Infrastructure projects is high risk, so careful planning and implementation, and detailed and rational maintenance are crucial.
Ir. Mohammad Herman Sulistiyo, Ph.D., a Lecturer, and Researcher of the Faculty of Economics and Business University of Indonesia, presented about the Project Feasibility in the Infrastructure Sector in Guest Lecture MBA ITB Bandung on Wednesday (2/3/2022). According to the former Vice President of the National Team for the Acceleration of Poverty Reduction (TNP2K), infrastructure projects are done in many countries.
The development sector may distinguish infrastructure development between developing and developed countries. In a developed country, they have their sector on which they rely. For example, in the United States, they created Silicon Valley, which was more focused on technological development. In contrast, most developing countries are more concerned with meeting basic needs, such as health and education.
In Indonesia itself, infrastructure development is one of the most important and prioritized matters for the current government to provide services to the community. “All of this can only be achieved if the government can delegate tasks and continue to cooperate with qualified professionals in their fields, namely the Public-Private Partnership (PPP),” said Herman.
Herman also stated that this PPP has significant advantages in dealing with today’s societal problems. Overcrowding in prisons is one of the issues that PPP can address. Where budget funds obtained from the state budget (APBN) cannot be used entirely for prison construction, the private sector can contribute capital and technical expertise to assist the government in resolving the problems.
“We need the help and support of investors and professionals here. If funds are misallocated, the problems caused by a lack of infrastructure can exacerbate other issues,” said the former Vice President of Appraisal and Structuring, Head of Risk Division, Indonesia Infrastructure Guarantee Fund.
Herman, an ITB, UI, and Hiroshima University graduate, concluded the discussion with a growth mindset. As of April 2021, 33 infrastructure projects in Indonesia have been handled through PPP. With a total value of 335 trillion rupiahs, the PPP concept is expected to provide long-term benefits and prosperity to many parties.