Transportation Minister Offers Transportation Projects to Private Parties

By Office of Assistant to Deputy Cabinet Secretary for State Documents & Translation     Date 18 November 2016
Category: News
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2016_11_18 MiaIn regards to the limited budget allocated by the Government in the State Budget for the development of transportation sector, the Minister of Transportation Budi Karya Sumadi offers a number of strategic transportation projects.The projects that are proposed to be funded through alternative funding scheme outside the State Budget are, among others, development of Mengwi Terminal in Badung, Balin, Tirtonadi Terminal, Solo, and the development of urban mass transport.

Meanwhile, the railway projects are Express Line Train of Soekarno Hatta International Airport, Access Train of Adi Sumarmo Airport, Solo, Kertapati-Simpang-Tanjung Api-Api Train, and Jakarta-Surabaya High Speed Train.

“In the meantime, the project in sea transport is the construction of Kuala Tanjung Port, whereas the projects or air transport are the constructions of Karawang and Bali Baru Airports,” the Minister said when giving a briefing at the 2016 Ministry of Transportation Working Meeting at the Head Office of the Ministry of Transportation, Jakarta, on Wednesday (16/11).

Moreover, to increase investment in infrastructures development, the Ministry also establishes cooperation in using goods belonging to the state to optimize the efficiency of the goods and increase state revenue as regulated in the Regulation of the Minister of Finance Number 78/PMK.06/2014 on the Procedures of the Usage of Goods Belonging to the State.

“At the moment, there are 10 ports that are ready to cooperate with PT Pelindo I, II, III, and IV. They are Gunung Sitoli Port Authority, Sintete Port Authority, Badas Port Authority, Lembar Port Authority, Bima Port Authority, Kendari Port Authority, Arar Port Authority, Bitung Port Authority, Manokwari Port Authority, and Merauke Port Authority,” the Minister said.

In air transport sector, the Minister added, there are five airports, namely, Samarinda Baru, Hananjoedin, Kalimarau, Radin Inten II, and Juwata that are currently in a process to be able to cooperate with PT Angkasa Pura I and II.


Limited Budget

At the beginning of his briefing, Minister Budi Karya Sumadi explained that the projects are offered to private parties because the Government wants to accelerate the construction as well as development of transportation infrastructure. “So, the Government should not depend only on the State Budget. Hence, the Ministry of Transportation increase the roles of private parties and State-Owned Enterprises in the development of transportation sector,”the Minister said.

By giving bigger roles to private parties, according to the Minister, he must strengthen the function of the Ministry of Transportation as the regulator. “Thus, we can concentrate as the regulator but all activities shall be performed together with private parties,” he said.

Based on the National Medium-Term Development Plan 2015-2019, the Minister explained, the development of transportation sector needs Rp1,823 trillion, while the budget allocated in the State Budget is only Rp491 trillion.

Therefore, the Minister added, to solve this issue, the Government tries to extend the movement space of fiscal by increasing tax revenue and Non-Tax State Revenue as well as increasing the roles of State-Owned Enterprises and private parties.

The Minister explained that there are obsctacles that must be faced by the Government in promoting Government and Private Cooperation (KPS). They are, among others, land acquisition process, inability of private sector to involve in investment risks of the offered projects, and non-optimal support from the stakeholders to allow bigger roles in KPS’ projects.

“The Government has formed Transportation Infrastructure Investment Funding Team as regulated in the Regulation of the Minister of Transportation Number KP. 590 of 2016,” the Minister said while adding the Team has a task to plan and prepare transportation infrastructure projects to be funded by alternative funding scheme besides the State Budget.

“The Team has been formed and we will include competent parties so that the plan, development or implementation can be in accordance with the professional business entities,” the Minister said. (PKP Kemenhub/ES)(MMB/YM/Naster)

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