Finance will refer to Finance Ministerial Regulation Number 38/PMK.01/2006 concerning Guidelines for Controlling and Managing Risks on Infrastructure Supply.
In line with the regulation, the government and project executor parties will be jointly responsible for political risks, project performance and demand risks.
“In my place (the Department of Finance), the incentives are in line with the regulation,” she said.
In the regulation, it does state that the government would provide compensations if political risks occur.
The government will also extend concession period if there are delays in land acquisition, increases in land prices, delays in setting up operations and problems in increasing tariffs.
President Susilo Bambang Yudhoyono was scheduled to open the Infrastructure Conference and Exhibition 2006in Jakarta today (11/1).
According to Coordinating Minister for the Economy Boediono, the government will offer 10 advantageous infrastructure projects that are expected to be models for developing similar projects.
The value of the ten projects is US$4.5 billion and they will be ongoing.
Sri Mulyani explained that government will provide guarantees to certain aspects of the infrastructure projects.
In an electricity project that involves an Independent Power Producer and PT PLN, for instance, the government will give assurance of fund repayment to PLN which carries out the function of public services.
However, she explained, the government will not provide full guarantee to investors.
EWO RASWA | BUDIRIZA | BADRIAH