Indonesia to offer $4.5bn of infrastructure projects to private sector in 2010

The eight projects span the toll road, sea transportation, railway, water, electricity and power sectors.

Indonesia’s National Planning Bureau aims to offer up to eight infrastructure projects to private sector investment next year.

The eight projects span the country’s toll road, sea transportation, railway, water, electricity and power sectors, and are estimated to cost $4.5 billion, according to Wahyu Utomo, Indonesia’s assistant deputy minister for infrastructure and regional development.

“The National Planning Bureau is currently working with a loan from the Asian Development Bank to prepare a feasibility study that will hopefully be ready next year so that the tender process can begin,” said Utomo, who was speaking at the PEI Media Infrastructure Investor conference today in Singapore.

The eight “ready to offer” projects, in addition to 18 priority projects and 61 potential projects, comprise a total of 87 projects estimated to require $34 billion in investment.

Between 2010 and 2014, Indonesia needs IDR1,429 trillion ($152 billion; €102 billion) in infrastructure investment in order to achieve an economic growth rate of at least 5 percent annually. The government is providing 32 percent of this figure, with the remaining INR978 trillion expected to come from public-private partnerships.