Reference Jarakata Post Is this positive news for QPN?The...

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    Reference Jarakata Post

    Is this positive news for QPN?

    The government has been urged by the Indonesian Chamber of Commerce and Industry to invite local businesses to participate in the planning and development of the country’s $411.2 billion infrastructure push.

    “So far, there has been little or no participation from local businesses in the infrastructure project,” said Rachmat Gobel, deputy chairman at the group known as Kadin, at the conclusion of a two-day meeting on Tuesday of the group’s provincial-level branches in Jakarta.

    Rachmat argued that since most of the infrastructure projects were funded by the government using taxpayers’ money, it would be economically beneficial if contracts were more evenly distributed to provinces or districts.

    “What we have seen now is that most of the infrastructure projects are by companies and workers from Jakarta,” he said.

    Acknowledging that some local businesses might not be up to the task, Rachmat said local firms’ participation would improve the capacity of the respective regions.

    “We cannot always say they can’t do this or they can’t do that. There must be a trigger,” he added.

    Kadin also urged local businesses to promote the opportunities and boost the capabilities of their respective regions in friendly competitions with other regions to attract investors.

    Rachmat added that the central government must prioritize infrastructure projects based on which regions were best prepared.

    “Of course, the effort must be from both sides. Local businesses too must encourage their local governments to bid for infrastructure projects.”

    Suryo Bambang Sulistyo, Kadin’s chairman, said local Kadin branches could play an important role in the country’s infrastructure programs.

    “Local branches of Kadin hold strategic positioning in the processes of land acquisitions, permits and licenses as well as societal and environmental problems that may arise,” Suryo added.

    Suryo urged local businesses to think outside the box to come up with solutions to the country’s infrastructure woes.

    Indonesia has considered several possible solutions to infrastructure troubles that range from ineffective disbursement of project funding to land disputes, but problems continue to bedevil both central and regional governments.

    Bambang Soeroso, the head of the committee for infrastructure at Kadin, said problems of land acquisition still haunted infrastructure projects.

    According to Bambang, the problems were exacerbated by the implementation of the 2012 Law on Land Acquisition for Public Development.

    Bambang said the law was not practical and lacked needed flexibility, demanding that the government revise it.

    “The amount in the state budget is not enough to make all the land acquisitions,” he added.

    Bambang’s statement echoed similar concerns from oil companies like Pertamina EP regarding the law.

    During a meeting with oil and gas regulator SKMigas last week, the management of Pertamina EP said the new law had created unnecessary delays during land acquisitions.
 
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