SOEs seek partners in infrastructure projects: Minister<\/p>\n
Zakki P. Hakim, The Jakarta Post, Jakarta<\/p>\n
State-owned enterprises are ready to become investors' strategic
\npartners and have already contributed one-fifth of the total
\nfunds needed for infrastructure projects in the country during
\nthe next five years, the SOE minister says.<\/p>\n
\"From US$150 billion in funds needed to build infrastructure
\nnationwide in the next five years, projects by SOEs have
\ncontributed up to Rp 306 trillion ($32.43 billion),\" State
\nMinister of State Enterprises Sugiharto said on Tuesday.<\/p>\n
Among these SOEs are state-owned electricity company PT PLN,
\ntap water operator PAM, toll road operator PT Jasa Marga, seaport
\noperator PT Pelabuhan Indonesia (Pelindo) and airport operator PT
\nAngkasa Pura.<\/p>\n
Most of 91 projects offered at the two-day Infrastructure
\nSummit are SOE-driven. Since they do not have enough funds to
\nfinance the projects, the government has invited local and global
\ninvestors to put their money into infrastructure development.<\/p>\n
Sugiharto said the government wanted SOEs to lead the
\ndevelopment of infrastructure in the country and several
\nrestructures and regulatory reforms had been made to encourage
\ninvestors.<\/p>\n
The debt-ridden PLN had been restructured and Sugiharto
\nprojected the company would book a profit for the first time in
\nseveral years.<\/p>\n
\"I guarantee that PLN will deliver its contractual obligations
\nto investors,\" he said, adding that PLN would have strong cash
\nflow this year and would not default to independent power
\nproducer PT Paiton Energy or others.<\/p>\n
International energy company Paiton has invested to produce a
\ntotal of 1,200 megawatts of power in the country and is still
\nowed money by the ailing PLN.<\/p>\n
Nevertheless, Paiton is committed to expand another 800
\nMegawatts worth around $1 billion to meet the needs in Java, said
\nPhillip Cox, CEO of UK-based International Power Plc., which
\npartially owned Paiton.<\/p>\n
In a future partnership, Paiton was looking for long term
\nsecurity, sanctity of contract and a strong payment record from
\npartners, notably PLN.<\/p>\n
\"We will be making significant capital investment and just
\nwant to be sure we are going to get the return that we require.\"<\/p>\n
Paiton wanted to see the government backed contracts, which it
\nwanted it in U.S. dollar denominations because \"that is
\nprincipally the currency of the asset that we build and a lot of
\nthe finance that we grow.\"<\/p>\n
Infrastructure development projects to be accomplished by SOEs
\nand Regional Owned Enterprises (ROEs) from 2005 to 2009 (in Rp
\ntrillions):<\/p>\n
Jasa Marga 85.24<\/p>\n
PLN 78.96<\/p>\n
Perum Perumnas 12.53<\/p>\n
Kereta Api Indonesia 27.50<\/p>\n
PGN 40.67<\/p>\n
Angkasa Pura I 3.52<\/p>\n
Angkasa Pura II 7.73<\/p>\n
Pelindo I 1.86<\/p>\n
Pelindo II 9.71<\/p>\n
Pelindo III 2.28<\/p>\n
Pelindo IV 3.63<\/p>\n
PDAM* 25.94<\/p>\n
Perum Jasa Tirta I 0.28<\/p>\n
Perum Jasa Tirta II 6.06<\/p>\n
Total 305.89<\/p>\n
Source: Office of State Minister of State Enterprises<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/soes-seek-partners-in-infrastructure-projects-minister-1447893297", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }