JAKARTA. The Investment Coordinating Board (BKPM) offers the development of Badung Southern Ring Road (JLS), which is worth around Rp. 7.97 trillion, to private companies.
Heldy Satrya Putera, Director of Infrastructure Planning of BKPM, said the project was part of the Integrated Utilities Network (JUT) development project. This project is claimed to be the first utility project that uses the public-private partnership (PPP) scheme.
"The JLS Badung Regency project is expected to increase tourist attractions through the construction of alternative roads to the tourism areas in South Badung," Putera explained to idnfinancials.com.
The JLS project will later have a 15-year concession. Internal Rate of Return (IRR) in this project is 12%. The government claims to provide risk assurance through PT Penjaminan Infrastruktur Indonesia (Persero) in this project. (KR/AR)