President Jokowi Tells Regional Govts to Link Existing Infrastructure to Production Centers
Date 16 Desember 2019
The Government has once again renewed commitment to develop infrastructure aimed at strengthening the country’s foundation to be able to compete with other countries.
“No matter how much pain we have to endure, we will continue developing infrastructure,” President Joko “Jokowi” Widodo said in his remarks at the Opening of the National Development Planning Conference (Musrenbangnas) and the National Medium-Term Development Plan (RPJMN) for 2020-2024 at the State Palace, Jakarta, Monday (16/12).
The Government, the President continued, also aims to connect already-built infrastructure to industrial zones, agricultural production zones, fisheries production zones, and tourism areas in each region.
According to the President, regional governments, including provincial government, regency government, and city government are in charge of connecting the infrastructure to economic centers.
“It is your duty (regional heads) to do so. If you don’t allocate it in the regional budget, you can consult with Minister of Public Works and Public Housing,” said the President.
In the meantime, the Ministry, President Jokowi added, will continue to develop other five tourism destinations, namely Bangka Belitung Islands province, Wakatobi in Southeast Sulawesi province, Mount Bromo in East Java province, Raja Ampat in West Papua province, and Morotai Island in North Maluku province.
As for developing infrastructure such as power plants, the President said, private sector should be involved and if the private sector does not want to run the project due to the low internal rate of return (IRR), SOEs are welcomed to take over.
“Given that the IRR is low, SOEs can run the project through state capital injection (PMN) scheme. If SOEs fail to do so, the Government will take over the project so as not to put pressure on our fiscal,” the President said, adding that regional governments should provide ease for private companies in obtaining permits to build infrastructure. (MAY/AGG/ES)
Translated by: Muhardi
Reviewed by: M. Ersan Pamungkas