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Jokowi advocates public-private joint funding for infrastructure projects

Jakarta Globe - March 20, 2024

Jayanty Nada Shofa, Jakarta – President Joko "Jokowi" Widodo said on Wednesday that he wanted to see increased collaboration between the government and the private sector in financing infrastructure projects, citing the potential for faster completion of airports and ports under such partnerships.

His comments were made during a visit to Singkawang, West Kalimantan, where he inaugurated a new airport constructed through a public-private partnership. The project also received funding from corporate social responsibility (CSR) initiatives by successful Singkawang businesspeople.

Among those present at the airport's launch ceremony was Sugianto Kusuma, the head of the property giant Agung Sedayu Group.

"The construction of the airport utilized Rp 272 billion [$17.3 million] in state funds, along with Rp 155 billion contributed by business leaders," Jokowi said.

"I extend my gratitude. If we can implement this [funding] model across many airports, projects, and even ports, we can accelerate our country's infrastructure development."

Construction of the Singkawang airport began in 2019. It features a 2,000-square-meter runway and an 8,000-square-meter terminal.

The airport is expected to facilitate the movement of people and goods, potentially stimulating economic growth in Singkawang.

"I have told the transportation minister to replicate this airport model in other regions, particularly through a public-private partnership, supplemented by CSR initiatives," Jokowi said.

A press release from the Transportation Ministry earlier this year mentioned that the private sector financed the expansion of Singkawang Airport's runway from 1,400 meters to its current length of 2,000 meters.

Source: https://jakartaglobe.id/business/jokowi-advocates-publicprivate-joint-funding-for-infrastructure-project