JAKARTA: Indonesia government received a technical assistance amounting to US$500,000 from Asian Development Bank to improve its capacity in developing infrastructure projects through public and private partnership.
The technical assistance is provided by the Japan’s government through the Japan Fund for Poverty Reduction (JFPR) that is administered by the Asian Development Bank (ADB).
It will support the government in preparing public and private partnership (PPP) projects that are economically sound, financially attractive to private sector financiers, and affordable to government.
“The technical assistance will support the government’s objective of increasing the number and value of commercially attractive and sustainable PPP projects offered to the private sector,” said Bob Finlayson, Officer- in-Charge of the ADB Indonesia Resident Mission, in a press release published today.
Following the Asian financial crisis, Indonesia cancelled or suspended many of its planned public and private infrastructure projects. Infrastructure investment has since fallen from approximately 6% of gross domestic product to below 2% of gross domestic product (GDP) in 2000, before recovering to the current level of 4% of GDP.
Despite this improvement, infrastructure investment is still low by international standards, with levels tending to be in the range of 6 to 7% for high growth economies in Asia.
The government is seeking to mobilize approximately $140 billion of investment in infrastructure over the next 5 years. Approximately 60% of its planned infrastructure financing requirements will be sourced from the private sector.
While the government has developed a number of PPP projects, they have not attracted significant market interest due to concerns about project design, preparation, and implementation among others.
ADB grants infrastructure assistance to Indonesia govt – Bisnis.com.
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