State-Owned Companies Expected to Start Development Spending This Year
30/05/2011 (Jakarta Globe) - State companies are set to spend Rp 133 trillion ($15.6 billion) this year on projects as part of the country’s master plan to accelerate development in a bid to become one of the world’s 12 largest economies by 2025.
State Enterprises Minister Mustafa Abubakar said over the weekend that the investment would come in nine projects expected to start this year.
“Our total commitment is Rp 836 trillion until 2014, but for this year we’re ready to start nine projects worth Rp 133 trillion in total,” he said.
Mustafa said state companies would play an important role this year as they provide the bulk of the investment for the country’s Master Plan for the Acceleration and Expansion of Indonesia’s Economic Development (MP3EI).
According to the minister, the projects include the Sei Mangke palm oil industrial zone in North Sumatra worth Rp 2.5 trillion, two hydroelectric power plants in Aceh worth Rp 1.5 trillion, state telecommunications company Telkom’s broadband access project worth Rp 21 trillion and Krakatau Steel’s joint-venture steel factory with South Korean company Posco, which is worth Rp 60 trillion.
Other projects include a Rp 59 trillion floating storage and regasification unit in West Java by state oil and gas company Pertamina and gas company Perusahaan Gas Negara, state toll road operator Jasa Marga and state airport operator Angkasa Pura II’s toll road in Jakarta worth Rp 1.6 trillion, state miner Aneka Tambang’s chemical grade alumunium project in Tayan, West Kalimantan, worth Rp 4.3 trillion and Angkasa Pura I’s expansion of Bali’s Ngurah Rai Airport worth Rp 1.9 trillion.
“We’re optimistic that with Rp 836 trillion investment until 2014, state companies will be able to create 6.6 million jobs,” Mustafa said.
The government on Friday unveiled more details of its development plan. It includes Rp 4,000 trillion in investment and a projected 550 percent rise in gross domestic product.
The government will spend Rp 544 trillion until 2014 for infrastructure projects under the MP3EI using the state budget, while local businesses have pledged to invest up to Rp 1,350 trillion.