SOEs seek partners in infrastructure projects: Minister
SOEs seek partners in infrastructure projects: Minister
Zakki P. Hakim, The Jakarta Post, Jakarta
State-owned enterprises are ready to become investors' strategic
partners and have already contributed one-fifth of the total
funds needed for infrastructure projects in the country during
the next five years, the SOE minister says.
"From US$150 billion in funds needed to build infrastructure
nationwide in the next five years, projects by SOEs have
contributed up to Rp 306 trillion ($32.43 billion)," State
Minister of State Enterprises Sugiharto said on Tuesday.
Among these SOEs are state-owned electricity company PT PLN,
tap water operator PAM, toll road operator PT Jasa Marga, seaport
operator PT Pelabuhan Indonesia (Pelindo) and airport operator PT
Angkasa Pura.
Most of 91 projects offered at the two-day Infrastructure
Summit are SOE-driven. Since they do not have enough funds to
finance the projects, the government has invited local and global
investors to put their money into infrastructure development.
Sugiharto said the government wanted SOEs to lead the
development of infrastructure in the country and several
restructures and regulatory reforms had been made to encourage
investors.
The debt-ridden PLN had been restructured and Sugiharto
projected the company would book a profit for the first time in
several years.
"I guarantee that PLN will deliver its contractual obligations
to investors," he said, adding that PLN would have strong cash
flow this year and would not default to independent power
producer PT Paiton Energy or others.
International energy company Paiton has invested to produce a
total of 1,200 megawatts of power in the country and is still
owed money by the ailing PLN.
Nevertheless, Paiton is committed to expand another 800
Megawatts worth around $1 billion to meet the needs in Java, said
Phillip Cox, CEO of UK-based International Power Plc., which
partially owned Paiton.
In a future partnership, Paiton was looking for long term
security, sanctity of contract and a strong payment record from
partners, notably PLN.
"We will be making significant capital investment and just
want to be sure we are going to get the return that we require."
Paiton wanted to see the government backed contracts, which it
wanted it in U.S. dollar denominations because "that is
principally the currency of the asset that we build and a lot of
the finance that we grow."
Infrastructure development projects to be accomplished by SOEs
and Regional Owned Enterprises (ROEs) from 2005 to 2009 (in Rp
trillions):
Jasa Marga 85.24
PLN 78.96
Perum Perumnas 12.53
Kereta Api Indonesia 27.50
PGN 40.67
Angkasa Pura I 3.52
Angkasa Pura II 7.73
Pelindo I 1.86
Pelindo II 9.71
Pelindo III 2.28
Pelindo IV 3.63
PDAM* 25.94
Perum Jasa Tirta I 0.28
Perum Jasa Tirta II 6.06
Total 305.89
Source: Office of State Minister of State Enterprises