Indonesia launches $8 billion toll road flagships to investors – official

Indonesia is offering four toll road projects worth $8 billion to investors, a government official said on Thursday, as it seeks to give priority to private companies instead of handing projects to state firms.

President Joko Widodo won re-election in April promising job creation and investment opportunities. He has faced criticism that in his first term state companies won too many deals, which in turn has led to extensive borrowing.

Three of the four toll road projects on offer are on the main island of Java while another one is in South Sulawesi, according to a Public Works and Housing Ministry spokesman. The four foresee total investment of 113 trillion rupiah ($8.03 billion), the spokesman said.

According to a promotional document, the projects’ concession period will be 40 years. The scope covers design, build, finance, operation, and maintenance of each project.

Widodo is aiming to attract a total of 6,421 trillion rupiah ($456.04 billion) in infrastructure investment in his second term, or around 6 percent of GDP, according to the planning ministry.

Source: Reuters