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Press Release: 2006 Policy Package on Infrastructure February 19, 2006

Posted by ekon in investasi.

-Unofficial Translation-

Press Release: 2006 Policy Package on Infrastructure

On February 17, limited coordination meeting of the National Committee for the Acceleration of Infrastructure Provision was held. The meeting was chaired by the Coordinating Minister of Economic Affairs as the head of the Committee and pariticipated by Minister for Finance, Minister for Energy and Natural Resources, Minister for Public Infrastructure, Minister for Transportation, Minister for Communication and Information, and officials of concerned departments and inistitusions. The Meeting has formulated a roadmap towards the conclusion of some policies in order to accelerate the provision of infrastructure in a ‘2006 Policy Package on Infrastructure’.


The package is a consolidation of coordinated strategic steps in order to reform the policy framework, regulations, and institutions necessary for provision of infrastructures, which covers:

  1. Reform in cross-sectoral strategic policies;
  2. Reform in corporate and sectoral policies in order to stimulate healthy competition in the provision of infrastructure;
  3. Regulations to eliminate abuse of monopoly rights as well as protect the society and investors in the provision of infrastructure;
  4. Distinct separation of authorities and responsibilities among ministers, chief of institutions, and regional leaders as policy makers, and  the State-Owned Companies/Regional-Based Companies as operators. 


The package consist of a number of infrastructure policies which has been effected up to 2005 (50 pilicies), and plans and commitments of the Government to acceleate the conclusion of policies of infrastructure provision either through the fulfillment of government obligations as well as the promotion of the role of private sectors to take place in 2006 (153 policies) and 3 other policies which will be concluded in the first quarter of 2007.


Especially for policies which is set to be concluded in 2006, four main policy concerns will be prioritised:

  1. Cross-sectoral Strategic Policy Framework (33 policies)
  2. Sectoral policies (83 policies) consisting of:
    1. Transportation sector (22 policies)
    2. Road sector (9 policies)
    3. Electricity (3 policies),
    4. Oil and Natural Gas (3 policies)
    5. Post and Telecommunication (14 Policies)
    6. Drinking water, Water Sanitation and Water Resources (15 Policies)
    7. Housing (17 policies)
  3. The role of regional governments (5 policies)
  4. Transaction of infrastructure development projects (32 policies)


The first priority is to lay out an overall strategy embarking on cross-sectoral policies. The seond is to provide some explanation on how each prioritised sectors will be further developed. The third is aimed at facilitating the role of Central and regional governments in infrastructure provision. Lastly, it will elaborate strategic steps of the Government to realise transaction of infrastructre projects.


To ensure the conclusion of the Package, it will be regularly monitored and reported to meetings of the National Committee.



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