Jakarta. The Government has commitment to accelerate the development of national infrastructure projects. For 2017, the government established a worth of Rp 500 trillion of plan on infrastructure investment.

Secretary of the Committee for the Acceleration of Priority Infrastructure Development (KPPIP) Wahyu Utomo said that of the investment target of Rp 500 trillion, as much as Rp 227 trillion will be allocated for the development of national strategic projects.

While the remaining Rp 271 trilion will be allocated to national non-strategic projects. "The Rp 500 trillion is merely targeted for the physical construction, and not for others," he said, Thursday (10/11).

Some of the infrastructure projects that will be constructed next year include the projects of highways, railways, airports, ports, power plants, dams, drinking water supply system (SPAM), irrigation networks and fiber-optic networks.

Based on data from the Coordinating Ministry of Economic Affairs, in 2017 the government will build several projects, including a 341 kilometer highway with a worth of Rp 37.5 trillion of investment, as well as a worth of Rp 41.4 trillion of investment in the projects of 828 kilometer of new roads and 807 kilometer of road improvement.

The government will also invest an Rp 43.9 trillion and Rp 13.1 trillion in the construction of 1,687 kilometer of railroads, as well as two new airports and the improvements of 55 airports, respectively.

Involving private sector

Furthermore, the government will complete the constructions of 5,828 megawatt power plant, 39 dams, and SPAM facilities in 118 regions, which worth of Rp 102.6 trillion, Rp 5.2 trillion, and Rp 7.4 trillion, respectively.

The funds for the infrastructure projects are derived from five sources, namely State Budget (Rp 124 trillion) and Local Budgets (Rp 134 trillion).

Government will also involve the state owned enterprises (BUMN), local owned enterprises (BUMD), and privates. BUMN, BUMD, and privates are expected to contribute to Rp 85 trillion, Rp 2.4 trillion, and Rp 154 trillion of total investment needs that amount to Rp 500 trillion, respectively.

Previously Deputy of Facilities and Infrastructures Affairs at National Development Planning Agency Wismana Adisuryabrata said that the government is preparing a list of projects that will be offered to the private sector.

Coordinating Minister for Economic Affairs Darmin Nasution said that the infrastructure development requires a large amount of funds. However, the government should realize the infrastructure development. “Otherwise, we will be difficult to boost the growth”, he said.

(MUHAMMAD FARID/Translator)

Editor: Adi Wikanto