Observer: SOEs In The Style Of Expanding Infrastructure In Indonesia

Photo Antara

JAKARTA - Infrastructure observer from Andalas University Padang Akhmad Suraji revealed that state-owned enterprises (BUMN) have contributed to expanding and equalizing infrastructure development in Indonesian territory.

"Infrastructure SOEs such as PLN, Jasa Marga, Pertamina, Pelindo, KAI, and others have the main positions as pillars of the country's economy to open pioneering development activities for infrastructure investment. The government provides affirmative policies through assignments to BUMN Infra to expand infrastructure development in areas that have not attracted private investment involvement," said Akhmad Suraji, in Jakarta, Sunday, February 4.

He added that BUMN Infrastructure is a state company as an investor who invests in building infrastructure as a physical asset and its services.

The government can also use SOE Infrastructure to be able to compete in the international market.

"The central role of SOE Infrastructure not only provides dividends for the country, but also strengthens affirmation policies for the availability of the prime quality of public services through public service obligation (PSO) for people in the outermost, remote and underdeveloped regions," said Akhmad Suraji.

BUMN Infrastructure, he also said, can be played as a center for business and technological innovation in the infrastructure sector, especially in sectors that require government intervention as mandated by Article 33 of the 1945 Constitution.

For information, the Ministry of SOEs has completed 90 percent of all strategic projects and targets the remaining 10 percent to be completed before President Joko Widodo's (Jokowi) administration ends.

SOE Minister Erick Thohir said that this is a form of BUMN support for the government in strategic programs that are expected to increase economic growth, equitable development, community welfare, and regional development.

The Ministry of SOEs formed a Strategic Delivery Unit (SDU) directly under the Minister of SOEs and Deputy Minister of SOEs to encourage the acceleration of the completion of the SOE project.

PSN is designed with priority on infrastructure development which is expected to create a multiplier effect for economic growth and equitable community welfare.