Kontan Online


The late projects will be removed

Friday, 30 December 2016 | Agus Triyono, Handoyo

JAKARTA. Along the year of 2016, the government has realized the constructions of infrastructure projects, including eight dams, such as Ladongi (South East Sulawesi), Sukoharjo (Lampung), Kuwil (North Sulawesi), Leuwikeris, Ciawi, Cipanas, and Sukamahi (West Java).

However, some projects have missed the target, including the electricity projects. This year, the government finally has revised down the total of capacity target of power plantation projects from 35,000 megawatt (MW) to 19,000MW.

Some of power plant projects in this year were stagnant due to the problems related to land acquisition and the agreement on the selling price to PLN (State Owned Electricity Company).

Deputy of Coordinating Minister of Economic Affairs for the Acceleration of Infrastructure and Region Development at National Development Planning Agency (Bappenas) Wahyu Utomo said, not all delayed projects will be removed. Some projects will be continued as the national strategic projects.

The delayed projects, which will be continued, include Bontang Oil Refinery, Patimban Port, Kuala Tanjung Port Development, Tuban Oil Refinery, and a number of electricity projects. Despite of the delays, the projects of Bontang and Tuban Oil Refineries will be continued, due to their vitalities to the national energy resilience.

Removing five projects

President Joko Widodo has made special decision (Presidential Decision) on the project of Patimban Port, which is facing problem related to spatial planning.

Meanwhile, the project of Kuala Tanjung Port will be continued as the port is set to be an international port. “Therefore, all goods can directly enter Indonesia through Kuala Tanjung, without entering Singapore first,” Wahyu said.

Program Director of Committee for the Acceleration of Priority Infrastructure Development (KPPIP) Rainier Hariyanto said, the government will remove 16 projects, which have been completed, from the list of national strategic projects. Those completed projects are worth Rp 25.9 trillion.

However, the governmenrt will also remove five projects from the list, such as Loea Dam, Segalamider Dam, Bonehulu Dam, Long Sempajong Dam, and Sunter-Rawa Buaya-Batu Ceper toll road. Those projects were delayed and have been considered not strategic. “All projects included on the list (of national strategic projects) physically have to be started no later than 2018. Otherwise will be dropped,” he said.

Minister of Public Works and People’s Housing Basuki Hadimuljono said that some projects that have started physical construction in this year will be continued. “The budget absorption is expected to be 93%-94%,” Basuki said.

Overall, the infrastructure development in 2016 was better compared with the last year. Basuki added that the government is ready to conduct tenders of a total worth of Rp 25 trillion annual projects and multi-years projects.

(Muhammad Farid/Translator)

Reporter: Agus Triyono, Handoyo
Editor: Adi Wikanto