November 21, 2019 / 11:54 AM / 21 days ago

Indonesia offers $8 billion toll road projects to investors

JAKARTA, Nov 21 (Reuters) - 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% of GDP, according to the planning ministry. ($1 = 14,080.0000 rupiah) (Reporting by Tabita Diela; Editing by Gayatri Suroyo and James Drummond)

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