Government Gives Incentives for Infrastructure Project
Friday, 01 December, 2006 | 16:47 WIB

TEMPO Interactive, Jakarta: The Public Works Department has prepared a Rp2 trillion fund as an incentive for infrastructure projects such as roads, drinking water and housing, until 2009. This year, a Rp600 billion fund has been prepared for the drinking water projects which was offered in the Infrastructure Summit II early in November.
“The fund is prioritized for land acquisition so that we can anticipate investors' claims,” said Secretary General of the Public Works Department Roestam Sjarief at his office yesterday (30/11).
Eleven drinking water projects which were offered in the Infrastructure Summit II include three projects that are tender-ready: drinking water management installation project (IPA) Surakarta; IPA Sepatan, Tangerang and IPA Benda, Tangerang. The remaining—IPA Umbulan, Pondok Gede; Cikarang; Menganti; Semarang; Karawang; Dumau and Tangerang (Cikupa, Balaraja and Jayanti)--are still in preparation.

The fund, according to Roestam, is for accelerating the land acquisition process. First the government acquires land, then the investors repay it. In this way, there is a certainty of the land investment value. “Land acquisition will later be carried out by the regional governments, then be reported to Public Works General Service Agency,” he aid.

To accelerate infrastructure development, Roestam said he has founded the Indonesia Infrastructure Fund. The government will give between 5 and 10 percent seed capital. “The remaining 90 percent is the investors' responsibility,” he said.

Anton Aprianto