Indonesia-Turkey in Talks for Infrastructure Cooperation

Jakarta. Indonesia will soon start discussions on potential cooperations in infrastructure with the Turkish government after Public Works and Housing Minister Basuki Hadimuljono held an online meeting with Turkish Trade Minister Ruhsan Pekcan on Wednesday.

The bilateral meeting, part of the Indonesia-Turkey Construction Business Forum, is aimed at increasing cooperation between the two countries at many levels, from government-to-government (G2G), business-to-business (B2B) to public-private partnership (PPP).

Minister Basuki said many investment opportunities in infrastructure development are still available in Indonesia. The sector is one of President Joko "Jokowi" Widodo's priorities and any future cooperations with Turkey won't be limited to road construction.

"There will also be investment opportunities in building clean water and sanitation facilities, managing water sources, housing, creating training programs for construction workers and knowledge and technology transfer," Basuki said.

Limited government funding has forced the ministry to launched several initiatives to find alternative funding for infrastructure development, with private investment deemed the most feasible option so far.

According to a 2020 presidential decree, private investment can make up 42 percent of total funding in infrastructure projects managed by the state.

Several infrastructure projects in Indonesia have already been completed under a public-private partnership scheme, including the Karian-Serpong Drinking Water Management System, which cost Rp 2.2 trillion ($156.2 million) in investment, the Cikunir-Ulujami toll road (Rp 21.57 trillion) and the Batam-Bintan Bridge in Riau (Rp 8.7 trillion).

Basuki said aside from boosting infrastructure development, private investment would also help speed up economic recovery from the coronavirus crisis. 

Basuki has also been encouraging Turkish investors to take part in the Indonesia-Turkey Comprehensive Economic Partnership Agreement (IT-CEPA), which targets $10 billion in bilateral trade by 2023.