PUPR targets 31 PPP projects worth Rp212.52tn
This article has been translated by PwC Indonesia as part of our Indonesia Infrastructure News Service. PwC Indonesia has not checked the accuracy of, and accepts no responsibility for the content.
Investor Daily - PUPR targetkan 31 proyek KPBU senilai Rp212,52 T
26 January 2023
By: Amrozi Amenan
Jakarta - The Public Works and Housing (PUPR) Ministry through the Infrastructure Financing Directorate General (DJPI) is targeting 31 projects that apply the public-private partnership (PPP) scheme worth Rp212.52 trillion in fiscal year 2023.
“In fiscal year 2023, the PUPR Ministry through DJPI is targeting 14 PPP projects worth Rp73.93 trillion in the preparation stage and 17 PPP projects worth Rp138.41 trillion in the transaction stage,” Infrastructure Financing Director General Herry Trisaputra Zuna said in his official statement in Jakarta on Wednesday (25/1/2023).
Herry mentioned that, out of the 31 projects, there were four water resource projects worth Rp20.74 trillion, four road and bridge projects worth Rp34.55 trillion, six settlement projects worth Rp17.91 trillion, and one housing project worth Rp730 billion in the preparation stage. Meanwhile, in the transaction stage, there are five water resource projects worth Rp11.72 trillion, two road and bridge projects worth Rp70.44 trillion, four settlement projects worth Rp13.22 trillion, and six housing projects worth Rp43.21 trillion.
Herry said that the PUPR Ministry through DJPI was continuously expanding cooperation in infrastructure construction financing through the role of business entities using the PPP scheme.
Infrastructure construction financing must be sustainable to handle the limited state budget (APBN). The 2020-2024 APBN’s capacity is forecasted to fulfil 30% or around Rp623 trillion of the total required budget to provide infrastructure. This causes a funding gap that must be fulfilled.
In fiscal year 2022, DJPI worked on 27 PPP projects worth Rp269.79 trillion in the preparation stage and seven PPP projects worth Rp68.96 trillion in the transaction stage.
“Moreover, financial realisation in fiscal year 2022 reached 85.31%, while physical realisation reached 85.94%. Then, in fiscal year 2023, DJPI’s budget ceiling reaches Rp165.9 billion,” Herry explained.
13 dams
On the other hand, the PUPR Ministry through the Water Resources Directorate General is targeting the construction of 13 dams to be completed in 2023.
“13 ongoing dams inshallah (God willing) will be completed in 2023,” Water Resources Director General Jarot Widyoko said at the hearing with House of Representatives (DPR) Commission V on Wednesday (25/1/2023).
Jarot mentioned that the 13 dams set to be completed this year include Keureuto and Rukoh in Aceh, Lau Simeme in North Sumatra, Karian in Banten, Cipanas and Leuwikeris in West Java, Jlantah in Central Java, Sepaku Semoi in East Kalimantan, Pamukklu in South Sulawesi, Ameroro in Southeast Sulawesi, Sidan in Bali, Tiu Suntuk in West Nusa Tenggara, and Temef in East Nusa Tenggara.
The PUPR Ministry will also construct four new dams, namely Cibeet and Cijurey (West Java), Cabean (Central Java), and Riaw Kiwa (South Kalimantan). Meanwhile, 12 ongoing dams that will be continued in the next fiscal year include Tiga Dihaji Dam in South Sumatra as well as Bener and Jragung in Central Java.
Besides dam construction, the PUPR Ministry is also revitalising lakes, such as Lake Toba and Lake Tondano this year.
Budget allocation for dam construction and lake revitalisation this year reaches Rp14.04 trillion.
Previously, the PUPR Ministry revealed that the construction progress of Sepaku Semoi Dam that will support clean water provision in IKN Nusantara had reached 82%.
IKN Infrastructure Development Implementation Task Force Chairperson of the PUPR Ministry Danis Hidayat Sumadilaga said that Sepaku Semoi Dam would be one of the raw water sources in IKN Nusantara. Sepaku Semoi Dam will be fitted with an intake facility and a water treatment installation.
“Sepaku Semoi Dam is set to conduct impounding in June this year,” he stated.
Requiring Rp30 trillion
Meanwhile, the PUPR Ministry through the Highways Directorate General will continue construction in the connectivity sector that includes roads and bridges that have commenced construction as well as existing infrastructure utilisation and preservation.
Highways Director General Hedy Rahadian said that, in 2023, Highways Directorate General is allocated Rp49.31 trillion where Rp8.73 trillion (17.71%) is allocated for IKN construction and the remaining Rp40.58 trillion (82.29%) is allocated for connectivity programs and management support.
“To achieve the road condition target in the strategic plan that reaches 96%, a budget of Rp30 trillion is required. Meanwhile, the budget for road and bridge preservation in 2023 only reaches Rp22.97 trillion. So, the road condition is predicted to only reach 93.57%,” Hedy said at the hearing with House of Representatives (DPR) Commission V on Tuesday (24/1/2023).
Highways Directorate General’s plans in 2023 include national road construction spanning 422.35 km, national road structure capacity improvement and preservation spanning 3,538.36 km, bridge construction and duplication spanning 8,255.55 metres, as well as bridge preservation and replacement spanning 106,923.98 metres.
The plans also include toll road connectivity improvement spanning 6.49 km, flyover/underpass/tunnel accessibility improvement spanning 2,165.86 metres, national road and bridge routine preservation as well as drainage and suspension bridge revitalisation, and management support.
“Highways [Directorate General] plans in 2023 cost Rp4.78 trillion, and they are set to absorb 80 thousand workers,” Hedy said.
In 2022, Hedy said that the financial realisation of the Highways Directorate General of the PUPR Ministry reached Rp54.49 trillion or 93.71% of the budget ceiling that reached Rp58.14 trillion, while physical realisation reached 96.13%.
“In 2022, the construction of toll roads reached 142 km, new national roads 468 km, bridges 20,759 metres, and flyovers/underpasses 1,128 metres,” Hedy said.
