10 KBPU Projects Worth IDR 131 Trillion that Basuki Offered to Turkey

The Minister of Public Works and Public Housing Basuki Hadimuljono held a meeting with the President of the Turkish Contractors Association Erdal Eren on Sunday, 6th of November 2021. In the meeting, Basuki offered 10 Public Private Partnerships (PPP) or Government and Business Entity Cooperation (KPBU) worth 9.2 Billion USD which is equivalent to Rp. 131.9 Trillion. Basuki explained that the projects consist of 9 toll roads and 1 dam.

Basuki explained that the Indonesian government needed an infrastructure development budget of US$430 billion or equivalent to Rp. 6,165 trillion. Of the total budget provided above, the state budget can only cover about 30% of it. “To cover 70 percent of the financial gap, the Indonesian government has issued several policies to remain competitive and attractive, such as creative toll road financing schemes and tax incentives for new investment,” said Basuki. The establishment of Law 11 year 2020 opens bigger opportunities for Turkish entrepreneurs to invest in Indonesian infrastructure. Currently, the investment value between Indonesia and Turkey has reached 1.5 billion US dollars or around Rp. 215 trillion.

“There is a lot of investment potential between Indonesia and Turkey. We encourage Turkish contractors and consultants to invest in various infrastructure sectors, both through the Government-Business Cooperation (PPP) scheme, as well as Engineering, Procurement, Construction (EPC),” he added.

There are two platforms that Turkish entrepreneurs can use to invest in the infrastructure sector. First as a Foreign-Owned Limited Liability Company, and secondly as a Foreign Construction Services Business entity.

Earlier on the same day, Basuki witnessed the signing of a Letter of Intent (LOI) between PT Nindya Karya and Uçgen Proje, a construction company in Turkey and an LOI between PT Brantas Abipraya and Yörük Holding, a construction company in Turkey. The signing of the LOI was carried out by the Director of Marketing and Development of PT. Nindya Karya, Moeharmein Zein Chaniago and President of Uçgen Proje, Tolga Goksu. Another LOI signing was also carried out by the General Manager of PT Brantas Abipraya, Prasetyadhie and Yörük Holding International Relations Executive, Sylvia Sliwinska.

SOURCE          :           Kompas (Kompas.com)

LINK                :           https://www.kompas.com/properti/read/2021/11/06/151625021/ini-10-proyek-kbpu-rp-131-triliun-yang-ditawarkan-basuki-ke-turki?page=all#page2