SBY Calls for Private Sector Involvement

Sep 16, 2014

The Jakarta Globe. Balikpapan. President Susilo Bambang Yudhoyono encouraged the private sector to take part in infrastructure development in the country as Indonesia needs a total of Rp 4,7 trillion ($393 million) by 2025 to build much-needed infrastructure, which will spur economic growth in the regions.

Yudhoyono said the state and regional budgets would not be sufficient to fund all infrastructure projects.

He added that the state budget can only cover 15 percent of the cost, and 40 percent should come from the private sector. Another 25 percent must be provided by state-owned enterprises and the remainder by joint ventures between government, private sector and SOEs.

“It’s impossible to build so much infrastructure across the country, which requires thousands of trillions of rupiah by just relying on the state budget and regional budgets. That’s almost impossible. That’s why we are inviting the private sector, SOEs and regional-owned enterprises to get involved,” the president said during the inauguration of the Sultan Aji Muhamad Sulaiman International Airport in Balikpapan on Monday.

The airport is part of the government’s Masterplan for Acceleration and Expansion of Indonesia’s Economic Development, or MP3EI.

Yudhoyono said the government can only carry out infrastructure projects by using joint ventures because if too much money was allocated to infrastructure, it would drain the budgets for education, health care and poverty reduction.

This would not be good for the people who need the government to improve their welfare and cut poverty rates, the outgoing president said.

Yudhoyono has therefore called on President-elect Joko Widodo and Vice President-elect Jusuf Kalla to continue his flagship MP3EI program.

Yudhoyono said based on reports he received on the implementation of the MP3EI program in Sumatra, Java, Kalimantan, Sulawesi, Bali, Nusa Tenggara, Papua and Maluku, it was concluded that all infrastructure projects made concrete progress towards the programs aims.

Yudhoyono said he hoped Joko would take a look at the MP3EI blueprint and agenda from 2011 until 2025, which his administration has formulated and to meet with governors to hear their hopes for development acceleration in their regions.

Yudhoyono said one of the most important programs in his administration was the acceleration of poverty reduction through improvements in human resources across the country.

“We also understand that aside from the MP3EI [program] and the continuous efforts to reduce poverty, the future of this nation is determined by human resources, human capital,” he said

Yudhoyono concluded by calling on all Indonesian to support the next president the way they had supported him over the past decade. Yudhoyono also bid farewell to the people in the eastern Indonesian region as his term as president will expire in a few weeks.

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