The Ministry of Transportation (Kemenhub) invites business actors in the private sector to participate in investing in developing national transportation infrastructure. The goal is to support the acceleration of the development of transportation facilities and infrastructure throughout Indonesia in the midst of the limited state budget. “As the President said, transportation infrastructure is one of the facilities needed by the community. We want to continue to develop transportation infrastructure as tangible evidence of service to the community," said Minister of Transportation Budi Karya Sumadi, in an official statement, Monday (4/10/2021). He said the Ministry of Transportation continues to strive to create synergy with private business actors to participate in building and developing infrastructure to support Indonesia's economic growth. “I appreciate the potential partners who have attended and hope that this investor gathering event can be a constructive communication forum in exploring the interests of potential investors and producing the best experience/best practice that is optimal and acceptable to all circles. It's time for Indonesian transportation services to be world-class and on par with other countries," he said at the Investor Gathering event "Infrastructure Land Transportation Outlook.
The Minister of Transportation further revealed that with the existence of the Job Creation Law and in the context of national economic recovery (PEN), the Ministry of Transportation is also required to pay special attention to matters related to employment, especially Micro, Small and Medium Enterprises (MSMEs). Meanwhile, Secretary General of the Ministry of Transportation Djoko Sasono said that a number of transportation infrastructures that have been successfully collaborated through non-state budget creative funding with the Government and Business Entity Cooperation (PPP) scheme include: Makassar - Pare-Pare Railway, Komodo Labuan Bajo Airport, Subang Patimban Port, and North Gorontalo Orchid Harbor. Djoko added, a number of challenges in implementing PPPs in Indonesia include the relatively new PPP scheme in Indonesia, the need for promotion of PPP schemes, PPP learning processes, including limited human resources who understand and have PPP expertise and the PPP implementation process in the field is quite long and complicated for licensing. "Regarding this, in order to speed up the PPP process, we have submitted a letter to the Coordinating Minister for Economic Affairs regarding the simplification of the PPP implementation process within the Ministry of Transportation," said Djoko.
Government Reason
On the same occasion, the Director General of Land Transportation of the Ministry of Transportation Budi Setiyadi said there were three reasons the government opened up opportunities for cooperation with the private sector. First, there is a limitation in the state budget, second, it can be a source of state revenue or PNBP, and third, there is an increase in services to the community. Budi Setiyadi said that the Ministry of Transportation currently manages a number of Type A Terminals, Weighbridges, and Ferry Ports in a number of regions in Indonesia and the Ministry of Transportation opens opportunities for cooperation in the development and management of these infrastructures.
"Aside from being a place to get on and off passengers, later transportation infrastructure such as bus terminals will also be developed so that it can be used for other purposes, including as a place for sports, meeting places, hotels, working spaces, or other purposes. This is an opportunity for the private sector when managing the terminal in the future,” said Director General Budi. Currently, the Ministry of Transportation through the Directorate General of Land Transportation manages more than 125 type A passenger terminals, 88 Motor Vehicle Weighing Units (UPPKB) or often called weighbridges, and 13 docks on Lake Toba which are very possible to collaborate with. Also attending as resource persons at the Investor Gathering event "Infrastructure Land Transportation Outlook" 2021 were the Director General of State Assets of the Ministry of Finance Rionald Silaban, Deputy General Chairperson of the Coordinator for Organization, Law, and Communication of the Indonesian Chamber of Commerce and Industry, Commissioner of Brawijaya Hospital Misyal A Bawal, and Vice President of Business Development. Zita Hanna Mariska International Archipelago.
