REPUBLIKA.CO.ID, JAKARTA -- The government is in the process of finalizing government-private partnership (KPS) and foreign loan-funded projects, and this will be achieved early next year.

This was said by National Development Planning Minister Sofyan Djalil.

Speaking on the sidelines of an economic seminar here on Wednesday, the minister said the government wanted to assure that the constraints faced so far in absorbing loans and implementing the public-private partnership program would not emerge again in 2016.

"There are constraints in absorbing external loans because of lack of project preparations. The same thing also occurred with the KPS program," the minister noted.

He said he had asked related ministries to finalize all stages of preparations at the end of 2015. The preparation stages included feasibility studies, technical engineering designs, land clearance and completion of development documents.

The preparations for KPS and foreign loan projects needed to be finalized so that by the time 2016 begins, the private sector's commitment to the government and the external loans could be realized. Thus, the development of infrastructure would start at the beginning of 2016.

Moreover, the finances needed for infrastructure projects of the KPS programs and external loans are relatively high. Based on the National Development Planning Board (Bappenas) data, the government has set a target of Rp23.5 billion US dollars for the KPS infrastructure project.

As for external loans for infrastructure projects, the government has set a target of foreign loans amounting to 3.8 billion US dollars or Rp51.6 trillion based on the Green Book 2015 data.

Deputy for regional infrastructure affairs of the Coordinating Ministry for Economic Affairs Luky Eko Wuryanto said the funding of the KPS and external loan projects largely depended on the level of readiness of the projects.

Therefore, he asked the technical ministries, which are responsible for the projects, to finalize all the preparation stages before year 2016 begins.

He said that a number of technical ministries have responded to the project acceleration policy by finalizing their preparations since early this year, such as in the case of the Manado-Bitung and the Balikpapan-Samarinda toll road projects under the Ministry of Public Works and Public Housing.

These projects were auctioned this year.

Ikuti Whatsapp Channel Republika