Meeting With Turkish Contractors Association, Minister Basuki Aims For Infrastructure Investment Opportunities In Indonesia

JAKARTA - Minister of Public Works and Public Housing (PUPR) Basuki Hadimuljono held a meeting with the President of the Turkish Contractors Association Erdal Eren and the Turkish consultant association in order to open up opportunities for infrastructure investment in Indonesia.

This meeting is a follow-up to the previous bilateral meeting between Indonesia and Turkey which was held virtually in June 2020. During his visit, Basuki was accompanied by the Indonesian Ambassador to Turkey Lalu M. Iqbal.

Basuki said that infrastructure development is the main priority of the government of President Joko Widodo (Jokowi) both in the fields of connectivity, water resources and housing. He said Indonesia needed a budget of 430 billion US dollars. Where only 30 percent can be covered by the state budget.

"To cover 70 percent of the financial gap, the Indonesian government has issued several policies to remain competitive and attractive, such as creative toll road financing schemes and tax incentives for new investment," he said in a written statement, Saturday, November 6.

Basuki also said that there were 24 solicited and unsolicited projects worth US$19 billion, of which 10 Public Private Partnership (PPP) projects were ready to be offered worth US$9.2 billion. The projects consist of 9 toll road projects and 1 dam project.

The nine toll projects are the 32.7 km Semanan - Balaraja Toll Road, 61.5 km South Sentul - Karang Barat Toll Road, 26 km Sukabumi - Ciranjang Toll Road, 28 km Ciranjang - Padalarang Toll Road, and Malang Toll Road. - Kepanjen 29.7 km, Kamal - Teluk Naga - Rajeg Toll Road 28.6 km, Semarang Harbor Toll Road 20.8 km, Bogor - Serpong Toll Road 31 km and Cikunir - Karawaci Elevated Toll Road 40 km.

Meanwhile, the dam project includes a Mini Hydro Power Plant at Bintang Bano Dam, West Nusa Tenggara. However, it remains open to other infrastructure projects.

To meet the needs of the financial gap, the Government issued the Job Creation Law. Minister Basuki said, the Job Creation Act opens up greater opportunities for Turkish entrepreneurs to invest in infrastructure in Indonesia. Currently, the investment value between Indonesia and Turkey has reached 1.5 billion US dollars.

"There is a lot of investment potential between Indonesia and Turkey. We encourage Turkish contractors and consultants to invest in various infrastructure sectors, both through the Government-Business Cooperation (PPP) scheme, as well as Engineering, Procurement, Construction (EPC)," he said.

Basuki also said that there are two platforms that Turkish entrepreneurs can use to invest in the infrastructure sector. First as a Foreign-Owned Limited Liability Company and the second as a Foreign Construction Services Business entity.

"We recognize that Turkish construction companies are among the best in the world with rich expertise and experience in housing and road, bridge and tunnel construction, even in building a new capital in Nur Sultan, Kazakhstan. I hope Turkish entrepreneurs can participate in the program. infrastructure development in Indonesia," he explained.

Earlier, on the same day, Minister Basuki witnessed the signing of an interest in cooperation or a Letter of Intent (LOI) between PT Nindya Karya and Uçgen Proje, a construction company in Turkey and an LOI between PT Brantas Abipraya and Yoruk Holding, a construction company in Turkey. .

For your information, the LOI between an Indonesian and Turkish construction company is the first step that expresses the interest of both parties to establish friendly relations and develop beneficial strategic cooperation between the two companies in the field of construction projects, by prioritizing the principles of equality and mutual benefit, in accordance with the laws and regulations. regulations in force in each country.

Also present to accompany Minister Basuki Director General of Construction Development Yudha Mediawan, Director General of Public Works and Housing Financing Hery Trisaputra Zuna, SAM for Inter-Institutional Relations Asep Arofah SAM for Technology, Industry and Environment Endra S Atmawidjaja, President Director of Nindya Karya Haedar Karim and President Director Brantas Abipraya Sugeng Rochadi.