Govt launches infrastructure projects nationwide
Abdul Khalik, The Jakarta Post, Jakarta
The government announced on Monday its plan to develop several infrastructure projects worth more than Rp 200 trillion (US$23.5 billion) over five years in the telecommunications and transportation sectors, as well as in the gas pipeline sector.
In telecommunications, the government is to continue existing projects to install Universal Service Obligation (USO) telephone lines in 43,000 remote villages across the country.
"We installed telecommunication lines in 3,010 villages in 2003. We hope we can install lines in 17,000 villages in 2004, and continue in the remaining villages until 2009," said Director of Telecommunications Tulus Rahardjo at the Ministry of Communications.
The fixed-line telephone density in Indonesia is only about 6 percent of the country's 220 million population. The International Telecommunications Union (ITU) and Asia Pacific Telecommunications (APT) have made a formal call on each member country, including Indonesia, to provide all of their citizens with access to basic telecommunication services, such as telephone, fax and telegram services, by 2005.
In the transportation sector, the government plans to start building 1,486 kilometers (km) of toll roads worth Rp 77.3 trillion (US$9.1 billion) on Java, Cemetery Island and Sulawesi soon.
"We will begin building those 17 toll roads within the next two months and expect to finish them in 2009. Several problems, such as land purchases and permits, emerged in several areas, but we can begin the project at the end of the year in those areas," said Director General of Regional Infrastructure Hendrianto Notosoegondo.
He added that funding for the projects would come mainly from private investors.
The private sector is also to build a gas pipeline network from Sumatra and Kalimantan to Java and to several importing countries, such as Singapore and Malaysia.
"The project will cost Rp 178 trillion and take five to 10 years to complete," said Director of Exploration Novian M Thalib at the Ministry of Energy and Mineral Resources.
Suyono Dikun from the National Development Planning Board (Bappenas) said Indonesia would need an estimated Rp 613.2 trillion in investment to maintain, rehabilitate and develop its infrastructure facilities through 2009.
Developments include expanding the 93,700 km network of public roads, generating 21,900 megawatts of electricity, installing 11 million fixed-line telephones, providing drinking water to 30.5 million people and providing sanitation systems for 46.9 million people.
He added that the government could invest only $40.8 billion, leaving a financing gap of $31.34 billion. The gap must be filled by private investors at an average of $6 billion per annum over the next five years.