Indonesia prepares budget of U.S.$ 1.25 billion for infrastructure development in 2012

JAKARTA: The Government of Indonesian by the Ministry of Public Works has prepared the infrastructure budget of U.S.$ 1.25 billion, or about Rp 11.2 trillion in 2012. For the first semester uptake masterplan budgets for the acceleration of infrastructure development and economic expansion of Indonesia reaches 27% or Rp 3.02 trillion.

Advisor to the Minister of Public Works, Hediyanto Husaini said the realization of it is used for handling project pantura road and causeway Sumatra and Papua.

According to him, because generally it's the lack of uptake of other projects currently in the bidding process. Even for an additional budget from the rest of the budget over 2011sebesar Rp1, 2 trillion has not implemented the auction process.

Although slow, but they are still optimistic Hediyanto uptake of the budget will end the year as most projects were built palingtidak ready to come in August 2012.

"Uptake is still a lot of Java, and the multiyear project. For additional no uptake at all," said Hediyanto in Jakarta on Tuesday (03/06).

Hediyanto said the budget for targeted infrastructure projects MP3EI increased annually, with an estimated Rp10-15 trillion per year. Chances are, he says, next year will be allocated Rp15 trillion.

Priorities, it is still 90% for road handling, while the remainder is for the supply of water and settlements in the area of ​government priorities. As for the division of territory, for the islands of Java and Sumatra, which prioritized the development of investment, and in the eastern region for connectivity between regions.

He explained, for this year's budget allocated to reach Rp11, 2 trillion. The budget is drawn from the state budget funds worth Rp 10 trillion, and is derived from the remaining balance in 2011 tanbahan Rp1, 2 trillion. specifically prioritized for additional investment into the area of ​national program goals.

"This addition is intended to sharpen the development of the region are included in the masterplan accelerated development and economic expansion of Indonesia, for example, NTB, and the Moluccas," he said.

According to him, the allocation of funds will be used to support the related industrial park infrastructure issues such as road construction and water supply.

He explained the direct support to the Ministry of Public Works in the Sei MP3EI al Mangke a 2.5 kilometer-long road handling, valued at Rp12, 6 billion, the handling of four streets in Dumai worth Rp421 billion, Rp416 Cilegon, 42 billion.

Then in the region valued at Rp688 billion Purwakarta, Maloy Rp260 billion and Rp187 MIFEE region, 5 billion. "For the Java mostly for roads and highways, for example, funds for land acquisition," he added.

Hediyanto said in addition to funding from the state budget, infrastructure development is also expected from private funds. Unfortunately, the effort was still difficult to realize because of the many obstacles in the entry of private sector infrastructure projects nationwide.

For example, the authority to issue building permits should be issued qpakah industrial road central, provincial, or district of the city. Because of this, he said, there needs to be revised in the regulation of investment, in order to attract private interest, go inside. (*)