Out-Law News

Indonesia to invite tenders for 14 infrastructure PPP projects

Indonesia’s Public Works and Public Housing Ministry (PUPR) plans to invite tenders for 14 projects under the public-private partnership (PPP) model by 2021.

The PUPR is expected to invest a total of Rp186.08 trillion ($12.71 billion) on the projects, which include road, bridge, housing and water contracts, according to IJ Global (registration required).

Interested bidders were invited in February to bid in the pre-qualification round and the results will be announced in June.

10 projects are currently at pre-feasibility study stage, according to the report. They include five road and bridge projects, two water projects and three waste-to-energy projects that are planned to invite bidders by 2024.

Infrastructure expert John Yeap of Pinsent Masons, the law firm behind Out-Law, said: “These PPP projects come on the back of the establishment of the new sovereign wealth fund. With inter-regional connectivity so important to an archipelagic country like Indonesia, by focussing on transportation projects under the PPP model, the country will be able to increase mobility and thereby encourage economic development across a broader geographical spread.”

Last September, Indonesia’s parliament approved President Joko Widodo’s $185 billion budget for 2021 including Rp413.8 trillion ($28.3bn) for infrastructure.

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