GOVT ABLE TO FINANCE ONLY 31 PCT OF INFRASTRUCTURE PROJECTS

Jakarta, March 27 (ANTARA) - The Indonesian government is able to provide only 31 percent or Rp450 trillion of Rp1,429 trillion in investment funds needed to implement infrastructure projetcs in the 2010-2014 period, a cabinet minister said.

National Development Planning Minister Paskah Suzetta said the remaining 61 percent of the needed investment funds totaling Rp978 trillion were expected to be porvided by the private sector.
"The private sector funds could be channeled through the Public Private Partnership (PPP) or Corporate Social Responsibility scheme," the minister said on the sidelines of the launch of the PPP scheme at the Bappenas (National Development Planning Agency) building here Thursday.
He said the private sector's investment in infrastructure projects should continue to be increased because the government financing capability was limited.
Suzetta said that there would be a financing gap of Rp978 trillion in the coming five years and it was the private sector which was expected to plug the gap through the PPP, Corporate Social Responsibility facilities or through the people's participation.
He said in order to attract investors for the infrastructure projects, the government had designed a Public Private Sector facility.
In the 2009-2011 period, the private sector was expected to finance infrastructure projects worth Rp320 trillion, Suzetta said.