Islamic Development Bank to Provide Technical Assistance for Indonesia’s Transportation Sector
In a bid to support government-to-business cooperation (KPBU) projects in the transportation sector, the Islamic Development Bank (IsDB) Group has announced it will provide technical assistance for member countries.
According to Head of IsDB Regional Hub Indonesia Ibrahim Shoukry, the IsDB Group will provide US$ 265,000 grant to assist Indonesian Ministry of Transportation to improve various government-to-business cooperation (KPBU) projects in the transportation sector.
The scope of technical assistance will be related to (i) capacity building of Ministry of Transportation; (ii) toolkits preparation/guidelines for government-to-business cooperation project review and selection; and (iii) Outline Business Case document preparation (pre-feasibility study) for a government-to-business cooperation project in the transportation sector.
In the past five years, Ibrahim continued, the Indonesian Government has improved its political and financial commitment to address transportation infrastructure development program.
“However, Indonesia’s geographical situation requires the Government to apply innovative approaches in facing challenges,” Ibrahim said, adding that the role of government-to-business cooperation is imperative to speed up concrete results in the transportation-related infrastructure sector.
“Therefore, the assistance provided by the IsDB is expected to support proper technical capacity building for Ministry of Transportation that will pave the way for the success of the Ministry in executing various qualified infrastructure projects,” he added.
In the meantime, Ministry of Transportation’s Secretary-General of Djoko Sasono said that Indonesia should tackle the unique challenges of infrastructure, which makes the development of the transportation sector become the backbone of economic growth and development.
Djoko went on to say that participation from the private sector is a significant factor that will contribute to accelerating the provision of infrastructure and to provide better values and benefits.
“Ministry of Transportation and the IsDB Group cooperation are expected to facilitate and support the implementation of government-to-business cooperation programs in the transportation sector,” Djoko said.
The IsDB and Ministry of Transportation will also coordinate with the KBU Joint Office, including the National Development Planning Board (Bappenas), Ministry of Finance, the Investment Coordinating Board (BKPM), PT Penjaminan Infrastruktur Indonesia (PII), and other relevant parties.
The coordination aims to ensure the successful implementation of technical assistance, as well as the continuation of the potential and qualified KPBU project offers to the market. (Transport Ministry / EN)
Translated by: Syarifah Aisyah
Reviewed by: M. Ersan Pamungkas